Trends and the end of Retirement – Part 2 | Stock Market Charting

Trends and the end of Retirement – Part 2

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Part 1 was featured yesterday.

The population in developing countries will continue to grow. This will help balance on consumer spending during the decline of the peak consumption in the late 2015 to 2025 from most of the industrialized and wealthiest countries in the world. Most of the consumption will shift to the developing countries such as India, but Africa will still be in crisis.

Real wages per capita will continue to rise while profits will tend to decline. This marks the turn of lower wages for employees, to the expense of profits overall. Business will now be depending highly on their skilled labor, as replacement for retiring workers will be coming in through immigration from outside sources, which are more educated and experienced with new technologies.

Some sampling reflects those who do plan to retire do not have any savings at this time. Most Social Security benefits will not supplement sufficiently to cover the rising cost of living during retirement over the next 15 to 20 years. Most Gen X’ers will not be able to compete against the more experienced and skilled baby boomers.

Baby boomers looking at retirement do have some options. They can liquidate their homes in favor of smaller homes or apartment living. Cut down on travel and other expenses. I don’t believe that after working 35 to 40 years that this option will be what one would want, but that is an option. Financial planning will also be helpful, yet with the retirement draw down by 2015 the returns may not be enough, and other supplemental actions will have to be taken in order to build a stable future income.

Real estate in 2015 will also receive more declines being that there will be less of a demand. Health care such as retirement communities will see some increase but not as much because cost for this special retirement housing and care, will also rise. Less consumer spending will lesson demand and supplies will be handled on order to fill basis.

Technology will take up the slack on the fill to order, in that machines will be set up to manufacture other machines. Let us say you order a computer, when the order is taken then it is merely inputted into a machine which will build it on site and process to shipping.

What this also means is that one will truly experience and enjoy the Golden Information Age. That rapid telecommunications, less manual labor, and more focused specialized areas will develop, giving everyone more of the good life, but it will come at the cost of your labor.

This pretty much changes everything. Should you want to still retire in your sixties, you will need to have a plan in place that will more than support you for at least another 20 years after retirement. This will most likely come as a shock to some but not to those who have looked forward into the future with realistic expectations.

Cost of living may level a bit, but will continue to rise. So if you are living at a cost of 40K now expect to spend 60k when you retire to just keep up with your current lifestyle.
There maybe arguments generated by “financial planners” but most of them are not seeing past today’s statistics.

Just remember, the draw down from retirement plans will affect your returns, over the next eight years. The way to figure what you need to retire is simple. Take your current income plus your expenses and add 20%. If you have a lifestyle of 40K per year and your living expenses are 15K add them together (40K+15K) should be about 55K then multiply that by 20% (55K*.20) 55K + 11K = 66K is what you need to continue your current lifestyle over the next 10 to 20 years.

Life expectancy rate for men in the US is currently at 74.4 and for women in the US it is 79.8. (Measures from 2003) In either case the raise in retirement age is not for enjoyment of going into your golden years where you can do what you want. You will either be restricted in movement by economics or health. Health technologies will extend life expectancy over the next 5-10 years to as much as 15 more years on top of that. Which means that you most likely be broke before you expire.

Now is a good time to start looking at other sources of income that will more than supplement social security. Remember, that congress is also looking at cutting off your social security benefits if your pension or 401k yields more than 70K a year. Your retirement lifestyle is at risk.

The good news is that the internet which has a global reach; will also experience a boom over the next few years, taking those who have already established businesses into a whole new vista of possibilities the likes which no one has seen before. This is the scope of the future, those off the information highway, will suffer due to their own ignorance, and not because this information is not available.

Should anyone doubt these trends, you can research them through many agencies, such as Labor Statistics, Censes Bureaus and recent breakthroughs in Stem Cell research.

Life is expensive. There is another way to live, that doesn’t cost as much, but it isn’t any good.

Part 1 was featured yesterday.

About the Author

John Tebar Life Coach, Business Consultant, Entrepreneur, Author. Free weekly newsletter at http://holisticlifeplanningandresearch.com

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December 04 2007 12:42 am | Stock Market Charting

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