Friday, November 13, 2015

Retired Baby Boomers

Continuing from yesterday, the social security crisis is expected to hit, when the baby boomers retire.

Based on the baby boomers I know, it's about half and half. Half of them are retired. Half of them can't retire, because their savings are too small, social security isn't enough of a safety, or they're dealing with their parents. Either the parents are moving in with them, the parents are dying and have huge hospital bills, or they're in elderly care. Either way, the boomers are paying a lot to take care of their parents, so they can't retire yet.

I feel bad for these people. They expected to have a long, healthy retirement, by themselves. But now they're reverting back to the retirement plan that has been in effect for the majority of human history: work until you die, or until you're so frail you have to move in with your kids.

With the boomers that have retired, I'm told that the majority of them retire as early as possible, instead of staying with their jobs until they hit the "maximum benefits" range. Granted, if you don't expect to live more than ten years, there's no reason to work an extra ten years to ensure the best retirement possible. But if you live to be 100, you'll probably regret not working a little longer in your 60's.

Katie and I have a retirement plan that centers around a 2050 target date fund, but ha ha, no way are we actually going to be able to retire by then. Not unless we have a relative who wins the lottery, then dies right after signing us into their will.

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