Do you know millenials or younger ones like this: planning for early retirement?

[shootingstar]

https://business.financialpost.com/personal-finance/family-finance/all-the-frugality-in-the-world-wont-let-this-34-year-old-retire-at-45

The guy makes $70,000.  Do millennials and younger ones dream in a strange (unrealistic) way like this??

When I was his age, my career was starting off in a good way. I was doing all sorts of stuff, learning ...I was looking forward to work every wk. Seriously I enjoyed 90% of my jobs. Retirement was a foreign concept to me ...instead for old fogies. I didn't even think about retirement:  I had just bought a home a few yrs. before and still had a mortgage.

 

[maddmaxx ★]

Work is for dummies.

Everything should be free.

[Wilbur ★]

Maybe he read "The Wealthy Barber"? 

[a bunch of numbers]

The kid I work with is 25 and in his first job out of college.  He's already thinking about, and planning for retirement.  He's more realistic than the guy you're talking about.  He's saving a good portion of his check to 401k, plus saving into the health care account which he want's to have around when he retires.  I don't think he has numbers worked out as far as what he wants to get every year after he retires, or at what age he wants to retire, but he's definitely thinking about it and planning.  I'm like you, I wasn't thinking about that back then.  I remember the managers telling us to save at least 10% of our pay for retirement.  Not only could I not afford to do that, but I figured I had a lot of time before I had to worry about it.  Now I wish I had listened a little more.

[ChrisL]

No I dont know any young folks who think that way.  My SIL was asking about if he should participate in his 401 k and we recommended he start early so he did.  He's probably an outlier for kids his age.

[shootingstar]

1 hour ago, ChrisL said:

No I dont know any young folks who think that way.  My SIL was asking about if he should participate in his 401 k and we recommended he start early so he did.  He's probably an outlier for kids his age.

I believe the Canadian similar investment vehicle is the Registered Retirement Savings Plan (RRSP) to the U.S.'s 401 K.  Canada also has the Tax-Free Savings Account, which is not originally for retirement but good for saving in a TFSA without taxation, on $6,000CAN annual contribution maximum.  Both plans require Canadians to report annually to tax govn't authorities.  TFSA has only been around in past decade or something like that for Canadians.

I recall my father mentioned RRSP to me.  But I didn't do anything until I was working full-time. Even though I started a modest contribution, I still was puzzled and didn't start contributing  in an informed way until 5 yrs. later or so. So I was around 28 or so at the time.  I wasn't thinking about retirement. I just wanted to do something to help myself in...an absent-minded way.  I didn't even contribute some years because I was thinking more about a home.

 

[Further]

Most of the younger ones at work seem to think 15 or 20 years is plenty long enough to work. Some of the more ambitious ones have secondary income streams started that may allow early retirement, at least from the 40 hour a week job. 

[shootingstar]

29 minutes ago, Further said:

Most of the younger ones at work seem to think 15 or 20 years is plenty long enough to work. Some of the more ambitious ones have secondary income streams started that may allow early retirement, at least from the 40 hour a week job. 

It shocks me when I read of some millennials hoping for their inheritance from their boomer parents, etc. 

Myself and 5 siblings assumed we would get very little because parents were poor. So we each struck out on our own....

My youngest sister who is not a millennial but she is 10 years younger....wants to retire @ 55.  I actually think she's abit crazy because she has 2 young children under 11 yrs. old.  I think she's just tired of being the primary breadwinner.  But everyone else is trying to work as close as possible to 65.  Honest, I am relieved I've been working last 36+ years with about 2 years of unemployment.  Dumb as it may seem, it feels like an accomplishment itself to have worked this long so far. 

And I have honestly liked most of my jobs. I learned from every single job. So retirement psychology wasn't in my head until recently when watching close friends take early retirement.

[MickinMD ★]

22 hours ago, shootingstar said:

https://business.financialpost.com/personal-finance/family-finance/all-the-frugality-in-the-world-wont-let-this-34-year-old-retire-at-45

The guy makes $70,000.  Do millennials and younger ones dream in a strange (unrealistic) way like this??

When I was his age, my career was starting off in a good way. I was doing all sorts of stuff, learning ...I was looking forward to work every wk. Seriously I enjoyed 90% of my jobs. Retirement was a foreign concept to me ...instead for old fogies. I didn't even think about retirement:  I had just bought a home a few yrs. before and still had a mortgage. 

 

When I was in college, I wished I could be like the rich kids who didn't have to worry about coming up with money for the mortgage etc. from their jobs and could pursue their passions in art, music, and other majors that often don't earn a good living.  But retirement never was part of the desire to be financially independent - it was the freedom to accomplish things I wanted to do.  Throughout my working career, I did want to "retire" early, but only so I pursue things I wasn't able to pursue during my working life.

Your attitude was the same as mine.  I finished graduate school masters in chemistry at IIT in 1975 in the heart of a recession. A former professor of mine at UMBC gave me a low-paying job during 1976 to keep me in "spending money."  In Jan., 1977, I was hired at $16,000/yr ($66,500 in today's dollars) to do process development research for a subsidiary of Dow Chemical.  I looked forward to work and accomplishments.  When the high cancer rate among industrial bench chemists and the fact I could smell the chemicals I worked with during the week when I went for a run on Saturdays led me to move to teaching (my degrees and experience resulted in higher than normal pay in a good-paying county), I had the same attitude.

I was able to "retire" at 56 and did so mostly because of leg problems (now healed!), but I was basically becoming a student again, studying/playing piano 2-3 hours per day at Johns Hopkins University's Peabody Institute where I was required to take courses in music theory, composition, improvisation, history, as well as performance.  I also kept busy with other endeavors.

[Razors Edge ★]

Old Age Security - OAS kicks in at 65.

"Old" age at 65.  That must piss off a lot of CAnadians!

[12string]

They had better not retire early!  Our population is shrinking, so who's going to take care of me when I retire?

[ChrisL]

On 1/6/2019 at 8:53 AM, shootingstar said:

It shocks me when I read of some millennials hoping for their inheritance from their boomer parents, etc. 

Myself and 5 siblings assumed we would get very little because parents were poor. So we each struck out on our own....

My youngest sister who is not a millennial but she is 10 years younger....wants to retire @ 55.  I actually think she's abit crazy because she has 2 young children under 11 yrs. old.  I think she's just tired of being the primary breadwinner.  But everyone else is trying to work as close as possible to 65.  Honest, I am relieved I've been working last 36+ years with about 2 years of unemployment.  Dumb as it may seem, it feels like an accomplishment itself to have worked this long so far. 

And I have honestly liked most of my jobs. I learned from every single job. So retirement psychology wasn't in my head until recently when watching close friends take early retirement.

I don't think you can pin this solely on millennials.  It's been going on for generations.  People like to bash the mellinials these days but I'm sure the great generation was saying the same about the boomers.

 

[shootingstar]

20 hours ago, Razors Edge said:

Old Age Security - OAS kicks in at 65.

"Old" age at 65.  That must piss off a lot of CAnadians!

Yes, rather outdated terminology. But we must convey a sense of helplessness to dole out the money.  (And not to downplay the real needs of others for the money. Just saying it's to help justify to young 'uns why this money may be needed.)

17 hours ago, 12string said:

They had better not retire early!  Our population is shrinking, so who's going to take care of me when I retire?

Now, are you a millennial or the next younger generation , in disguise? 

[shootingstar]

16 hours ago, ChrisL said:

I don't think you can pin this solely on millennials.  It's been going on for generations.  People like to bash the mellinials these days but I'm sure the great generation was saying the same about the boomers.

 

They're just more blatant about their entitlement.  (which my response...who spent money on you for lst 20-25 years of your life?).

[Longjohn ★]

I have a son that could retire at any time with more income than I have coming in. He won’t quit working though. I’m sure he will be in high demand for a civilian job because of his skills and experience. He turned 38 last week.

[team scooter]

These kids watched family and friends work their whole lives only to lose everything when the economy crashed. It's not surprising that millennials are questioning whether working forty plus years before they deserve the right to rest would be met with resistance. However, the very key to keeping the giant industrial machine operating as designed is for people to keep working their lives away to buy stuff to keep the giant industrial machine operating as designed. My kids are all in their thirties and already have early retirement in their crosshairs too. 

[Longjohn ★]

The only people I knew that always talked about how early they were going to retire were the ones that not only didn’t retire early but worked into their seventies.

The guys that retired at 62 from where I worked didn’t say anything and then all of a sudden we were having a pizza party for them and they were gone.

[BR46]

I would retire right now if it wasn't for the cost of healthcare. 

[Razors Edge ★]

On 1/6/2019 at 10:35 AM, shootingstar said:

Do you know millenials or younger ones like this: planning for early retirement?

I am surprised he didn't just join the military and retire at 38.  He could have even had his college paid for.

[Scrapr ★]

1 hour ago, BR46 said:

I would retire right now if it wasn't for the cost of healthcare. 

a lot of the early retirees game the system a bit by keeping income below $60k (afair) to get ACA subsidies. 

[Razors Edge ★]

32 minutes ago, Scrapr said:

a lot of the early retirees game the system a bit by keeping income below $60k (afair) to get ACA subsidies. 

Heck, $60k is right square in the middle in MOST states.  Lots of choices for folks to "retire" and game the system.

[Parsnip Totin Jack ★]

1 hour ago, BR46 said:

I would retire right now if it wasn't for the cost of healthcare. 

I'm with you. I took early retirement at 52. Healthcare for the fams, pre-ACA, was $2,300 a month. I went back to work after six months to get employer provided healthcare at $330/month for same coverage. Five years to second retirement at age 65 and medicare. SS kicks in at 67. 

[shootingstar]

9 hours ago, Scrapr said:

a lot of the early retirees game the system a bit by keeping income below $60k (afair) to get ACA subsidies. 

Unless other Canucks here know something I don't, there's no real significant financial advantage, being retired after being employed in Canada, to keep a certain income  to get a lot of govn't subsidies.  You have be poor to get any subsidies within the Canadian system.

The 2 govn't retirement/pension related , Canada Pension Plan and Old Age Security @65 actually combined together keep a person at poverty level.  A Canadian actually gets abit more CPP and perserves OAS maximum if they choose to start receiving payments a few years after 65.  (That's only advantageous if a person has no company pension or a very small registered retirement savings plan to become a RRIF.)  

 

[KrAzY]

9 hours ago, Razors Edge said:

Heck, $60k is right square in the middle in MOST states.  Lots of choices for folks to "retire" and game the system.

Mexico is sounding better every day for retirement! 
 

[Razors Edge ★]

36 minutes ago, KrAzY said:

Mexico is sounding better every day for retirement! 
 

Or, as we call it, Texas.

[KrAzY]

24 minutes ago, Razors Edge said:

Or, as we call it, Texas.

Nope.. I'm leaving Texico and heading to the real thing