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The older I get, the more I like hearing people say that 40 or even 50 is the new 30. But, what about age 65 being synonymous with retirement? Do people even consider retiring anymore? I read an article by Blake Ellis in CNNMoney recently that suggested that as far as retirement goes, 80 is the new 65 because business and finance have entered tough times. That might sound crazy, considering that many people don't even live to be 80, but the cold reality is that many Americans are in no position to retire.
Work Till I Drop
My pre-2008 motto of "shop till I drop" might have changed, but I refuse to change it to "work till I drop." That is not only depressing; it's bad for the economy. I might be too tired to carry on until I'm 80 and beyond. Plus, if I -- and my peers -- work until we drop, what is to become of all the 20-somethings who need to start their careers? Will there even be enough jobs to go around? There has to be a better way.
Know What You Need
People need to understand how much money they need to have saved up by the time they reach age 65 or whatever age is a suitable retirement age. It's also important for couples to discuss their retirement goals together and to be on the same page with them. I used various online calculators to help me determine my number and to give me a concrete goal to work toward. I don't want to just have the essentials in my golden years; I want to keep my standard of living.
Considerations
Online retirement calculators told me all sorts of things that I never really thought about before. They made me consider what my retirement age would be and what age I could work until if I had to. They also let me consider whether I want to retire with 80 percent of my income or whether I could get by with less. A valuable feature of one calculator even told me how likely I would be to reach my goal. This was based on what would happen if I continued on my path. I assure you that the calculator was not Miss Cleo of infomercial psychic fame.
Making Adjustments
The first time I used a retirement income calculator, the number I got was one that I could not imagine occurring. I knew that I would have to make some changes in my life so that I would be successful in reaching my retirement goals. By making some lifestyle adjustments and by tweaking my retirement expectations, the calculator finally gave me a number that I considered doable, and I became confident of reaching my goal. I also learned that checking my retirement health is not a one-time occurrence. I need to do this every year or so to keep on track.
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