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BYOA: Retiring is gone, long live the transitional lifestyle
October 18, 2019 by Matt Suwalski
The world has a funny way of changing. Gone is the time of rotary phones, VHS, Betamax, the walkman, and bell-bottom jeans. Is retirement the next to the societal process set to fade into the existential process of time?
As time ticks on, more Americans are unable or unwilling to “retire” which by definition is the process of “withdrawal from one’s position or occupation or from active working life.” From mental health and physical perspective, it becomes more advantageous for older Americans to stay active and keep working to main their sanity and physical health. Thus, enters the process of a “transition lifestyle” or “semi-retired” status, which indicates a process to cease one’s primary job or occupation and transition to partial working status.
From a financial standpoint, these topics revolve around a troubling position that identifies a troubling trend of American’s being less financially prepared for retirement. According to a statement by the Government Accountability Office data in 2016, that half of Americans, 48% of 55 and older have no retirement savings, down from 50% in 2013.
A shift in perception and acceptance has lead to a Baby Boomer generation who has resigned themselves to believe that the path forward includes working in some form or fashion in a part-time or full-time capacity well into their 70’s because of this lack of retirement.
This has a serious impact on the function of the American work environment because of the transitional nature of job knowledge and skills. How can we replace the largest generation of American workers if they are not planning to retire? According to the 19th Annual Transamerica Retirement Survey of Workers by the Transamerica Center “69 percent either expect to or already are working past age 65 or do not plan to retire.” This will have a drastic impact on the make-up of the workforce well into the foreseeable future.
Which brings us to our point that the concept of retirement is slowing being obsolete and being replaced with a transitional lifestyle that allows “people of retirement age” the ability to rely less on their financial savings, find ways to supplement health care costs and stay physically active.
Reference: https://www.gao.gov/assets/700/697898.pdf
Reference: https://transamericacenter.org/docs/default-source/retirement-survey-of-workers/tcrs2019_sr_what_is_retirement_by_generation.pdf
Filed Under: General Investing, Retirement Accounts Tagged With: Baby Boomers, Long-term Planning, Retirement, Transitional Lifestyle
BYOA: New 2018 Contribution Limits
January 4, 2018 by Matt Suwalski
401(K)s, 403(b) & 457- Annual contribution limit is $18,500 (a $500 increase) 401(K)s, 403(b) & 457 catch-up - Annual contribution limit for 50 or older $6,000 (remains the same) or $24,500 annually SIMPLE retirement accounts - Remains … [Continue reading]
Filed Under: General, General Investing, Retirement Accounts Tagged With: 2018, 401K, 403(b), Contribution Limits, Phase out ranges, SIMPLE Retirement Accounts
BYOA: 7 Financial Tips for 20 Somethings
Create a budget - One of the first things you can do to educate your on how to develop a personal budget. You can utilize free resources like Mint.com or Personalcapital.com. This can help you visualize your accounts and spending. This is a first … [Continue reading]
Filed Under: Tips Tagged With: 20 Somethings, BYOA Tips
BYOA Question: Salary Negotiation
September 16, 2017 by Matt Suwalski
BYOA Question: "I was offered a job in an entry level position after college/grad school. Should I try to negotiate a salary from my first job offer?" Short answer: Yes, but how you ask matters. Long answer: When ever you are given a job offer … [Continue reading]
Filed Under: Questions Tagged With: Salary
BYOA: Ben Franklin Quote
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