Retirement in the Age of the Ownership Society: Keep Working

Bush may not have gotten everything he wanted with his “Ownership Society” gambit – the privatization of SocSec being his biggest defeat – but he got more than he should have and his anti-middle class policies are already bearing fruit.

In the WaPo yesterday, business columnist Martha Hamilton explained how the whole concept of “retirement” has changed in the last few years.

Here’s the harsh reality for those of us who have become worker-capitalists, responsible for funding our own retirement: We can’t afford to stop working at normal retirement age.

Typically workers have retired around age 62 or 63, although most anticipated staying on the job till age 65. But that will be way too soon for the many workers who haven’t accumulated enough in retirement savings accounts.

One in four workers currently in their 50s will need to work an extra two years because retirement won’t be affordable, according to a survey of employers published last month by the Center for Retirement Research at Boston College.

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But the truth is that finding or even retaining a job after the age of 40 isn’t always easy. An earlier study by the Center for Retirement Research found that one in five adults age 51 to 61 lost his or her job between 1992 and 2002.

This is usually what is known as a Catch-22: you need a job to retire but if you retire there are no jobs. Even Hamilton’s dismal scenario is rose-colored if you include some factors she didn’t: Continue reading