Posted by Rob Minton
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I stumbled across an article on the Web this morning about retirement plans and this recession. The article's headline was "Time is on Your Side."
The gist of the article was that investors who have retirement in their sights but have been derailed by their retirement plans' losses shouldn't worry -- "adding just one or two more years on the job can put them on pace for retirement," the article says.
"Just" one or two more years working for somebody else. Like it's a good thing.
I have always said that time is our most valuable asset. Money can be replaced; time can't. This article really puts into perspective the real loss the financial crisis has caused. According to the article, a 60-year-old who makes $100,000 per year at his job and was going to retire at 65, now must work until he's almost 68.
The article makes it sound like it's no big deal. But this sort of news would be devastating to me. I think that it's terrible for someone who WAS just five years away from being able to relax and enjoy his family, maybe spend time with his grandkids or travel, gets told "Boom, you gotta work for almost three more years now."
It's a perfect example of why we all need to work toward financial freedom. At whatever age. It's never too early to start, and it's never too late. I know I hated being dependent on a job in my late 20s. To be dependent on a job at 68 would be unfathomable to me.
The thing is, this sort of article should really hit home with people ... but it won't. As sad as it is that so many folks nearing retirement age are going to remain dependent on a pay check for longer than they wanted to be, it probably won't be the financial lesson it should be.
People see retirement as a long way off, and they keep procrastinating when it comes to their financial freedom. But the truth is that the longer they wait to take their financial freedom into their own hands, the further they put themselves away from retirement. The article's headline is wrong.
Time is precious, yes, but it is NOT on your side.
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