Retirement

Question 1

Planning for retirement…financially

Answer 1

• Most prepare once they feel that it’s “on the horizon”
• Early preparation and planning for financial changes will fare better
• –Should plan for a retirement income of 70-80% of preretirement income
• –BUT few plan (20% of adults age 55-61 have no savings; Wells Fargo, 2014)
• Who prepares?
• –People with a college degree
• –White, non-Hispanic adults
• –Those with more positive beliefs about ability to control aging

Question 2

Planning for retirement…psychologically

Answer 2

• Need to prepare for lifestyle changes in addition to finances
• Those who plan for how they will spend their time experience better adjustment and increased life satisfaction
• “Replace work mates with play mates”

Question 3

retirement

Answer 3

• With increased life expectancies, people are working longer and experiencing longer retirements
• Who retires sooner?
• –Individuals experiencing physical decline
• –Those who have highly stressful jobs
• –Women
• Who retires later?
• –Those whose identities are tied tightly to career
• –When work is stimulating
• –When work is in a pleasant environment
• –Those in professional occupations & self-employed

Question 4

more retirement

Answer 4

• Social security benefits begin at age 66, but average age of retirement is 63-64 for men and 62 for women (U.S. Census Bureau, 2019)
• Retirement isn’t universal
• –In Bangladesh, Jamaica, & Mexico, ½ of adults over age 65 work until seriously ill
• –US barely allows people to make it
• —-Social Security Act (1935): employees/employers pay in, support basic retirement needs
• —-Pensions & savings require individual initiatives
• —-Problem: depends on stock market & people living longer

Question 5

Psychological Effects of Retiring

Answer 5

• Unhappy if:
• –Left job unwillingly
• –Serious money or health worries (especially if continues from preretirement)
• –If loss of worker role is not replaced with other social roles
• Happy if:
• –Voluntarily retire
• –Healthy, married, have money
• –Retiring from a stressful/burdensome job
• –Want more time in social roles, especially with family
• –Have personality where you are open to new experiences