No retirement- the new model of retirement?

Lots is being written about the changing face of retirement. My Budget 360 states that many people will never retire. Others say the new 65 retirement age is 80.

According to MyBudget360:

We are left with over 75,000,000 baby boomers entering into retirement with very little saved. One out of three Americans has absolutely no money saved to their name. In 1983 over 60 percent of working Americans had some sort of defined-benefit pension plan. Today that number is below 20 percent. With the average worker making $25,000 a year the media designed idea of retirement is largely just another fantasy.

That's a lot of people that have no money saved. And, according to FrugalDad.com, most people are just throwing money at a number, with no idea of what it will take to live on in retirement. He references the ING commercial below.

Frugal Dad says a big problem is determining that number. And, then is it accurate? You may be able to live more simply than the retirement calculators suggest. (One retirement calculator is at ING. You can find others by googling "retirement calculator.")

At the ING calculator, one option is Domestic Traveler, with an estimate monthly spending of $5,600. That is assuming traveling part time in an RV and keeping a dwelling. Full-time RVing can be much less than that, many living on $2K/month or even less. When you add in working or volunteering on the RV road, that can lower your expenses even further.

Yes, articles paint a dreary picture about the future of retirement. I did come across another article in the New York Times money section that has some creative solutions for funds if you are laid off just before you retire and need some money to fill in. Again, RV retirement along with working or volunteering can be a good solution.

Many of us are where we are with not a lot of time to add to funds for the future. Save what you can and remember, we always have choices. There are tons of things to do- to enjoy life and be productive - that don't cost a cent. Jaimie Hall Bruzenak

Comments

[Rene & Jim]

We are in our early and mid-40s and while we are regularly saving for retirement, we don't actually see ourselves ever really not doing something productive in exchange for money. Retirement? What's that?

Who wants to sit in a chair and watch TV all day, when you can get out there and contribute to society in some positive way? As small business entrepreneurs living on the road, this is how we see ourselves spending the rest of our lives. I guess because we've never had a true employer-sponsored pension fund, so the concept of "retiring" has never been part of our thinking.

I feel so bad for folks who are retirement age and have lost (or never had) the right funds put away for old age. For those of us who are younger and have a bit of time, I think that we all stay out of debt for good, live a simple lifestyle and contribute as much as we possibly can to a good retirement fund, working into our golden years will be a choice, not a necessity.

[Jaimie Hall Bruzenak]

Thanks for a thoughtful post. The idea of staying out of debt and living a simple lifestyle could make a difference for all of us.

Jaimie