Conflicting articles on retirement

[RosieTR]

I was amused by MSN posting two conflicting articles in the same little sidebar. One is on how everyone will have to work until they are older before retirement:
http://money.msn.com/retirement/how-high-will-the-retirement-age-go

The other is about how you shouldn't count on being able to work longer in order to beef up your retirement:
http://money.msn.com/retirement/dont-count-on-working-longer

<shakes head> Gotta love the retirement advice on msn.

[Blackdog Lin]

Hilarious, them being such conflicting articles.....and a subject newly dear to my heart. I'm going (early) with a pension (very soon). I hope to model the lifestyle of members here such as Spartana, living well living simply.....

[San Onofre Guy]

I used to get sucked into every article about retirement that I saw, but when I realized that most articles are pushed by firms selling retirment plans and emphasize how much you need in the plan versus the possibility of changing your lifestyle I cut back on my reading. Everything one needs to know about retirement planning and security can be found on these threads!

[try2bfrugal]

I used to get sucked into every article about retirement that I saw, but when I realized that most articles are pushed by firms selling retirment plans and emphasize how much you need in the plan versus the possibility of changing your lifestyle I cut back on my reading. Everything one needs to know about retirement planning and security can be found on these threads!

I agree entirely. Most articles are written by people who pander to the investment companies and other advertisers. So the answer on how to retire is often along the lines of work 40+ hours a week until you are 80 instead of exploring lower cost of living options like multi-generational housing, getting a few roommates like college kids do, build your own tiny house, or give urban homesteading a try.

Most retirement articles base retirement income needs on former gross income. Former income is irrelevant in how much you need to live when you are retired. It is retirement expenses that count. If someone made $1M a year when they were working it doesn't logically follow that they will need 80% of that or $800K a year to live in retirement.

[Blackdog Lin]

Oh yes, you're both right. I've decided to ignore almost all of what the "conventional retirement planning wisdom" consists of these days, and go with a "Simple Living Forum" idea of what retirement finances can be. My ideas and plans:

(1) Know exactly how much money you're living on. Know what could be cut back and still be okay. Know that the retirement incoming is enough for this. (I have a list of things we could give up and not notice it much - it's my personal income "inflation safety net".)
(2) Place savings safely (it's such a personal decision!). Understand that safety means giving up returns, which is the way I've decided to go. Two-thirds of retirement savings in local-bank IRAs, earning miniscule returns; one-third in a safer (gov't bonds) area of the federal TSP. Earning slightly above miniscule returns.
(3) Have a plan to have fun with being even more "simple". I am so looking forward to a clothesline - and the time to deal with it. I am looking forward to learning to bake bread and other bread items, and save money doing so. I have a plan in mind, when DH says we'll go out to lunch when we go to do our bi-weekly shopping in the neighboring town, to present him with my home-packaged picnic lunch that we could enjoy in the very nice city park.
(4) I have several ideas for money-making, if it becomes necessary, ranging from part-time jobs to seasonal jobs. I am lucky that in my rural part of the midwest there are lots of possibilities for bring in more income, if you're willing to put in the work/hours and don't need fulltime work. This is my buffer plan.
(5) I think inflation will be the butt-kicker. I hope I'm wrong, but.....don't think so. I hope I've built in enough inflation protections into my plan to get us through the next 30 or so years.

Well, I'm doing it anyway. Wish me luck.....

[RosieTR]

I agree, these forums provide way better advice than a couple of articles from some large media conglomerate. I just thought it was very amusing that they had the two articles lined up one over the other, that essentially gave directly conflicting advice. IMO, plan for the worst, hope for the best. Planning for the worst=figuring out your plans early, readjusting them frequently, and saving a whole lot more than you would otherwise be encouraged to. Who says saving 10% is the magic number? It may well be for some people in some situations. Others maybe need much more or and handle it with much less (and possibly have to). I also agree there is a huge lack of creativity in these types of articles. Work longer or stop working altogether. Never any ideas like sharing your home, growing a significant portion of your own food, investing in something unconventional, or just dealing with a lower standard of living. That "lower standard of living" might mean spending a couple hours in the library using their computers or wifi rather than paying the cable company for it. Eating more beans and less meat. Wearing your tennis shoes for 10 years instead of one.
Fact of the matter is, you don't know what life will throw at you personally, nor what the world will throw at your generation generally. If I retire at a traditional age, it'll be in about 30 years. Will the US be prosperous, or will the "Great Recession" look like the "good old times"? Will I be struggling to learn Chinese, Arabic, Spanish, Portugese, Afrikaan, German? Or will I be incredulous to think back on the problems with energy and climate change we were having in 2012, or think my worries about future health care costs seem quaint? Personally, I'm saving a bunch but not to miserliness, and trying to balance keeping up with technology while maintaining some basic skills.

[Wildflower]

I find alot of these retirement articles humorous to say the least. DH and I retired early at age 50 due to my health problems, and the bankruptcy of the company he worked for. We are currently living on his very small pension until SS kicks in in a few years. We definitely didn't get to accumulate the nest egg that we have been told is necessary to live well in retirement, but we are living well!

I started reading the SL forums over 10 years ago and I learned so much. At that time we worked hard to pay down our debt and it has served us well. When crisis time hit us we had no debt whatsoever and our small home was paid for, so we knew we would survive, and we have done fine the last 5 years. We have a large garden every summer and can the surplus, eat little meat, conserve energy in our home and recycle everything possible. We wear the same clothes and shoes until they wear out, but we always look clean and nice in my opinion, albeit we are old hippies. ;) We make good use of the local library, and free exercise for us is taking our dogs for long walks daily, although lately I am in a wheelchair more often than not due to my spinal condition. But we are happy, and smelling all of the roses along the way. We consider it a challenge to survive on our small income and awake everyday to meet the challenge! DH is a talented woodworker and sells the beautiful furniture he makes. I do everything I know to save us money, from baking my own bread to mending our socks. I feel like a pioneer woman some days and I like that feeling....