Nowadays, we’re faced with a number of retirement challenges, with only a select demographic of elderly people able to retire comfortably, solvent, and never having to work again. The standards of living, the economic realities of business, and stagnant working-class wages mean that many workers may never get to retire.
Over 40% of all people who expect to retire will have only saved about $10,000 for their retirement expenses. Unfortunately, the average retiree spends about $50,000 a year to satisfy their standard of living expenses. So, $10,000 a year just won’t cut it. Further, social security only offers about $10,000 in annual benefits on the average.
Many companies and employers do not offer retirement savings plans or pensions. Those that do usually require employees to pay into such plans themselves. Many workers are saddled with student loans and credit card debt. They don’t own homes, property, or appreciable assets. Some statistics show that the fastest growing workforce of the future will be elderly people aged 65 to 75. Or older.
It’s a stark reality, but it’s reality. Most people will never be able to retire, let alone even consider early retirement. Significant percentages of millennials and baby boomers may end up working for a living for the rest of their lives. However, you know what? That may not be a bad thing at all.
The Cost of Retirement Age Health Care
The older we get, the more likely we are to become ill or develop health problems. So, retirement plans must be strategically calculated to anticipate standard of living costs. You must calculate how much money you spend every day, month, and year to ensure the longevity of retirement. The largest retirement expense could be health care.
A retired couple who are 65 and over can expect to pay upward of $280,000 on their health care needs throughout retirement. Imagine that. Over a quarter of a million dollars allotted for health care needs alone. Unless you save half a million dollars or more for retirement, you may need to work part time or in a semi-retired status – just to take care of your health care needs as much as possible.
It May be Healthier For You to Work
What do you think of when you hear the word, “retirement?” Relaxing on a beach? Traveling the world? Spending quality time with relatives and friends? After you do all of those things, at some point, you’ll return home. Then what? Yes, you have worked all your life. If you want to retire, it’s your right. Yet, what will be your purpose? What will you do?
The truth is, it may be more physically and emotionally healthy for you to work for as long a possible. It doesn’t benefit most people to sit at home, do nothing, and expedite declining health. Not to mention the stress and worry that accompanies ensuring expensive medical treatment bills in the future. When it comes to your health, it might be more beneficial for you to stay active, either with hobbies, volunteering, or part-time work.
A lot of retirees become depressed or anxious because they suddenly go from working every day to doing mostly nothing. A work life is also an identity. Plan when you will work, engage in hobbies and other activities to stave of anxiety and depression.
You Might Not Retire But That’s OK
No. You may not be able to ever retire. Not on your own terms anyway. Yet, that doesn’t have to be a bad thing. You can continue to pay your bills and feel a purpose in life, and possibly manage things like healthcare. For many people, it’s the best option out there.
Are you planning to retire? Share your thoughts with us below!