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Thanks to student debt, study predicts new median retirement age of 73 instead of the supposed average of 61. With life expectancy at 84, that's only 11 years of official retirement.
The numbers make sense, very few people I graduated with (2009/2012) are saving for retirement, homes, kid's college funds, etc. I tend to "over save" but I know I'm in the extreme minority. Also, with fewer companies offering 401k matches (mine doesn't) saving for retirement is that much harder.
Ha, that's a nice idea.
Retirement? After being laid off and taking even just a few months to land on my feet, what small savings I had are gone and it's paycheck to paycheck for me. $45k in school loans will do that to a guy.
Bowling Ball, only 45K? lucky.
The only "retirement" I'll ever see is the one that is colloquially referred to by hit men.
pfft. i would consider myself lucky if i was retired by hitmen. i expect fukishima fallout to kill me before they even get the chance.
In all seriousness: I can't imagine being able to retire, and I *do* have a retirement savings plan. I just don't see the numbers working out in my favor in the next 20-30-40 years.
Unless you work for yourself or are employed by an exceptional firm you will be out the door and on the street by age 62. And what may be an "exceptional firm" today may not be when you approach your sixties. If the OP's firm is not even making a 401k match I doubt they would have any qualms about giving him the heave-ho.
Sad... so sad =(
Discussion today with some co-workers who are putting away $xxxx/ month, every month. Turns out they live at home, without school debt (and mid-20's to early 30's).
Most likely I will work until I'm dead. Maybe the reality is that retirement is just an antiquated idea and we need to move on? Or maybe it's just not always been attainable for everybody, anyway... blue collar workers, even with 30 years experience by now, will be very fortunate to have any retirement savings after the meltdown of 2008.
and what if you can't work until you're dead? what if you get sick or macular degeneration or something? you should probably try to live a bit below your means and put some money away. if you think it's tough being a poor underemployed architect, just think of the other half of america, like the underemployed waitresses, live. i would bet it's even harder for them.
there are a lot of people who are healthy enough and able to work at 70 years old, but there are a lot who aren't. usually, retirement isn't the sort of "choice" that can be antiquated.
Retirement is a "concept" that one must embrace at a very early age or it will pass you by. Preparing for retirement takes a fair amount of time, a LOT of discipline, and a little luck to get to a place where one can afford to retire - it doesn't happen on autopilot.
I retired a couple of years back at age 63. But, I started planning for retirement while in my early 30s. I made it my business to learn about the stock market and other forms of investment. My wife and I lived modestly and worked hard at putting aside as much money as possible for retirement. Our nest egg grew steadily and we didn't panic every time the markets panicked - we stayed the course. The compounding effect of investing over 30+ years is awesome.
While far from "rich", we now can afford not to work. More importantly, we can afford to spend time doing those things that we put off for so long due to my career.
This is not rocket science - the information needed is readily available. What's required is an early start, unyielding discipline and strong motivation. I believe anybody can do it if they set their mind to it.
You can do it !
Oh, and curtkram is right - lots of architects plan to work until they die. What they fail to consider is the debilitating effect of age and disease that may prevent continued work. It's fine to work as long as you can, but you must prepare your finances so unanticipated disease or the debilitating effects of aging don't leave you without adequate resources to live reasonably if you can't work. That's a really bad place to be.
"Retirement is a "concept" that one must embrace at a very early age or it will pass you by. Preparing for retirement takes a fair amount of time, a LOT of discipline, and a little luck to get to a place where one can afford to retire - it doesn't happen on autopilot.
....This is not rocket science - the information needed is readily available. What's required is an early start, unyielding discipline and strong motivation. I believe anybody can do it if they set their mind to it."
I would love to be able to work well into "retirement age" assuming I still enjoy what I'm doing and health allows for it. Quizzical, you are correct, it is not being rocket science by any means. Living within or below your means is something that we as a society seem to have forgotten about. I believe I'm making the right moves now to plan for the future.
However, if I went to certain grad schools instead of taking scholarships then I'd be in a very difficult place financially. I never even considered "retirement savings" until after grad school. If more of us did then it would certainly impact a number of life decisions. At the same time you're not going to be able to convince all 18-year-olds that 100k in debt will effect you for life...well after the loans are even paid off.
I started saving for retirement at 18 and hope to retire in my 50's. The effects of compounding interest is a miracle (when it works in your favor).
Who wants to retire? Being an architect is GREAT!
The lifecycle cost & analysis of my journey thus far in Archiecture...
1.) Tuition - $0
2.) ARE Exams - $0
why is that dave?
i went the route where i went to college, and since nobody else wanted to pay for it, the cost fell on my shoulders. then i decided to go about getting a license. my firm might have covered the cost of the exams, that was a long time ago, but i seem to recall paying quite a bit for study material and NCARB registrations throughout the IDP process. i'll be paying off loans for another couple decades, but i was fortunate to graduate shorty before education costs really started getting out of hand, and the interest on my loans should actually be below inflation if we can get some decent growth in the economy.