"Retirement" Planning
As I’ve said elsewhere, “retiring” is a terrible word for a life phase. It might accurately describe a type of person (shy, quiet, private), but for a life phase lasting, for wealthier people, 20 to 30 or more years? No. The word and all associated “golden leisure” images need to disappear. Americans are in the process of creating a new vision for a life phase that, until recently, barely existed. Our “last third” of life will look different for each of us; but whatever we decide to call it (Rewirement™? Refirement? Renewment? Elderhood?), it’s a mistake to leap into those years without a plan.
FINANCIAL REALITIES
Having a life plan is every bit as important as having a financial plan for these years. But before I get into life planning, I want to acknowledge that for far too many people, just having a financial plan is a fantasy. The U.S. economy has been punishing for many workers for decades, as worker productivity and corporate profits have soared, and wages have remained stagnant. The appalling greed-driven 2008 financial collapse eliminated the savings of millions of people who had managed, against all odds, to put a little away.
In fact, the number of older people filing for bankruptcy has never been higher. Here is some general information about this trend:
On average, African-American, Hispanic, and LGBTQ agers have much less wealth to fall back on in later years than do whites. As parlous as the finances of a large percentage of lower-income whites are, the picture for most minority and LGBTQ households is much worse. Here are some useful articles:
Some resources regarding finances
“RETIREMENT” LIFE PLANNING
Whatever our financial reality, we all can benefit greatly from a life plan for our post-working years: a plan for how to fulfill our purpose, to continue (or begin) to contribute in a way that makes our hearts sing, to love our lives, as difficult as they might be in some ways.
I enjoy facilitating small groups of people who are beginning to think about how to transition out of their current work roles and into new life roles, with or without paid work in the picture. If you’re interested in starting a group, contact me! Meantime, here are some resources to get you thinking.
Excellent retirement books & websites:
FINANCIAL REALITIES
Having a life plan is every bit as important as having a financial plan for these years. But before I get into life planning, I want to acknowledge that for far too many people, just having a financial plan is a fantasy. The U.S. economy has been punishing for many workers for decades, as worker productivity and corporate profits have soared, and wages have remained stagnant. The appalling greed-driven 2008 financial collapse eliminated the savings of millions of people who had managed, against all odds, to put a little away.
In fact, the number of older people filing for bankruptcy has never been higher. Here is some general information about this trend:
- From the New York Times, “’Too Little, Too Late.’ Bankruptcy Booms for Older Americans.”
- The original academic article on which the Times article is based, “The Graying of U.S. Bankruptcy.”
- The book, 55, Underemployed, and Faking Normal: Your Guide to a Better Life, by Elizabeth White, is a harrowing account of one woman's tumble from full, prestigious employment toward financial ruin. White points out that nearly half of Americans (47%) are unable to scrape together $400 to cover an emergency, that half of Americans have no retirement savings at all, and that the median value of retirement savings among 55- to 64-year-olds is $104,000. White offers excellent guides to "resilience circles" and other resources meant to generate solidarity and visibility among the millions of people with nowhere near the resources they need to retire. Get a glimpse of her argument and persona in this TEDx talk . White is the expert we need to help make sense of and face this crisis.
On average, African-American, Hispanic, and LGBTQ agers have much less wealth to fall back on in later years than do whites. As parlous as the finances of a large percentage of lower-income whites are, the picture for most minority and LGBTQ households is much worse. Here are some useful articles:
- From the editors of Black Enterprise: African-American Economics: Real Facts
- From Rodney Brooks in Next Avenue: The Retirement Crisis Facing African-Americans
- From PBS, more on the racial wealth gap and our inability to save overall for retirement: The Numbers You Need to Know about the Retirement Crisis
- Given these dire statistics, finance writer Kerry Pechter asks, “Why So Many Blacks in Retirement Income Ads?” in Retirement Income Journal.
- In Did the Civil Rights Movement Fail? Kerry Pechter mines data from this important McKinsey report: The Economic Impact of Closing the Racial Wealth Gap (or use this link to the electronic version), which shows that closing the racial wealth gap will greatly boost the overall U.S. economy.
Some resources regarding finances
- Seniors Resource Guide is a generous, easy-to-use source of information about non-profit, governmental, and for-profit help for elders in need and their care partners. This well-organized summary is a great place to start.
- HELPS is a nonprofit law firm and 501(c)(3) charitable organization. We serve senior citizens and disabled persons struggling with debt.
- SAGE's tagline is "Advocacy and Services for LGBTQ Elders." Home of the National Resource Center on LGBT Aging, SAGE is the oldest and largest organization of its kind. With 30 affiliates across the country, SAGE is able to provide personalized attention to thousands of LGBTQ elders monthly.
- Diverse Elders Coalition (DEC), formed in 2010, advocates for policies and programs that improve aging in minority U.S. communities.
“RETIREMENT” LIFE PLANNING
Whatever our financial reality, we all can benefit greatly from a life plan for our post-working years: a plan for how to fulfill our purpose, to continue (or begin) to contribute in a way that makes our hearts sing, to love our lives, as difficult as they might be in some ways.
I enjoy facilitating small groups of people who are beginning to think about how to transition out of their current work roles and into new life roles, with or without paid work in the picture. If you’re interested in starting a group, contact me! Meantime, here are some resources to get you thinking.
Excellent retirement books & websites:
- Helen Dennis, Project Renewment: The First Retirement Model for Career Women
- Robert Laura and Timothy Drexler – Naked Retirement: Living a Happy, Healthy, and Connected Retirement
- Sara Zeff Geber, Essential Retirement Planning for Solo Agers
- Dorian Mintzer and Roberta Taylor – The Couple's Retirement Puzzle: 10 Must-Have Conversations for Creating an Amazing New Life Together
- Jeri Sedlar and Rick Miners, Don’t Retire, Rewire! 5 Steps to Fulfilling Work That Fuels Your Passion, Suits Your Personality, and Fills Your Pocket