If you are working and have been for a long time, you may be asking yourself, as my brother did this year, “When should I (or can I) retire?”
The official age of retirement in Canada is 65 in the USA it is 66. However, the average reported retirement age in 2016 for Americans was 61. The age of retirement is not going down, it is going up. The U.S. Census Bureau did a poll that shows that Americans are retiring in 2018 at age 63.
Retirement has been on the rise for many reasons since 2004:
Given all of the above, it is interesting that we are still retiring three years sooner than we planned. We plan to retire at age 66, but we actually retire at 63.
As Robbie Burns once wrote… “The best-laid plans of
mice and men can sometimes go awry.”
Why do we retire sooner than we plan? There are a few reasons I can think of, for example, personal medical problems, medical concerns of a cherished one, or corporate downsizing. Some investigations conclude that 60% of us end up retiring sooner than we planned to retire.
Other reasons for retirement could be that your job gets eliminated or your job is transferred to new locations and you don't want to move. The job market has shifted which has affected numerous workers’ planned and actual retirement.
The job market has also seen a swing in the unemployment rate in the US since 2000, Since then the unemployment rate has ranged from a low of 3.8% in April 2000 to over 10% in 2008-2009, then down to 3.9% in September 2018.
The job market has also shifted during this time, and the types of jobs, where they’re located, and the skills required have also changed. Manufacturing employed the most people in 1997. Since 1997, the healthcare/social assistance industry has gained 6 million new jobs while manufacturing has lost more than 5 million jobs.
The skills needed in healthcare are different than those needed in manufacturing. Without training, workers cannot make the switch to the new growth area jobs. In the US healthcare is now the top sector for employment while manufacturing has slipped to 4th place.
If you are like many of us you may find yourself behind on your retirement savings. I know that happened to me but I was lucky enough to catch up between 50 and 63. Many of us hope that we will catch up while we are at peak earning. (ages 55-65).
As you move through life and think about retirement, live within your income, and put some money into your emergency fund and your retirement.
The official age of retirement in Canada is 65 in the USA it is 66. However, the average reported retirement age in 2016 for Americans was 61. The age of retirement is not going down, it is going up. The U.S. Census Bureau did a poll that shows that Americans are retiring in 2018 at age 63.
Retirement has been on the rise for many reasons since 2004:
- We are healthier, so we are able to work longer.
- We live Longer interest rates have dropped which means you need to save more money.
- More of us work in white collar and service jobs. This means we can perform our job tasks longer when compared to manual labour jobs.
Given all of the above, it is interesting that we are still retiring three years sooner than we planned. We plan to retire at age 66, but we actually retire at 63.
As Robbie Burns once wrote… “The best-laid plans of
mice and men can sometimes go awry.”
Why do we retire sooner than we plan? There are a few reasons I can think of, for example, personal medical problems, medical concerns of a cherished one, or corporate downsizing. Some investigations conclude that 60% of us end up retiring sooner than we planned to retire.
Other reasons for retirement could be that your job gets eliminated or your job is transferred to new locations and you don't want to move. The job market has shifted which has affected numerous workers’ planned and actual retirement.
The job market has also seen a swing in the unemployment rate in the US since 2000, Since then the unemployment rate has ranged from a low of 3.8% in April 2000 to over 10% in 2008-2009, then down to 3.9% in September 2018.
The job market has also shifted during this time, and the types of jobs, where they’re located, and the skills required have also changed. Manufacturing employed the most people in 1997. Since 1997, the healthcare/social assistance industry has gained 6 million new jobs while manufacturing has lost more than 5 million jobs.
The skills needed in healthcare are different than those needed in manufacturing. Without training, workers cannot make the switch to the new growth area jobs. In the US healthcare is now the top sector for employment while manufacturing has slipped to 4th place.
If you are like many of us you may find yourself behind on your retirement savings. I know that happened to me but I was lucky enough to catch up between 50 and 63. Many of us hope that we will catch up while we are at peak earning. (ages 55-65).
As you move through life and think about retirement, live within your income, and put some money into your emergency fund and your retirement.
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