By Thomas Koulopoulos via inc.com Article
It’s Time to Say It: Retirement Is Dead. This Is What Will Take Its Place
“We get old when the weight of our memories and regrets starts to exceed that of our dreams.
When it to comes to the topic of retirement, the old rules no longer apply. In 1935, when the Social Security act was passed, the age of retirement was set at 65. At the time, the average life expectancy was 61! Today, average life expectancy is just under 80 years. That one fact speaks volumes to how outdated our views and mechanisms for retirement are. …
Advances in longevity are making supporting retirement for another 20 to 30 years impossible for 90 percent of all U.S. workers.
… The numbers are startling: Thirty-four percent of workers have no savings whatsoever; another 35 percent have less than $1,000; of the remaining 31 percent, less than half have more than $10,000. Among older workers between 50 and 55, the median savings is $8,000. And this is total savings, including retirement accounts.
Contrast that with the fact that experts say you should have eight times your preretirement annual salary saved in order to retire by 65 and continue a reasonable quality of life, commensurate with what you have become accustomed to.
The Retirement Myth
… Advances in longevity are making supporting retirement for another 20 to 30 years impossible for 90 percent of all U.S. workers, whose only source of income is Social Security, which only pays from an average of just over $1,300 per month to a max of just over $2,600 per month. …
Even if you’re lucky enough to be among the 20 percent, who have a $1 million-plus net worth and enough saved up to retire, there is some evidence that the classic notion of retirement may actually be harmful to your health.
The answer is absurd, and it’s at the core of every failed strategy to paint the future with the same worn-out brush we used to paint the past.
A recent Guardian article about research on aging and retirement cast an interesting light on the topic. According to the article, ‘[Research conducted on] 2,956 people who were part of the Healthy Retirement Study funded by the National Institute on Aging in America … found that healthy retirees who worked a year longer (over the age of 65) had an 11 percent lower all-cause mortality risk. Even the unhealthy group reduced their likelihood of dying by 9 percent if they delayed retirement.’ An analysis on the study was also published in the Harvard Business Review.”