The title of this article resulted from a pundit appearing on Fox Business (attached article) and it might have pushed some of you over the edge. It nearly did me … I mean it really pissed me off and it seemed to have done the same to many on social media too.
People aren’t saving like they should and I get that … we all get that. But these folks are being given airtime to push the wrong message. It’s not the message people need or want to hear.
“What do people do when they retire? You know, how do you spend a day? I mean, is bowling that interesting? Is fishing that interesting? I happen to love my work. Why would I want to stop it? It’s not like it hurts.“
Goodie for you, Mr. Luskin, for loving your job because you are in the minority. And for many people that work, Mr. Luskin, their job does hurt them. Life guards, coal miners, police officers, trash collectors, cooks, landscapers, and many others are injured everyday on the job. Several are working multiple jobs, which hurts the family unit and seriously wears a person out.
Most people don’t love or even like their job. We have a job because it earns a paycheck. A paycheck is earned to feed, cloth, and house us and our family. We may like the people we work with but most don’t like/love their job.
But are we seriously trying to change the narrative such that it’s now desirable to “embrace” our ability to continue working until we die? These folks must be out of ideas or think we’ve given up. That’s not what we need to hear. Today’s worker needs encouragement, financial strategies, honest information, education, tools, processes, and solid policies that enable retirement.
“It is part of your destiny to be productive and to work,” Luskin said.
I call B.S. on that message. People will do what they need to do to survive. If that means working until 75-years old then so be it. But the message should not be to embrace it because we have a destiny to be productive and to work. Personally, I want something more out of life.
“Control Your Own Destiny or Someone Else Will”
This quote by Jack Welch says it all for those of you on the brink of losing faith that you’ll ever retire. Working until you drop dead should not be an aspiration or an accepted way of life – I’m hoping you put up a fight to try and not let that happen.
To keep it simple, I see only 3 options when it comes to retirement. The folks on TV are pushing Option 1, to make it acceptable to work until you die.
- Keep working until you die
- Retire in poverty
- Change your destiny now (regardless of age)
OPTION 1 – Keep Working
Like Mr. Luskin, some people actually choose to keep working. A few will because they like what they do and some will because they have no choice. Like my dentist neighbor, he has chosen to continue working. I don’t understand it and that’s ok because it’s his life. Given that his wife doesn’t work, I assume he just likes to stay busy and likes being a dentist.
I also know people that have to keep working. My sister is likely going to work until she just can’t function anymore. At that point, she’ll probably be just above U.S. poverty levels.
She is 60 years-old, has lots of consumer debt, a mortgage, continues to spend, and has little savings. She was actually mad that her state job forced her to take 10% out of her paycheck to put into a retirement account. For her, I say it’s her choice and I can only warn her so many times.
Many people who work until much older will usually retire (transition) into near poverty levels. These people still have a chance to choose a different path and transition into a retirement that is more comfortable.
It may not be a life of luxury but it will be better than poverty income levels. They need to change their ways now. Even my sister still has a chance if she starts focusing over the next 10 years but she needs to start now.
Option 2 – Retire in Poverty
The poverty rate in the U.S. is just over 12%, which for a two person household is $16,910 in 2019. That’s not much and it’s not for me and I’m choosing not to take this path. Sure their are some programs for people in poverty – for example, healthcare and food stamps – but this isn’t aspirational for people in retirement.
For some reason, even people who border on poverty are taking their social security at 62 years-old even though they don’t have enough savings. If you listen to Mr. Luskin from the Fox Business interview, these people should never retire because their jobs don’t “hurt” them. They should feel lucky or “blessed” to fulfill their destiny and keep working until they die.
I assume people that retire at 62 in near poverty conditions are tired of working or can’t work anymore. Perhaps they got laid off from their $50,000 in annual pay job and can only find work as a $10,000 in annual pay Walmart greeter.
Some have chosen their path (i.e. they consumed too much and didn’t save) and some can’t work anymore. Either way, this is where they are. Maybe they’ll go fishing or bowling even though Mr. Luskin doesn’t think those are interesting activities.
Option 3 – Change Your Destiny (Now!)
In April, I outlined my 10 steps to take (You Are On Their Retirement Clock) to get your retirement / financial affairs in order. If you are over 60, then use the list as a buffet. The order of the step’s might need to be tweaked to fit your unique situation.
My first step (track expenses) still applies though. How can you retire if you don’t know how much you spend? Again, if you are over 60, the big question is how much money do you need in 10 years to be more comfortable in retirement? Being “more comfortable” must be defined by you and then that becomes your target.
If you save $250 monthly for 10 years at a 6% return, then you’ll have an extra $41,000. $400 saved per month will provide an extra $65,000 in retirement. If you reduce debt and save more then you will have changed your destiny. Heck, if you can do like I’m doing and become a hyper saver think what saving $5,000 per month will do. How does an additional $820,000 sound? It can be done!
Remember, I was turning 50 and my net worth was only $115k and 6 years later it’s $750k and growing. After 6 years, my portfolio is nearing $500k and in another 6 years it will total nearly $1.3M and we’ll have no debt. I woke up and took charge of my own destiny and so can you.
Final Thoughts
Control your own destiny starting today. Get mad or scared … whatever will get you to make some changes. It won’t be easy but it will be easier than working until you die or retiring in poverty.
I don’t want to become a dependent of government programs or of my children. As stated in one of my May articles, do something today to jump start an improved future. Just do something to start, which can be the hardest part.
The steps you take now could provide a larger cash cushion to handle unexpected expenses that do pop up. Those steps could also build a nice dividend portfolio that kicks out another $10,000 per year. Anything you do is better than not changing your spending, debt building, non-saving behaviors.
Don’t let someone or something else control your destiny … be your own person. If you choose to retire in poverty then bless you. If you choose to work until you die then bless you.
All I ask is that you don’t become hopeless. All I ask is that you impact your future. If I had accepted my fate or “destiny” when I was 50 then I’d be just another statistic. I will not be another retirement failing statistic.
Thanks for reading!
Mr. TLR