Recently I have taken notice of the number of seniors that are still working in various jobs, even though most or all would seem to be of “retirement age.” They are working in grocery stores, the post office, accounting firms, and in an array of other jobs covering the spectrum from blue-collar laborer to white-collar executive. Some of them are surely working out of necessity, having overestimated their retirement cash flow or underestimated their retirement expenses. Others are simply working by choice - to provide structure to their daily routine or to simply break up the monotony of full-time retirement.

I have no firm numbers or statistics to support this claim, but I believe that “most” people of retirement age (65 or older) continue working in some capacity if they are physically able to do so.

That got me thinking about traditional retirement planning, which goes something like this:

1) Work hard and save as much as you can during your prime working years (25 to 60 years old). Put as much money allowed by law into retirement accounts such as IRAs, 401Ks, SEPs, etc. and do not touch the money until you can do so without penalty.

2) Plan your retirement carefully, lowering your “lifestyle overhead” as much as possible and ensuring that your retirement “income” will exceed your living expenses.

3) In addition to your normal retirement savings that will cover your living expenses, be sure to have additional savings in the event of illness or large unforeseen expenses that could dramatically impact your retirement budget.

And while these basic guidelines to successful retirement planning have been proven effective over time, I have a big problem with the idea that we should spend our prime working years (which also happen to be our prime “living years”) hoarding cash and depriving ourselves so that our “retirement years” can be as enjoyable as possible.

What about now? Will I enjoy a dream vacation more at 65 than I will at 35? Will I be able to experience more of life’s pleasures at 70 than at 40? I am pretty sure that my 30s and 40s will offer me a better opportunity to seize and enjoy some of life’s most precious experiences. And that’s not to say that people in their 60s and 70s can’t as well, but I would guess that most of them would agree that they would have lived more fully in their 30s and 40s if given the opportunity to do so.

Most people, in fact, would agree that working less and “living” more would generally be a good thing. So I would suggest applying some of the basic retirement planning advice to the here and now. Specifically, try some of the following in your 20s, 30s, and 40s:

1) Cut your current living expenses wherever possible. Could you live in a cheaper house or apartment? Could you drive cheaper or fewer vehicles? Could you cook meals instead of eating out?

2) Apply your living expenses surplus to a “recreational savings account.” In addition to your traditional retirement savings, create a savings structure that allows for extended vacations or adventures that will create lifelong memories.

3) Structure your career path so that you have the time to enjoy time outside of the workplace. If your career does not allow extended absence from the office, plan for gaps in employment when searching for new jobs. Create your own “vacation time.”

Is any of this advice entirely practical and realistic for most people? Probably not. Many things make significant change difficult, if not seemingly impossible. Children, tuition, and fixed medical expenses are just a few that come to mind. However, there are some truths in there somewhere and many people could gain from altering their current approach – myself included.

Tags: early retirement, life fulfillment, lifestyle budgeting, working less

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