How to Profit as Seniors Say No to Retirement in Record Numbers

Tony Hi, We retired at 62 (Industrial Chemist) & 60 ( private practice OBGYN) . We have not missed work. We enjoy scuba diving, snorkeling,swimming and touring. We spend three months in Florida and three months in Hawaii. We are adding more travel to Roatan, Cozumel, Bonaire, Malta and other dive & sacred sites. We live on the Eastern Shore of Maryland. Retired with 2 million +, nice utility pension, paid off house and goal of 15% bracket until more $ are required for adventure. The work forever model was not for us . We have worked like crazy since 10 years old family farm and family plumbing. Keep Smiling Letro

LIVING LONGER OR DYING SOONER ?

Medical reality for many of those over 65 is the growing limitations of health care related issues to their lifestyle or work style. For example, anyone who grew-up and participated in WWII (The “Greatest Generation”) probably smoked during that era. K-Rations came with free cigarettes. Unfortunately, most people who smoke will eventually develop COPD (Respiratory Disease). So, shortness of breath is a common symptom of this ailment and its progressive, getting worse with age, not better. No cure either.

Smoking is also a risk factor for those with cardiovascular issues ( Heart Disease). Plenty of people today have heart disease, often genetic. By your seventies, you will know it. Some will have fatal or near fatal heart attacks by then if not before. Lifestyle issues and especially diet contribute to the onset of systemic Cardiovascular disease. So, you won’t be working after a major heart attack if you are in your late seventies. Instead, you would probably be disabled or have limited mobility.

Initial trends suggest Baby Boomer as a cohort may not live as long as their parents ( The Greatest Generation) due to lifestyle and health related issues ( Alcohol and Drug Abuse). Many may die relatively young, perhaps in their late seventies instead of their late eighties. This will solve the medical care cost problem: patient deaths or shorter lifespans. Its nature’s way of reducing overpopulated habitats back to the carrying capacity ( available resources).

The way Medicare looks at it, delaying or denying care is very cost effective. Welcome to the coming World of Health Care Rationing. Demographics, low economic growth, reduced productivity, and escalating medical costs, plus much tighter Federal budgets in the future portend less Medical Care for the Elderly, not more. You therefore must take care of yourself. Fewer workers will have stable careers for 30 years, good pensions and health care benefits. They will have to fend for themselves all their lives and often as not, Take What they Can Get. It will be less than the previous generation in all probability.

RAW DEAL FOR SOME RETIREES

Visited In-and-Out Burger for lunch. Talked with a 79 year old CPA who is still preparing business and individual tax returns. It did not seem like he ever plans to completely retire as long as he is healthy enough to sit at a desk in his office. My guess is all it takes is one divorce to ruin your individual retirement plans. At a minimum, it would set you back a number of years or reduce your lifestyle.

For example, in Oregon, a retired Oregon State Policeman (20 years-reduced pension) had a divorce. In Oregon, PERS pension benefits are property that can be attached by a former spouse. So, no “retirement”. Instead, he had to go back to work the night shift doing vehicle patrol for a Private Contract Security Firm for $12.00/hour. That is life ??

So, all it takes is one divorce to ruin your retirement plans. A high divorce rate suggest many worker’s plans have already been changed whether they know it or not. Work for 30 years and then give half to a former spouse. The government takes their cut (income taxes), as well. You get what is left. A raw deal indeed.