I came across an informative article in Monday's Dallas Morning News, "Retirement Readiness."  (This article is also available in the New York Times). Two financial advisors in North Carolina put their pre-retiree clients through a "boot camp" designed to prepare them for what it will feel like when they retire. It helps people determine if they will truly be ready to retire at the age they plan to do so.  It got me to thinking about what retirement is really all about. 

On the surface, retirement sounds great.  No more of the 9 to 5, the lengthy commute, the irritating coworkers and plenty of time to do what you want, when you want and how you want.  But as financial advisors Marcia Tillotson and Joy Kenefick note, "Retirees suddenly have no place to be each day, which may not be as blissful as it seemed beforehand.  The paychecks stop coming…after years of dutifully putting money into savings, retirees have to get used to watching their accounts dwindle."  Thus, in exchange for my waking up and leisurely sipping my coffee, watching infomercials, shopping, volunteering, gardening or just hanging out in the 80s clothes that I could never wear to work, I no longer get to watch my retirement account fill up (or not, depending on the market) with my hard earned paychecks.  Instead, I must start relying on those accounts as income, not savings, and hope they will last me until I live to be 100 (and yes, that is likely since two of my relatives were cenetarians). 

After about a year of going through Tillotson's and Kenefick's retirement boot camp, about 80 percent of pre-retirees decide to work longer than they planned, according to the article.  In other words, the income target is more important than the age target. 

George Foreman couldn't have said it better.

This may all sound like doom and gloom, but keep in mind — according to the EBRI report, the actual median retirement age is only 62.  That is also the minimum age when one is eligible to receive early Social Security retirement benefits.  But the survey also notes that 21 percent of respondents plan on working into their 70s.  Sure, retiring before age 65 sounds ideal, and perhaps working into the 70s sounds like drudgery, but there are so many advantages to delaying retirement until age 70.  First, those who wait until age 70 to apply for Social Security benefits receive a delayed benefit credit, resulting in about 20 percent more Social Security income per year than retiring early.  Second, those with Roth IRA accounts can contribute to them indefinitely with after-tax dollars.  Third, those who choose to work beyond their full retirement age will escape the earnings penalty, which reduces their Social Security benefits by 50 cents for every dollar they earn.

Finally, people are living longer and staying healthier into retirement years.  So this may be an opportunity to regroup and change careers, or start earning money from that hobby you have tinkered with for 20 years.  I am still 20 years away from retirement but this survey has gotten me to thinking about what my next career might be….actually, the thought of working on the ground crew at the airport has always fascinated me….what do you think, folks?