http://www.nytimes.com/2014/03/22/your-money/coping-when-not-entering-retirement-together.html?ref=business
This article caught my eye due to my Public Finance course with Professor Gitter. The article deals with handling the benefits you can receive after retirement. With many countries having different systems, this one addresses the US system. It talks about a man and the lifestyle he wants to live after retirement but also balancing his wants with his wife as she is still working. Knowing the system we have is important for us much later in life. It will be interesting to see how much things change from now until our retirement time down the line.
3 comments:
I agree, this is definitely a system that our generation needs to be well-informed because we will face these decisions sooner than we think. Currently, this is also a topic that is popular today with 10,000 Americans retiring a day and expected to do so for the next 35 years, there is a great opportunity in the financial planning industry. Without being able to determine Mr. and Mrs. Ryan's utility towards their jobs and the activities they will pursue, I am assuming Mrs. Ryan did not retire first because she still enjoys her work. In theory, it might have been better for Mrs. Ryan to retire and get half of her spouse's benefit which seemingly would be larger due to his pension with MillerCoors compared to that of an interior design business. People do not always act in terms of what makes the best financial outcomes factors such as utility must be taken into account which is what makes financial planning so difficult, but attractive.
We have heard time and time again that the baby boomers are soon to retire and there is going to be a huge market in the retirement industry. As Martin said this is seen to be huge for the financial planning industry. Financial planners are going to have to keep their eyes and ears open in order be able to adapt with the quickly growing market and possible policy changes.
I wonder if the situation differs elsewhere in other economies? I think it's one of the driving gripes in the EU, where retirement age differs vastly and persons of other nationalities take issue with simultaneously sharing a currency.
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