Delaying and Changing your Retirement Plans

In light of the unstable economy and constant debates going on in Congress, many people are starting to make changes and updates to their initial retirement plans. Prior to this, most had planned on working until age 62 and then relocating to another state to live out their retirement years. Unfortunately, most have had to put these plans on hold or change them all together.

Not being able to retire as planned has frustrated a lot of people. Many have worked for twenty five years or more, and feel that they have earned the right to retire the way they want to. For some, current economic conditions have forced them to delay their retirement plans for two to three years. This may not sound like a long time, but to someone who has already worked twenty plus years, these additional years seem like a lifetime.

Recent surveys conducted by AARP and other similar organizations, revealed that many ‘soon to be’ retirees don’t feel very confident about their financial futures. Some are very concerned about the financial state of the social security fund. For years, both democrats and republicans have been saying that the social security fund will eventually run out of money. This statement has left many ‘soon to be’ retirees wondering if there will be any money left in the social security system when they retire. Because of this concern, many have started making changes to their initial retirement plans which has included looking at alternative ways to generate income. Some of the options they are looking at include starting a small side business, and purchasing distressed properties and flipping them for a profit. Although most don’t have any personal experience managing real estate or a business, they are willing to learn and do whatever it takes if it means having financial security.

Another reason many ‘soon to be’ retirees are updating their retirement plans is because they are concerned about their pension. Their concern stems from the fact that so many companies today are making changes to their pension plan -- which in most cases does not favor the employee/retiree. This has resulted in many individuals taking more control over their own investment portfolio. Which has meant making their own investments and taking courses in financial management.

If things don’t change economically in this country soon, there will be more individuals delaying their retirement. Although this will provide these individuals a little more financial security, the decision to delay retirement will have a negative impact on the overall job market. When a person retires it creates an open position, which is how the cycle of employment works. If there is a delay in more people retiring, then there will also be a delay in more job creation.

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