The “Foolishness” of Not Preparing for Retirement

The “Foolishness” of Not Preparing for Retirement

All those boomers who can’t afford to retire may not be the losers the “experts” make them out to be.  Another big study just came out reporting that millions of people on the brink of retirement don’t have the money saved to pull it off.   That may not be a bad thing.

Perhaps it’s the people making the predictions who need to stand back and take a better look at what’s going on. If it was all that important to those people to be able to retire, they would have prepared for it. But even before the financial meltdown of the last few years, baby boomers were not seeing the retirement years as the extended vacation it’s being painted as by financial planners and real estate developers.

In a study of over 3000 boomers in 2005, the Met Life Foundation found only 17% wanted to never work for pay again once they retired. Six percent wanted to go to work full time at something else. Seventeen percent want to work part time, 16% want to own their own businesses, and 6% want to do “other” things like join the Peace Corps.

For those of you who’ve been keeping track of the arithmetic on this, that leaves 42% still unexplained. What do they want to do? Cycle in and out of work. What better way to be sure you do that than to not have the money to “stay” retired? Many who do have the money do that same thing when they retire simply because it’s more enjoyable.

As a nation, we would be wise to look at how to use this immense temporary talent pool effectively instead of lamenting the “unretireability” of the masses. If we actually put some effort into using the potential of this segment of the population instead of shaming them for not trying to be what they never wanted to be in the first place, we would all win.

Economic boon
People who are actively earning are more willing to spend money than those living on passive income–even if there’s plenty of passive income involved. Even wealthy retirees adopt frugal behaviors, partly because it’s a way to demonstrate competence. If we gave these people the chance to work even a quarter of the time, the  loosened purse strings would have a startling positive effect on the economy.

Government cost containment
People who are engaged get sick less. They don’t dwell on their health problems because they have more interesting things to do. That means fewer trips to the doctor, the hospital, and to the medical lab for Medicare to cover. Let these people work some of the time, and they will take better care of themselves simply so they can keep on doing that.  “First you retire and then you get sick” is true way too often.

Social hat trick
Work is one of the best sources of self-worth on the planet. When people get paid, they know they are good at something and that translates into a more positive attitude overall. A postivie attitude has been linked to better health, plus they are more effective contributors to the common good because they believe they can still make a difference.

In addition, getting retired workers involved on a part time basis can cut down on the workload of those in their prime work years who are stressed into illness and poor performance because of there is simply too much that they are expected to do in how we are going about it now.

Third, putting retired talent in the same place as the newest generation of workers will help develop work habits that are currently lacking in younger hires. The “old hands” can also pass down the knowledge needed to solve problems without creating new ones–knowledge there is no “app” for.

Boomers have not saved for retirement because it’s retirement itself that needs to retire. The old cultural set-up simply won’t work with such a disproportionate number in the “retiring” generation and so few in the one that follows. (There are 77 million boomers and only 40 million in Generation X.) Instead of lamenting what individuals aren’t doing, we need to be building bridges to a whole new version of this time of life.

Once you are “old enough to retire,” the desire is for flexibility, not pure leisure. If we can harness the talent available in that pool and use it to make our for profit and not-for-profit efforts more effective, we all win–again and again and again.

This notion that boomers are stupid for not “getting ready to retire” is itself stupid. What the experts are urging them to get ready for is not, and was never, what they want to do. Let’s run with reality and shape some of the work that needs to be done so it replaces retirement.

 

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