I ran across this article on MSN about retirement planning if you're broke.
There were five main suggestions in the article:
- Postpone pulling the trigger on Social Security payments. As in, retire later, so that your check is larger and has more room for growth.
- Take advantage of home equity. For reverse mortgages, and an old-age emergency fund.
- Bankruptcy. This protects your remaining assets, but at the expense of knowing that you've stiffed your creditors.
- Downsize. Fewer expenses means that whatever you have saved up will last longer.
- Get retirement-specific financial planning advice. In contrast with advice for someone younger with more time.
I have a suggestion. (It's not advice, because, well, I can't do that.) But it is something to think about.
What about planning to not retire? Retirement has nothing to do with age, and everything to do about money. Retirement, if you so choose, is an option largely if you've planned ahead, and if nothing really devastating financially has come your way. (The latter isn't always within your control, of course, but the lack of money doesn't change just because life dealt you a two-seven off-suit for hole cards, unfortunately.) So, if you have no money, shouldn't you be considering no retirement?
The mid-70s lady who cuts my hair
My hair is fine, and pretty much straight as an arrow. Which means that any gaffe sticks out like a sore thumb. (One of my more irritating moments was when I had to have my hair cut twice within a couple of weeks. My fiancee didn't want our engagement pictures to have a crappy haircut in them forever. Twenty bucks well spent, I suppose, but grrrrrr … )
I found my current hairdresser while staring down a long waiting list for my previous favorite. (She was very meticulous.) I was looking really shaggy so I took a chance. She was fast. More, she was confident. I've had hairdressers actually ask other hairdressers for help when cutting my hair. Apparently it's fairly tough to cut. But Carol didn't need any help.
Carol is in her mid-seventies. She has several old-age things going on that make it extra challenging for her to go to work. But she does, and does so nearly a decade after the point she “should have” retired.
I fully expect that one of these time I'll show up for a haircut on some weekend, ask where Carol is, and find out that she died. I don't see her quitting.
She's not broke. But I don't sense that she's comfortable. Carol is doing what she has to do.
She's working during her retirement years.
I don't continue to have her cut my hair just because I think she needs the business. I continue to go to her because she's very good at what she does. Might someone be better? Sure, but why take the chance when I know that I could get much worse?
Things do get harder as we age (I'm finding this out already!) but that's life. And people do still take experience into account, so having some years can be an advantage.
I hear what you’re saying but for a lot of jobs, I think it just gets more and more difficult as you age. People who do manual labor will find it harder and harder as they get older. Even people who do high white collar jobs might find it increasingly difficult, as people who get older tend to slow down and also not stay as in tune with technology. I know many are the exception but for those who fall into these categories, work will become less and less enjoyable and working past a certain age would just make for an increasingly poor quality of life. I understand what you’re saying but from a practical standpoint, it’s a tough sell across the board.
Thanks for the thoughtful comment.
I do agree it gets harder. I’m already seeing that. I already wish that I had pushed harder when I was younger to get a side income going, and I’m only 40.
But if you run out of time, you run out of time, and there’s no going back. If it’s hard and less enjoyable … well … too bad? Sorry?
As far as technology, that’s ongoing. The longer we’re engaged with learning new things, the slower the decay will be, all other things being equal.
Maybe Carol is working because she wants to? Some people continue doing their career because they have no other outlet. Many hairdressers just cut down the number of days or hours as they get older.
Perhaps, but we also chat a lot, and I don’t sense that she could quit if she wanted to.
I’d tip her more than a younger person, all things considered. Working has to keep her connected, which is positive, but being on her feet all day might be tough.
However, I’ve met people who retire too soon and who are not thriving personally, even if they don’t need to work for money. Also, age is somewhat relative. There are old 30-year-olds and young “seniors.”
True all around. (I do try to tip what I think is generously, for what it’s worth.)
I certainly hope if I want to work at that age it will be because I want to, not because I have to. There is apoor little old man who does janitorial at the Rec Center because his wife divorced him and took all the money. I feel really sorry for him. He seems miserable. On the other hand, my neighbors are 70 and still work full time because they want to. Big difference for sure.
Yeah, divorce can devastate people financially if people are out for blood.
I know I plan to keep writing for as long as someone will let me do it! My husband, on the other hand, will definitely be retiring; he’s in law enforcement, and physically, his department just doesn’t like to have officers on the street once they reach a certain age.
Writing is a perfect money-maker to continue into retirement. Good point about active-duty officers, though — but maybe there’s a transition that can be made that uses that as a springboard?