It has been said that one in every four older Americans is having a hard time paying their rent and mortgage. Life has become so difficult that many Americans are not even contributing to retirement accounts. To be able to survive in this shaky economy, people are resorting to delaying retirement. They believe that if they work for an extra year, it means giving up one year of leisure and you get to earn, save and also increase social security benefit. Here is some information to guide you as you contemplate on whether to retire or work a few more years.
Consider the housing market; the economy is so bad everywhere. You can sell your house and move to a place where the cost of living is cheaper. Selling your house should not be difficult because right now houses are gaining value. If you have totally paid off your house, then you can plan on selling it at a higher price and move to a better location. If selling it is a problem, try renting it out for the time being till the prices go up.
If you take a look at your retirement account you will notice that you have lost almost 40% of what you should have. In a survey 50% of the people said their 401k has lost its value and they agree that the economy is in a bad shape. What gives all of us hope is the fact that the market keeps on fluctuating. When you retire you will be using the saved money in bits, therefore when they economy recovers your savings will be boosted as well. If you plan on retiring soon, remember that you are not in a hopeless situation.
Many people have lost their jobs recently, and this means earlier retirement for some. We expect to face a labor shortage in the near future and those unemployed will resume work. At the moment if you are considering retirement, you probably have noticed that the issue is not the money but rather emotional and psychological distress. Decide to retire when your mind is decided and you feel at ease.
Some tips people use to prepare for retirement in this economy is by cutting costs. You have to cut down on the amount used for vacation and luxuries. In another survey 61% of the people said they have reduced eating out. Have a rough estimate of the amount you would like to save up for retirement. Any little money you save should go into this retirement fund. If you company offers a pension, take advantage of it.
As people decide to postpone retirement plans we are left wondering, are we living in times whereby not retiring is a fact? Only time will tell.