JBMEParticipantStatus: SpousePosts: 198Joined: 03/26/2018
I thought this was interesting and could put in some perspective here:
Ignore the Suze Orman focus. The bubble chart of what percentage of americans retire at what ages is a reality check for those of us who aspire to retire so early. Here’s the breakdown, according to the Current Population Sruvey, of what percentage of people who are retired, when they retired:
Under 50 years old: 1%
50-54 (I put myself in this group): 3%
So if you plan to retire before age 55, you’re really very unique. And you’re still quite unique if you retire before age 61.December 3, 2018 at 7:58 am MST #171346ReFinDocParticipantStatus: PhysicianPosts: 118Joined: 01/09/2016
Retirement is an outmoded concept especially to late-starting, high earning physicians. Most of the general public “retires” due to disability or involuntary unemployment. Suze Orman is not talking to high earners, she is selling herself, cashing in on the hysteria. She has a long history of “do what I say, not as I do.”
I like the “FI” part of FIRE better than the “RE” part.ajm184ParticipantStatus: Other ProfessionalPosts: 473Joined: 07/14/2017
Interesting percentages. I wonder within these percentages, a further breakdown of folks who are compelled to ‘retire’ at a certain age versus the choice of retirement. I would guess the ‘retirement’ is less of a choice at the early and later end of the spectrum due to health related reasons.PedsParticipantStatus: PhysicianPosts: 2110Joined: 01/08/2016portlandiaParticipantStatus: PhysicianPosts: 242Joined: 07/07/2017
Under 50 years old: 1%
50-54 (I put myself in this group): 3%Click to expand…
Thought this was your typo, looked at the article, they have the same age range listed twice with different percentages.
Disagree with Fiancial Samurai and Suze Orman who say that you need $5M+ to retire prior to 60. These sentiments speak to being incredibly out of touch with the way most Americans live and spend. Do they remember that the median household income is ~60K? They have been in their bubble too long. Time to get out more and meet some regular folk.TimParticipantStatus: AccountantPosts: 600Joined: 09/18/2018The bubble chart of what percentage of americans retire at what ages is a reality check for those of us who aspire to retire so early.Click to expand…
The reality is potentially squewed. 401k’s have been generally available since the mid 80’s, about 30-35 years. Those over 50, most likely weren’t maximizing retirement savings. Social pressures, pensions, government benefits were all geared to 62-65. Early withdrawals were “hardship” or 59.5. Only those in their mid-thirties would have been born under the defined contribution scenario.
In the early 1970s a group of high-earning individuals from Kodak approached Congress to allow a part of their salary to be invested in the stock market and thus be exempt from income taxes. This resulted in section 401(k) being inserted in the then taxation regulations that allowed this to be done. The section of the Internal Revenue Code that made such 401(k) plans possible was enacted into law in 1978. It was intended to allow taxpayers a break on taxes on deferred income. In 1980, a benefits consultant and attorney named Ted Benna took note of the previously obscure provision and figured out that it could be used to create a simple, tax-advantaged way to save for retirement. The client for whom he was working at the time chose not to create a 401(k) plan. He later went on to install the first 401(k) plan at his own employer, the Johnson Companies (today doing business as Johnson Kendall & Johnson). At the time, employees could contribute 25% of their salary, up to $30,000 per year, to their employer’s 401(k) plan.wonka31ParticipantStatus: PhysicianPosts: 312Joined: 03/24/2018
I saw this and found it interesting. My bet is the reason they get to only 17% with retirees under the age of 60 is due to not being fully retired. I would be interested to know percentages of people who cut back, transitioned into a second career, do freelance work, etc. my bet is that very very few completely retire in this younger age demographic, but many work part time or freelance.The White Coat InvestorKeymasterStatus: PhysicianPosts: 3717Joined: 05/13/2011
My dad worked well into his 60s and regrets working so long. Wishes he retired with a lot less money in his late 50s. Hard to get the balance right without a crystal ball.
Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011LithiumParticipantStatus: PhysicianPosts: 825Joined: 02/15/2016
My Dad retired at 55. I don’t think he regrets it at all 23 years later. He told me he got sick of paying taxes. I’ve absorbed a lot of that, which is one reason I’m already cutting back.December 3, 2018 at 11:57 am MST #171450TimParticipantStatus: AccountantPosts: 600Joined: 09/18/2018my bet is that very very few completely retire in this younger age demographic, but many work part time or freelance.Click to expand…
Anacdotally, wrong. If one keeps working, their lives are “out of sync”, until the kids are gone with occupies the one. Part time or freelance works for awhile, then its “now what?” Depending on the skills, reentry is likely same or different field.
Health or unemployment “causes” retirement. The work ethic is drummed in, 60 maybe if you have a “huge nest egg”, of course that is relative.December 3, 2018 at 1:02 pm MST #171464AntaresParticipantStatus: PhysicianPosts: 399Joined: 01/20/2016
My dad loved working and retired at 67 “because that was the general retirement age”. He has missed working ever since, and at 84 wishes he’d worked well into his 70s. Different strokes.
http://www.YouTube.com/c/shoutingfromtherooftops for my Youtube channelwonka31ParticipantStatus: PhysicianPosts: 312Joined: 03/24/2018
Tim, you may be right. I bet they are becoming and will continue to become more common though. My dad FIREd twice, not the way that the media shows it or MMM does it. He left his job on his own terms, I was about to start high school and he wanted to be around more. The first effort lasted six weeks, he then began part-time consulting as ‘a favor’ which then led to full-time consulting two years after that (he wanted to watch my sporting events while I was in high school). He then went back to his own employer.
FIRE #2 happened five years later, lasted one year and then he again is back at his employer.
I think my dad’s situation used to happen more frequently, but will become rare as he employee and employer relationship continues to dwindle. The loyalty simply isn’t there anymore.