PBS Special - May 30th: The Retirement Revolution
With the first wave of Baby Boomers set to retire soon, it's perhaps no surprise that the issue of retirement planning is becoming a hot topic in the financial media - especially as the risk increases that many of these older Americans may not have saved nearly enough for their golden years. Tonight at 10pm EST, PBS takes a closer look at the Retirement Revolution, in the hopes of uncovering a few lessons for today's generation of workers: "This episode continues exploring the challenges Baby Boomers face today and teaches viewers to assume personal responsibility - so they'll be able to plan for retirement on their own terms."
This PBS episode is part of an extended series hosted by Paula Zahn examining the issue of retirement in the U.S. If you don't know how much is in your 401(k) and are perplexed by financial jargon like "defined contribution plans" and "asset allocation decisions," this show might be one to watch.
[image: The Retirement Revolution]
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The media and organizations in the “retirement business” — mutual funds, insurance companies, real estate developers, and the like — have instilled in consumers the idea that retirement is going to cost a bundle. This is because they are marketing a "dream retirement" that few will actually be able to afford.
The ultra-high standards of living that people achieve today using credit cards and other types of credit are based on the assumption that they will have an unlimited future during which they’ll tighten their belts and pay all the borrowed money back. Unfortunately, people can't carry this lifestyle into retirement unless they become rich, and that’s unlikely.
One of the biggest misconceptions about retirement that pre-retirees have is that they assume they’ll be much wealthier in retirement than they are now. They have this notion that in order to retire they must wait for the day until they have millions of dollars and no money worries. But, where do they get this idea? Who said you need millions? [Clue: televison, radio and print media].
The fact is that most retirees in America don’t have a million dollars. The Social Security Administration estimates that Social Security is currently the major source of income for almost two-thirds of America’s retirees. For one-third of retirees, it is in effect the only source of income.
As a result, most people planning to retire will have to come to grips with the fact that they won't be retiring rich, like you see in television and magazine advertisements. Even PBS has jumped on the bandwagon: Note their photograph (apparently symbolizing retirement) of a gray haired man on an expensive sailboat that accompanies this news item. Maybe it's not so where the PBS folks live but where I live you have to be fairly wealthy to be able to retire with a big sailboat.
Not having millions of dollars doesn't necessarily mean you can't have a comfortable retirement, it just means that perhaps your retirement won't include a sailboat and other trappings of wealth. Successful retirement involves finding a retirement lifestyle that fits your budget.
Perhaps you’ll work part-time, downsize, or join the voluntary-simplicity movement. Maybe you’ll live full-time in an RV or shed most of your worldly possessions and spend your days traveling the world without a home base. The bottom line is that you’ll have to design a lifestyle that you find interesting and that’s within your means. You’ll probably worry about money from time to time, but not as much as you might think. The adage that money doesn’t buy happiness is often true.
Jonathan Edelfelt
Author of Who Said You Need Millions? Retirement Strategies for the Rest of Us
www.WhoSaidYouNeedMillions.com