#SuzeOrman #WorkUntilAge70 #retirement
Suze Orman has made a fine career of giving retirement and other financial advice.
But when she advises people to work until age 70, Wes Moss, who writes the Money Matters column in The Atlanta Journal-Constitution and also has a radio show of the same name on WSB AM, begs to differ.
Moss discussed the matter in a Nov. 7, 2017, column.
Certainly, medical advances and the like have made living longer possible. Some folks may even enjoy their work to the point of never thinking about giving it up. Others may believe that the longer they are able to keep working, the better off they will be financially.
Moss points out that the latter is pretty much Orman’s philosophy. He quotes an old joke in financial circles: “How do you never run out of money for retirement? Work until you die,” Moss writes.
In Moss’ mind, perhaps the most important reason for not setting 70 as a retirement age is that “you may lose the sweet spot of your retirement – the years when you are healthy and active enough to live out your post-career dreams to the fullest,” he writes.
Certainly, the Social Security Administration has inched up the “full retirement” age to 67 from 65, where it was for decades. But Moss points to a Bloomberg News article that says Americans are retiring later, dying sooner and are sicker in between.
Here’s something else Moss points out: companies largely do not want older workers around. Younger workers are generally cheaper. So, even as workers approach middle age, they become vulnerable to being forced out of their jobs for one reason or another.
If you are among those who are nearing retirement, and don’t have lots of money saved, take heart. There are many ways out there you can make money in your spare time, say, a couple hours a week, without taking a second W-2 job, or working overtime (if available) in your first job. To check out one of the best such vehicles, message me.
In short, unless you really love your job, think about retiring as soon as you are able. If you can foresee your job going away before you want it to, take measures to soften the blow when it comes. If you do the right things – spend less without depriving yourself, save more money, invest well etc. – you might even be able to walk out of your job with a smile.
As Moss says, you shouldn’t make it a goal to sacrifice the best years of your retirement by working those extra years. And, once you do retire, you shouldn’t waste time sitting at home, and not venturing out of your comfort zone. Have dreams. Fulfill them. Retire with no prejudices, no pretenses and no burdensome obligations.
That isn’t to say that there are some jobs that are so great, you don’t want to give them up unless you have to. But, chances are, no matter how good you are at what you do, eventually your employer is going to want you gone.
If you’re lucky, when your employer wants you gone, he or she will offer you a package to leave. If you get an offer like that, remember that few people who take them ultimately regret that decision. If you are being paid to leave, the message you should hear is that the employer want you out.
So, if you are a Suze Orman devotee, remember that not everyone agrees that one should work until he or she is 70. A better philosophy might be this: when is the SOONEST I can retire? Once you’ve determined that, think about not only how you are going to pull it off financially, but also what you will do with your new-found time.
Work, dream, save and retire.
Peter