STAGE 1-- DRAWING ON THE EXPERIENCE OF OTHERS

By Ron Iverson, Copyright 2007

Following are examples of drawing on the experience of others--misconceptions which caused problems.  Knowing the problems ahead of time, will help provide information to those seeking solutions in this series of articles in the blueprint.

Experience Example No. 2.   "I thought I'd be able to retire around age 55, but it's not possible."

Early retirement, seems to be available to only the wealthy, or those who are very well prepared ahead of time.  As recently as a decade ago, this ambition was achievable, but, as retirement problems begin to surface, early retirement seems to only mean availability for another job, and a forced "double and triple dipping" scenario.

As Maynard G. Krebs, the consummate hippie on Gilligan's Island, exclaimed forty years ago, "Work?!"  Yes-work.  No matter what measures are taken to "correct" all the economic and entitlement problems facing America's retirees, one thing is certain,  "WORK" will become a huge part of a new "four-legged stool" of retirement.   Downscaling, thrift, and cost-cutting, all become a part of most retiree's thinking, but "work" will be commonplace for many.

Work will be of major necessity, and  "subsistence wages" will take on a new, real, and unwelcome meaning for a great number of the retired masses.  Working for wages has already surfaced as a survival tool for many of America's retired people.  More and more "retireds" are finding that their mere existence, excluding the frills of a fancy retirement, is dependent on having a job, assuming they can work.  And then, assuming that they are happy with the type of work and wages available to them.

Additionally, the factor of staying with an employer who offers group health up to age 65, and perhaps even longer, is no small item.  Those who have retired early, and lost group health benefits can attest that the incredible cost of individual private health insurance, from age 55 on up, results in a nasty surprise to early retirement planning.   

Experience Example No. 3  "We were led to believe that moving to a warmer climate would be cheaper."

A common demographic paradox is that America's senior citizens have found a new way of life in the Sun Belt.  However, while the living is easier, the cost of living is no easier.  Lower winter heating bill savings can be eaten up by high air conditioning and utility bills.  In addition, sales taxes, higher state income and property taxes, and the inflation of normal "cost of living" scenarios all create retirement problems. 

The Sun Belt states have already experienced the imbalances of swollen retiree numbers.  Most states are in a continuing battle to stay ahead of the situation facing their own budget problems, created in part by Medicaid nursing home and home care costs, and trying to provide general economic planning for the retired hordes.  It's only the beginning.

In Article No. 7 we will continue the experience of others in discussing Social Secutiry and Medicare.