Putting Off Retirement?

I read an article in the March issue of Newsweek written by Daniel McGinn and Temma Ehrenfeld that addresses a baby boomer issue facing those of us who may have thought retirement was just around the corner only to discover that it may have to be put off a bit.  Retirement Postponed  tells the story of some unlucky baby boomers who had expected to quit work by now but discovered they couldn't afford it. Based on current economic conditions it seems as though some boomers are electing to stay on the job. The housing bust, tumbling stock portfolio's and the weakening economy are being blamed for this crisis now facing us baby boomers on the brink of retirement. 

They say that timing is everything and it's so true. I invested in a can't miss real estate deal in 2006 that has turned my retirement dreams upside down along with my home's value. To say this didn't work out as planned is a mild understatement. Similar situations has baby boomers concerned (panicked) about just when they can pull the plug. The Newsweek article sites several examples of boomers who were counting the days till retirement, people who worked decades and saved diligently only to discover their dream of selling the house and downsizing to that sun-belt condo has to be put on hold.

That's easy for someone to say but hard to digest when you are a baby boomer who expected their investments, 401 k's and savings to carry the day once they retired. They say that many boomers intended to work longer anyway but not this boomer. Unfortunately I must join the ranks of those unfortunate boomers who must keep a stiff upper lip and work on. Our last recession, March to November 2001 had 10% of those who had already retired returning to the work force. I don't think I am emotionally equipped for that sort of let-down. I think what we are in now, call it recession, downturn, whatever, it's going to be a while before it gets better and only time will tell as to how it will effect each individuals retirement plans.

Delaying retirement but not the gratification

The Newsweek article had some suggestions from a retirement planner with T. Rowe Price, Stuart Ritter. Mr Ritter suggests that while you might not be able to retire now you can enjoy the gratification of retirement while working. He says if you had planned on taking lots of cruises in your retirement, book a two week cruise now and then go back to work afterward. Continue to explore ways to keep you motivated that will have you returning to work fresh and ready for more labor. That might be a good idea for some but overseas travel with all the security hassles and the falling dollar have me thinking about a different approach.

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.