#retirement bust YOU THOUGHT YOU WERE ALL SET, BUT …

History may judge the years 2007 to 2012, give or take a few years on either end, as the retirement bust years.
People not only lost jobs just before they were about to retire, but also their pensions shrank.
People who thought they were all set for retirement, with a nice, promised pension, got a rude awakening. The monthly benefit on their retirement documentation shrunk considerably.
It was a combination of the economy tanking, and companies contributing less, if anything at all, to their retirement accounts. Added to that, the stock market , which supports most retirement accounts, took a big tumble. The bottom fell out of thenNet worth of everything – companies and individuals.
Even the savviest investor could not prevent what happened in those years, short of taking his money out of the financial markets ahead of time. Any investor who withdraws completely is probably not that savvy. Savvy investors take the ups and downs of the market as an expectation, though no one expected what happened in those years.
So the question becomes not whom to blame for the mess. There’s plenty of blame to be spread around among Wall Street, government and, yes, individual decisions. But blaming wastes energy that should be focused on recovery.
We all have had to rethink retirement. Some of us have told ourselves we have to work until we die. Some of those folks may have other alternatives, but they are not seeing them.
Certainly, some of us have said we have to work past the age we thought we were going to retire. That’s fine if you are in good health personally. But don’t think for a minute that your job will be there for as long as you want it. Companies reorganize drastically and often. The younger generation of workers, when they retire, may brag about how many reorgs they survived, just as the older generation is thankful for the steady work they had.
Speaking of young people, they may want to think twice about ASSUMING they will survive every reorg. It’s great to believe, or even be told, how good you are at what you do and how your employer cannot possibly live without you.
But, you can’t always see into the future. The world changes quickly. Companies are constantly looking at ways to work more efficiently. Lots of good people have lost jobs they expected to have for as long as they wanted to work.
How do we avoid the instinct to cast blame and rethink retirement? First, work on you. Make sure you have a good and optimistic attitude. Remember, those who innovate are usually optimists. It’s tough to see the future properly without believing that all, eventually, will be good.
Secondly, think about the things you DON’T like to do – things that make you “uncomfortable,” or so you believe. Give them a try. Then, try them again, and again etc. This will take you out of your comfort zone, where you may have to go, eventually, to survive.
Thirdly, don’t be afraid to look at something different. The people who lament that they thought they were all set, are many of the same people who tell themselves, “oh, I couldn’t possibly do THAT!”
There are many ways to fight this. For one of the best, visit www.bign.com/pbilodeau. If you leave your comfort zone to look at something new, you may lose the instinct to cast blame for your troubles, and find a way out.
This may not be your dad’s way to retire, but the world has changed. We need to be part of our own solutions, rather than focusing on how we got into trouble.
Think of it this way: the federal government bails out some companies because innocent people would get hurt if they didn’t. But they won’t bail you out as an individual if you get hurt. You have to bail yourself out. You might not only bail yourself out, but prosper in many ways in the process.
Peter

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