I’ve been asked to write an update about retired life after working at General Motors for 33 years and being retired for the past 5 years.  That last part is hard to believe.  Five years sounds like such a long time ago.  When I visit the shop, I can see how long ago it really was when I see all the faces of strangers who are now doing the jobs of my former fellow employees.

Normal attrition has been speeded up by special programs to encourage the veteran employees to consider retiring; perhaps earlier than planned with the special incentive of a cash buyout.

When I retired in November of 2003, things were a lot different than they are today.  While I have never regretted retiring and starting a new life in Florida, I can understand why many people don’t share the same enthusiastic attitude.  The climate of today’s economy has made an impact on retirees and their decisions as to when they should retire.

When I retired:

·        Home equities were rising at a phenomenal rate. 

·        The house I bought in Florida nearly doubled in value in less than two years. 

·        The investments in my portfolios were climbing, and the security of lifelong medical care was a comforting thought. 

·        Inflation was at a normal and comfortable level.

I don’t need to tell you what has happened to home equities and the stock market in the past five years.  The comfort of a strong medical plan is now appearing to be a little shaky at best.  In an AARP survey in April of this year, they found that nearly 20% of people in the 55 to 64 age group planned to delay retirement due to the economic downturn.  The number was closer to 25% in the 45 to 54 age group.

Of the 1002 people who were surveyed:

About a third of the 55 to 64 year olds blamed shrinking portfolios and 401k accounts as the reason for retirement delays, and 18% blamed the falling home values.

·        Those in the 45 to 54 group were nearly completely the opposite - with a third of them blaming the home equity drop for their hold on retirement plans, and 19% blaming their falling values of their investments. 

Given this information, it seems that the confidence of retiring comfortably with security and peace of mind hinges on the rise and fall of the stock market.  I read a statistic that said 28% of potential retirees postponed retirement plans because of the downturn in their investments in the stock market.  Also, nearly half of the workers polled in another survey felt they would not be able to cover medical costs as they got older.  So the question of the day is – Should I retire and when?  Each of us has a different set of circumstances. 

When I retired, I had two daughters who were still in college, and we adopted two more girls who were ages eight and nine at the time of my retirement.  Now one daughter just got married this past June, and the other one is in her last year at Central Michigan University.  The two younger ones are entering high school and middle school this fall.

In case you weren’t aware of it, college education isn’t free and neither is a wedding.  All the normal activities and expenses of two younger children can add up too.  Gone are the days of just working a few weekends or daily overtime to cover extra expenses.  I have been fortune that my wife is teaching school, and along with the investments I made in sports memorabilia over the previous 20 years, I have been able to cover these extra expenses.  I understand that everyone has a different situation and plan for their retirement.

Would I trade my first two years of retirement for a little extra money in the bank and larger 401k portfolio?  Absolutely not!  Money can not buy the time I have been able to spend with my children, and the freedom of doing pretty much what I want while I am still healthy enough to do whatever it is that I desire.  Whether it is playing softball, coaching little league, doing odd jobs around the house, spending time with friends and family, traveling, or doing

absolutely nothing at all - it is my choice, and that is something money can’t buy.

Imagine if you will – it’s a very hot and humid summer day.  You’ve been out mowing the lawn for a couple of hours and you’re completely exhausted.  Sweat is dripping off your face and arms.  Every step, you feel like it is the last one you can make.  Finally, you realize you are finished.  Then you lie down on that hammock tied up under the shade tree, and the breeze provides a cooling effect on your tired body.  Someone gives you a large slurpee to drink.  Wow, does that look good!  In your excitement and anticipation of the joy it will bring, you take the top off of the cup and begin to chug its contents.

It tastes so good and is so refreshing you have a hard time stopping.  Moments later you are hit with – brain freeze!  Your thoughts run the gamut from, “What did I do?” to “How long will this last?” and finally “Why did I do that?”

Retirement can conjure up those same thoughts if you’re not prepared financially, emotionally, and

physically.  Do your homework and really ask yourself - Can I retire with financial confidence, and am I really ready emotionally to retire?  Physically you are probably only going to get worse than you are now.  So you must ask yourself, is the financial segment of retired life more important than the physical part?  You can work until you’re 70, but will probably not be able to enjoy the benefits of your labor as you would at age 62.  Your heirs will appreciate it though!

When to retire?  Only you can decide.  Everyone has a unique set of circumstances and plan for life.  Make sure you prepare so that plan can come true.  When you are ready, you will know it.  Don’t retire just because everybody else says you should, or because it looks good.  Without thinking it through, you could regret your decision.  Remember that slurpee looked pretty good too!   

Steve Knapp, Local 730 Retiree

Punta Gorda, Florida