Tuesday, May 23, 2006

Many Forced to Retire Early | Chicago Tribune

This article appeared May 15 2006 in the Los Angeles Times and on the Chicago Tribune web site. The answer for many employees is to create multiple streams of income for themselves. Many believe in the advice they were given when they were young, "Get a good education, get a good job and work hard so you can enjoy your retirement."

It just isn't true!

I encourage you to read the following article and take a hard look at what you can expect from your job or career in the next five years. If you thinkk you can tell exactly where you will be in 2011 and what you will be earning, join the No Limit Success mailing list.

You need to see what I am doing to protect my family from future job loss or pension cutbacks. This is no sales pitch, I am sharing information you need to know.

Excerpts from the article by Jonathan Peterson:

Many Forced to Retire Early
Despite the increasing financial pressure to stay employed, nearly half of U.S. workers leave before they plan to, a survey indicates.

American workers, who face growing financial pressure to stay in the workforce, are far more likely to be forced into an early retirement than many expect, according to a study being released today.

Four out of 10 retired workers left their jobs sooner than they had planned, usually because of health problems or the loss of employment, according to the report by McKinsey & Co., which was based on a national survey of 3,086 people.

The survey also found that 45% of people who are currently employed planned to keep working past age 65. But among the retirees polled, only 13% said they had done so.

The findings raise fresh concerns about Americans' ability to afford a comfortable retirement. With more companies abandoning or freezing their pensions, many people say they plan to work longer to build up their nest eggs.

The reality "is quite sobering," said David Hunt, a senior partner at McKinsey. "Our research clearly shows that many people — and more than a few public policymakers — who are betting on simply working longer to compensate for a lack of current savings are setting themselves up for a rude awakening and a significantly poorer standard of living in retirement than they had expected."

...

[story of a man laid off at 60] "... the jobs I applied for I didn't get. My feeling was it was because of age."

Marsh estimates that his pension is less than half what it would have been had he remained longer in the job. To boost his income, he signed up for Social Security earlier than planned, further scaling down his retirement pay. Eventually, he and his wife took in an elderly boarder for whom his wife cares to make ends meet. "It's been difficult," he said.

...

... workers face the need to maintain their careers to set aside money for retirement. "I think we're seeing the realization on the part of people that they ought to extend their work life longer than in the past," she said.

It is a realization brought on by the changing landscape for retirement security. Many employers no longer provide traditional pensions with guaranteed monthly payments. Instead, they offer 401(k) savings plans, and it's up to the workers to salt away enough money to last them in old age.

...

"This kind of information," Rother said, "is clearly not what the boomers expect."


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