Does Retirement As We Know It Still Exist?
by Terry Johnston CFP
(Barrie, Ontario, Canada)
Terry Johnston CFP here the Blue Collar Financial Planner. The concept of retirement once applied to only the very well off until the early part of the 20th century.
The industrial revolution changed a paradigm that had existed for centuries.
Folks moved off the farms and into the factories, providing more goods, services, larger incomes (with more discretionary cash) and created more wealth for everyone.
The fact older folks could windup dropping dead on the job or being dumped by their employer because of their age was something both Unions and government found unacceptable.
To prevent that--Unions prompted companies to create private pensions and government latched on to the idea of a social welfare scheme to make sure the elderly wouldn't starve.
This system worked great when folks retired at 65 and died at 67.
Than the monkey wrench got tossed into the system--People began living longer. Not just a few years but in many cases decades longer. Add to that concerns for the the spouse of a pensioner. (Remember it wasn't very long ago that when the pensioner died so did the pension--leaving the spouse--in many cases in total poverty).
Pensions and social welfare programs were adjusted to fix this problem--but then became horrendously expensive. Now to the point of breaking. Government spending is completely out of control and it is only a matter of time before the system crashes.
Will that mean the end of civilization? Of course not, but there will be large problems to deal with.
What can you do to help yourself? First stop hoping that Wall Street and the government will come to your aid. The later won't and the former can't. Prepare you own plan for your own retirement--learn a second set of skills to offer the market place. If you can't find a job--create one!!
Consider starting your own internet business. During the colossal economic downturn--when every industry in the entire world--declined. One industry and only one saw an increase -- internet sales were up by 17%!!
Having your own internet business may mean you never really retire, but if you are enjoying life as you should. Does that matter? Probably not!
In this short space I can't expand on my points here much past giving you the idea to go look for yourself. So do some investigation.
The guy that runs this web site has a wealth of smarts, knowledge and experience. Pick his his brain!! He is happy to help.
Those who would like to know more about me please visit my web site. http://www.blue-collar-financial-planning.com/