Why are people obsessed with putting $$ in retirement?

[Anonymous]

This is almost an existential question.

I have always contributed the max to my 401K and put other money in mutual funds. We paid off our mortgage in five years long ago. This was all automatic and the money was never missed. As I approach 65, I am pondering whether to retire or not. Objectively, I could conservatively draw down the 401K and together with my pension keep the same income I have now.

I am now more concerned with maximizing what I can leave for my children, both of whom have health issues. I estimate at least a 30% chance that these issues could cause them to struggle financially later in life. I'd like to leave them resources to provide them with a stream of cash to enable a decent baseline standard of living.

[Anonymous]

Because not all of us expect inheritances or sugar daddies to take us through our golden years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why are people here obsessed about saving for retirement?
I do save for the future but not aggressively. I do not max my 401k.
I am not concerned about retirement because I plan to work well into my 70s possibly 80s if still alive.

Retirement is for blue collar workers and poor people. These blue collar jobs are often unpleasant, they take a toll on the body and require a
physical fitness that workers no longer have as they age. It makes perfect sense to call it quit and retire.

White collar don't often face the same situation. They even get wiser and better with age. Why retire if you love what you are doing?

Most successful people I know are not thinking about retiring. You find a lot of old men and women at the top of the business, corporate and
political pyramid in our society. They are still working.

I know my perspective might be unique here. I'm a research scientist. Maybe I'm a crazy scientist?

I am also a research scientist. I enjoy what I do. The pace can be frantic at times. And I absolutely plan to retire. Why? Well, right now, the work I do -- the research -- is geared to what others want/need. It is very applied. I am taking my science and building algorithms that with work within the customers constraints. That is what I have to do to get paid. I would like to do some more basic research (6.1 or 6.2 instead of 6.4 in terms of DoD funding guidelines). But, I know I can not get paid what I am making to do that.

I am currently 55 and have just over 1 mil in my 401K. I am looking to work to at least when my child finishes college, in 6 years. I figure I should have closer to 2 mil; my house will be paid for and worth close to 800K. Sell it, move to an area where I can continue working (central Florida) at a lower level of effort (and lower salary) to cover expenses while transitioning to retirement. Full retirement will begin when Medicare is available.

You’ll have to be putting away at lest $75k/year (which is over the 401k limit) and hope for at least 6% per year to go from 1 million to 2 million in 6 years. Last year was great but I’m negative YTD so 6% is pretty optimistic

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why are people here obsessed about saving for retirement?
I do save for the future but not aggressively. I do not max my 401k.
I am not concerned about retirement because I plan to work well into my 70s possibly 80s if still alive.

Retirement is for blue collar workers and poor people. These blue collar jobs are often unpleasant, they take a toll on the body and require a
physical fitness that workers no longer have as they age. It makes perfect sense to call it quit and retire.

White collar don't often face the same situation. They even get wiser and better with age. Why retire if you love what you are doing?

Most successful people I know are not thinking about retiring. You find a lot of old men and women at the top of the business, corporate and
political pyramid in our society. They are still working.

I know my perspective might be unique here. I'm a research scientist. Maybe I'm a crazy scientist?

Good for you? Some of us are in white collar industries where being pushed out at 50 or 55 is very common and also common to then never land a professional salary again. That’s why I’m personally front loading retirement savings. No guarantee you can work to 70 in my field even if you want.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:Agree with the PPs above. When people go on about - oh it’s only lazy bums retiring at 65, I think they forget industries vary. If you’re a tenured professor or a govt paper pusher with a lifetime job or in some field that ends up being so high demand at 65 that you can work until you choose to quit, great. Don’t save. For many others out there including in fields that are always pushed in these boards like STEM, push outs at 50 or 55 are very real; lots of law firms are also now super strict with their retirement at 65 clauses. And while everyone says, so what go hang a shingle - let’s be real in fields like engineering and law the majority of the million dollar projects/cases you worked on for 30 yrs aren’t going to solo practitioners - with your own firm started at 50 or 65 you easily could be taking a huge cut from your salaried job bc of lack of business and costs like healthcare. I’ve seen one mechanical engineer after the next laid off in their 50s or early 60s. And frankly even in regular “business” jobs, the threat of layoff just increases as you get older and higher prices for the company. So if working until 80 is guaranteed for you, great. But realistically everyone should think thru what happens if there’s a “forced retirement” earlier than planned.

Meh. Expert witness testimony is a lucrative field for retired white collar workers. We just had one who is 80 years old. The firm puts them up, pays for food and travel, and they often charge $$ per hour. No need to stress about hanging your own shingle at 50.

Right. Bc EVERY field in America requires expert witnesses - IT, commercial litigator, insurance claims payer - oh they can all be experts, no problem. Right . . . . And PP is right, my firm does a ton of tech litigation and not once have I seen an expert retained over age 40; recently they’ve been much younger as cases involve emerging tech that is often developed by younger workers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Agree with the PPs above. When people go on about - oh it’s only lazy bums retiring at 65, I think they forget industries vary. If you’re a tenured professor or a govt paper pusher with a lifetime job or in some field that ends up being so high demand at 65 that you can work until you choose to quit, great. Don’t save. For many others out there including in fields that are always pushed in these boards like STEM, push outs at 50 or 55 are very real; lots of law firms are also now super strict with their retirement at 65 clauses. And while everyone says, so what go hang a shingle - let’s be real in fields like engineering and law the majority of the million dollar projects/cases you worked on for 30 yrs aren’t going to solo practitioners - with your own firm started at 50 or 65 you easily could be taking a huge cut from your salaried job bc of lack of business and costs like healthcare. I’ve seen one mechanical engineer after the next laid off in their 50s or early 60s. And frankly even in regular “business” jobs, the threat of layoff just increases as you get older and higher prices for the company. So if working until 80 is guaranteed for you, great. But realistically everyone should think thru what happens if there’s a “forced retirement” earlier than planned.

Meh. Expert witness testimony is a lucrative field for retired white collar workers. We just had one who is 80 years old. The firm puts them up, pays for food and travel, and they often charge $$ per hour. No need to stress about hanging your own shingle at 50.

You will have exactly 0 expert witness testimony in IT fields at 80. A guy who is 60 was just pushed out at my company. His brain simply can no longer work fast enough. Management found an excuse. I hear so many people say "so and so just needs to give it up".

Always think it’s interesting when the 30 or 45 year olds say that - that joe should give it up - as I always think, you wait buddy your turns gonna come sinner than you think. When I hear a 22 yr old say that it’s more “excuseable” bc they can’t even fathom being 40 let alone 60.

[Anonymous]

My dad was pushed out of a big tech company—they pretty openly wanted younger, cheaper workers, so he took a buyout instead of waiting around to get fired. For the past 10 years he has worked as a consultant to companies that use products that BigTechCo no longer supports.
One reason he was able to start a new biz late in life is that he had saved aggressively when younger.

[Anonymous]

My boss is 67 yrs old. Nobody wants him to retire because of the knowledge and expertise he brings to the table.
He is very well respected in our industry. He will retire when he decides to retire.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Agree with the PPs above. When people go on about - oh it’s only lazy bums retiring at 65, I think they forget industries vary. If you’re a tenured professor or a govt paper pusher with a lifetime job or in some field that ends up being so high demand at 65 that you can work until you choose to quit, great. Don’t save. For many others out there including in fields that are always pushed in these boards like STEM, push outs at 50 or 55 are very real; lots of law firms are also now super strict with their retirement at 65 clauses. And while everyone says, so what go hang a shingle - let’s be real in fields like engineering and law the majority of the million dollar projects/cases you worked on for 30 yrs aren’t going to solo practitioners - with your own firm started at 50 or 65 you easily could be taking a huge cut from your salaried job bc of lack of business and costs like healthcare. I’ve seen one mechanical engineer after the next laid off in their 50s or early 60s. And frankly even in regular “business” jobs, the threat of layoff just increases as you get older and higher prices for the company. So if working until 80 is guaranteed for you, great. But realistically everyone should think thru what happens if there’s a “forced retirement” earlier than planned.

Meh. Expert witness testimony is a lucrative field for retired white collar workers. We just had one who is 80 years old. The firm puts them up, pays for food and travel, and they often charge $$ per hour. No need to stress about hanging your own shingle at 50.

You will have exactly 0 expert witness testimony in IT fields at 80. A guy who is 60 was just pushed out at my company. His brain simply can no longer work fast enough. Management found an excuse. I hear so many people say "so and so just needs to give it up".

Always think it’s interesting when the 30 or 45 year olds say that - that joe should give it up - as I always think, you wait buddy your turns gonna come sinner than you think. When I hear a 22 yr old say that it’s more “excuseable” bc they can’t even fathom being 40 let alone 60.

Yea, and this is exactly why I do not YOLO through my finances. Because as a 40yr old I see EXACTLY what happens in my field when you hit 50. that guy was extremely lucky to make it to 60. People in bleeding edge industries are stupid not to front load their retirement. It's like 19yr olds who go every other day to a tanning bed. Stupid in the long run.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why are people here obsessed about saving for retirement?
I do save for the future but not aggressively. I do not max my 401k.
I am not concerned about retirement because I plan to work well into my 70s possibly 80s if still alive.

Retirement is for blue collar workers and poor people. These blue collar jobs are often unpleasant, they take a toll on the body and require a
physical fitness that workers no longer have as they age. It makes perfect sense to call it quit and retire.

White collar don't often face the same situation. They even get wiser and better with age. Why retire if you love what you are doing?

Most successful people I know are not thinking about retiring. You find a lot of old men and women at the top of the business, corporate and
political pyramid in our society. They are still working.

I know my perspective might be unique here. I'm a research scientist. Maybe I'm a crazy scientist?

I am also a research scientist. I enjoy what I do. The pace can be frantic at times. And I absolutely plan to retire. Why? Well, right now, the work I do -- the research -- is geared to what others want/need. It is very applied. I am taking my science and building algorithms that with work within the customers constraints. That is what I have to do to get paid. I would like to do some more basic research (6.1 or 6.2 instead of 6.4 in terms of DoD funding guidelines). But, I know I can not get paid what I am making to do that.

I am currently 55 and have just over 1 mil in my 401K. I am looking to work to at least when my child finishes college, in 6 years. I figure I should have closer to 2 mil; my house will be paid for and worth close to 800K. Sell it, move to an area where I can continue working (central Florida) at a lower level of effort (and lower salary) to cover expenses while transitioning to retirement. Full retirement will begin when Medicare is available.

You’ll have to be putting away at lest $75k/year (which is over the 401k limit) and hope for at least 6% per year to go from 1 million to 2 million in 6 years. Last year was great but I’m negative YTD so 6% is pretty optimistic

Historically, the market doubles about every 8 to 9 years. I am over a million now.

[Anonymous]

Add me to the list of those pushed out within a month of my 50th birthday. I'll never get close to making that kind of money again.

[Anonymous]

Anonymous wrote:Because I don't want to be a greeter at Walmart when I'm 80.

Som greeters work because they want to. Rise above your hatred.

[Anonymous]

Anonymous wrote:Add me to the list of those pushed out within a month of my 50th birthday. I'll never get close to making that kind of money again.

Sorry . . . what industry.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Add me to the list of those pushed out within a month of my 50th birthday. I'll never get close to making that kind of money again.

Sorry . . . what industry?

[Anonymous]

Because I want to reitre at 35. And the miracle of compound interest.