We baby boomers are going to have to face some hard truths. The economy, the amount of retirees and immediate future retirees, and the amount of workers left in the work force are all factors in what has amounted to a phenomena. This phenomena is the working retiree. Listed here are some baby boomer retirement facts that you need to know in order to plan for your future, and perhaps become a working retiree yourself.
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The Anger Inducing Social Security Facts
According to the Social Security Board of Trustees, Annual Report, Social Security benefit dollars will run out in the year 2034. I will hit 70 years old that year, and will be right in the middle of receiving Social Security money. The thing that makes me angry is that I have worked since I was 15 years old putting money into that account. That’s 40 years!
The report also states that only 79% of an individual’s benefit will be payable at that point. The 79% payout will be available through 2090, in which year I will be 126, but I doubt I will be here THAT long.
So I’m going to get a cut in pay about 3 years after I retire, if I last until 67. 67 is the age in which a person (born in 1962 or later) receives full benefits. Your FRA (Full Retirement Age) will differ, depending on when you were born. Bear in mind too, that you get reduced Social Security benefits if you retire before your FRA.
You are able to work while receiving your Social Security benefits. “This year, Social Security deducts $1 of benefits for every $2 earned above $15,720. For those reaching full retirement age in 2016, Social Security deducts $1 for every $3 earned above $41,880. Once you reach full retirement age — 66 for those born from 1943 through 1954 – you can earn an unlimited amount without a reduction in benefits.
And by the way, Social Security is designed to replace only 40% of your income.
All of this information can be found at the AARP website.
We Don’t Have Enough Money Saved
- 17% of workers are very confident in their ability to live comfortably in retirement, according to the Employee Benefit Research Institute.
- 25% of current retirees indicate some of their income comes from working for pay during retirement.
- 40% of current retirees indicate their healthcare costs have been higher than anticipated.
“In fact, future retirees responding to one Nationwide Retirement Institute survey thought they’d spend 20% of their Social Security benefits on healthcare, but the average retiree who claims Social Security benefits at 64 could actually end up spending almost 65% of Social Security benefits on medical expenditures.” From The Motley Fool
According to the Economic Policy Institute, the 56-61 age group (which can be considered “pre-retirees”) has an average retirement savings of $163,577.
According to a 2018 study by Northwestern Mutual, 21% of Americans have no retirement savings and an additional 10% have less than $5,000 in savings. A third of Baby Boomers currently in, or approaching, retirement age have between nothing and $25,000 set aside.
The Ugly Truth: We Are Going to Have to Work
The number of working Americans between ages 65 and 74 is expected to increase 4.5% between 2014 and 2024, while the number of those between 16 to 24 is expected to drop 1.4%, according to US Bureau of Labor Statistics.
So, it’s looking like we will all have to work through our retirement. We will have to find that side gig that helps with the health care bills and buys groceries. But the news isn’t all bad. Now is the time to do that thing that we always wanted to do! Here are a few suggestions:
Become a tutor, teachers aid, or teach English as a second language: Have you always wanted to work with children? Have you wanted to help people overcome barriers and open up to their full potential? Getting a teachers license is fairly easy if you already have a Bachelor’s degree in a given area. Most states have certification programs at state sponsored schools, Colorado (where I live) requires 800 hours as a student teacher to get a teaching certificate.
Work a seasonal job: There are hundreds of seasonal jobs available to older applicants. Try landscaping, tax prep, hospitality work, Christmas package handling and delivery, resort work, or campground host (at state and national parks). Check out https://www.coolworks.com/older-bolder. They have great jobs for seniors posted at national parks all over the country.
Do freelance, contract, or consultant work: Try Upwork at https://www.upwork.com/ This is a platform for freelance workers, that helps you find work and then helps you with tracking your hours and pay, and a lot of other tools. It’s free to join, but they also offer a premium membership that gets you exposure to premium jobs, etc. FlexJobs at https://www.flexjobs.com is another great freelance platform, but they require a paid membership.
Try a retail job: Retail outlets are always looking for good people to fill part-time jobs. They don’t pay very much hour, but they do offer flexible schedules. The big retail stores often hire senior greeters. Fast food restaurants often hire a retiree for a front dining room to bus tables and keep supplies stocked.
Do affiliate marketing: Affiliate marketing is by no means new. This is a method of promoting companies on your website, and if someone makes a purchase through your advertising, you get a commission. By far the best platform for affiliate marketing is Wealthy Affiliate. They have a training program that works for beginners and experts alike. Also, the community of bloggers and online business entrepreneurs at Wealthy Affiliate is inclusive, supportive, helpful, very positive, and takes on the attitude of paying it forward. For a small fee ($49 per month) you will receive all the training, hosting, and support you need to create your own money making website. It’s not easy. It takes work. But it will pay off in the long run, and can very easily be learned and maintained by a senior worker.
I’m an advocate for learning affiliate marketing, and of the training you get from Wealthy Affiliate. This is a great place to start a part-time or even full time job that will eventually earn you passive income, which you can apply to your retirement. Please see my review and other articles I’ve written about Wealthy Affiliate below.
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It’s Coming, So Let’s Get Ready
I know it isn’t easy to think about retiring in an economy that barely supports us working at full capacity. But by planning ahead now, by learning that new skill, by creating a paying website, and by thinking about what we really want to do, we can avoid the ambiguity of losing our income in the coming years. Whether we like it or not, we are going to have to stop working at some point, and it will be better to be prepared when that day comes.
Thanks for reading, and if you have any questions or comments, please type them below.
This is really a must read for every retiree and everyone close to retire. I must commend you for taking your time to share this article , exposing old people between the ages of65 and above the opportunities they can embark on , the work they can find themselves doing after retiring . Thanks for sharing this information.
Thanks so much for commenting. I’m in that set that’s about to retire, and I was quite alarmed when I read those statistics I listed. Scary! That’s what I’m doing at Wealthy Affiliate, learning how to get an online business up and running, so I won’t have to worry when retirement comes. Thanks again for reading and commenting! Rhonda
Hi that was very interesting it definatly cought my eye and made me read the post it definitely gives you something to think about after working all your adult life to not be able to enjoy retirement is a real kick in the guts! I Think you have a real clever niche idea you can market to and encourage to go down the Blogging/Affiliate path. Both my folks are now retired my Mum not all that long ago i have tried to encourage them to have a look around give Wealthy Affiliate a chance they could not be less interested lol i think you will be ok by the time you are fully retired your blog will be Racking it in 🙂
Conor, thank you so much for reading and commenting. If it helps, maybe you could share my post with your parents. It definitely is a kick in the guts when you read those stats and realize they are talking about YOU! I think that I am on the right path to having a work-around to the Social Security issue. Again, thanks for visiting my site. Rhonda
The TRUTH is hard, even harder than a sledge hammer. We often try to run away from the truth but each day we wake up to find it staring us hard in the face.
You have absolutely written and detailed the reality on ground that we tend to shy away from or are ignorant of. What is the fate of a retiree in the nearest future? Retirement is supposed to be a time of rest, but ironically it will be the time for harder work for some individuals in order to survive at an advanced age.Social security benefits may no longer secure retirees, this is alarming as documented by the AARP.
There is every indication now that people have to find alternative means of earning extra income for sustainability. Online business seems to be the nearest best option, and the best time to star this is now. Am happy there is a program like Wealthy Affiliate which you mentioned that can cater for those who need to earn extra income to secure their future.
Thank you for this fact finding article, it is full of information, with facts and figures. This has put me on my toes to work smarter for the future.
Thank you so much for your comments. Ya I could say that I was horrified when I saw these stats for the first time. All my life I’ve done all the right things to save for retirement, and I’m still in a leaky boat. That’s why I’m setting up my online business now, so it’s paying by the time I retire. Thank you again for reading and commenting! Rhonda
I am 55 and i have no retirement savings at all. I work as a bus driver for a local school bus vendor. Most of the drivers ans aids are over 65 and well in to the 70 and stiill working. I have a neighbor from my old neighborhood 75 and stil in real estate sales. I myself expect to be like them.
Dave, thank you for reading and commenting. I am 55 too, and everyone I know that is supposed to retire is not retiring. My husband and I joke around that we will be working until we are 92, but although funny, it has a bitter edge to it. I plan on having my affiliate marketing website up and running before all this happens. I think it’s worth taking a gamble on it at this point. Better odds than winning the lottery, for sure, and way better outcome than doing nothing. Thanks again for reading and commenting! Rhonda