Practicing for Retirement? (5 Things)
As I've been between jobs these past 2-3 months I've often thought about it as practice for retirement. I first thought of that moniker when I was between jobs in 2001-2002. This is now my third such period of "practice". And it's the best yet. Here are Five Things:
1) Growing up I didn't have many positive role models of retirement. Adults in my family either died before retiring, or lived to great old ages while being inactive shut-ins for years or even decades. I certainly hoped to live past retirement and be healthy and active to enjoy it.
2) Adults in my neighborhood who reached retirement age seemed to flip the switch from working 40+ hours per week to plopping themselves in front of the TV with a beer in hand all day. That scared me because I knew that wasn't how I wanted to enjoy my last 10, 20, or more years. One of my relatives, Uncle Hugh, tried retiring like this and had no patience for it. After less than a month doing 12oz arm curls in his La-Z-Boy he went back to work, taking odd jobs like being a 24-hour on-call locksmith. That scared me, too. I dreaded retirement being so boring that it would drive me back to work menial jobs until I die!
3) My first practice retirement came in 2001/2002. The economy was reeling from the dot com implosion and then 9-11, so when I lost one job due to company downsizing the next was hard to find. I thought of the moniker "practice retirement" to help keep my spirits up as I faced a nearly nonexistent job market. But it wasn't just a wry expression, it was a real thing. I learned during that time that I didn't need to define myself by working. I engaged in other activities, including playing Bridge and (modest) travel, and found personal fulfillment in them.
4) Money. That's the other issue. Activity, engagement, personal fulfillment- these are all nice things, and important, but money is at the root. Specifically, having enough money to afford a reasonable lifestyle in retirement. In the US system there's little in the way of social safety nets. What's there still leaves you at the poverty level, basically. So if you're not in the 13% (and dropping) of the population who have defined retirement plans guaranteed by union contracts, responsibility for saving for a comfortable retirement rests in your own hands. When I was between jobs in 2001/2002, and again in 2003/2004, I had saved up enough money to weather several months without work though I had nowhere near enough to retire. I simply hadn't had long enough to save for that. The experiences underscored for me how crucial it was to step up financial planning for retirement. Yes, even in one's early 30s!
5) I've had fewer worries about money these past few months than when I was between jobs years ago. That's thanks to how much more aggressive I've become about planning, saving, and investing over the past several years. Though that's not to say I haven't worried about money recently. I definitely have! As much as I'm closer to affording a comfortable retirement, I'm not there yet. Maybe after 5 good years I'll be ready to give the working world the finger, permanently.
1) Growing up I didn't have many positive role models of retirement. Adults in my family either died before retiring, or lived to great old ages while being inactive shut-ins for years or even decades. I certainly hoped to live past retirement and be healthy and active to enjoy it.
2) Adults in my neighborhood who reached retirement age seemed to flip the switch from working 40+ hours per week to plopping themselves in front of the TV with a beer in hand all day. That scared me because I knew that wasn't how I wanted to enjoy my last 10, 20, or more years. One of my relatives, Uncle Hugh, tried retiring like this and had no patience for it. After less than a month doing 12oz arm curls in his La-Z-Boy he went back to work, taking odd jobs like being a 24-hour on-call locksmith. That scared me, too. I dreaded retirement being so boring that it would drive me back to work menial jobs until I die!
3) My first practice retirement came in 2001/2002. The economy was reeling from the dot com implosion and then 9-11, so when I lost one job due to company downsizing the next was hard to find. I thought of the moniker "practice retirement" to help keep my spirits up as I faced a nearly nonexistent job market. But it wasn't just a wry expression, it was a real thing. I learned during that time that I didn't need to define myself by working. I engaged in other activities, including playing Bridge and (modest) travel, and found personal fulfillment in them.
4) Money. That's the other issue. Activity, engagement, personal fulfillment- these are all nice things, and important, but money is at the root. Specifically, having enough money to afford a reasonable lifestyle in retirement. In the US system there's little in the way of social safety nets. What's there still leaves you at the poverty level, basically. So if you're not in the 13% (and dropping) of the population who have defined retirement plans guaranteed by union contracts, responsibility for saving for a comfortable retirement rests in your own hands. When I was between jobs in 2001/2002, and again in 2003/2004, I had saved up enough money to weather several months without work though I had nowhere near enough to retire. I simply hadn't had long enough to save for that. The experiences underscored for me how crucial it was to step up financial planning for retirement. Yes, even in one's early 30s!
5) I've had fewer worries about money these past few months than when I was between jobs years ago. That's thanks to how much more aggressive I've become about planning, saving, and investing over the past several years. Though that's not to say I haven't worried about money recently. I definitely have! As much as I'm closer to affording a comfortable retirement, I'm not there yet. Maybe after 5 good years I'll be ready to give the working world the finger, permanently.