Life Is Too Short: Here’s Why Well-Off Americans Are Considering Early Retirement
It has been more than a year that American baby boomers have been attending Zoom calls early in the morning. The COVID-19 pandemic has forced everyone to stay indoors, and people have been working remotely from their homes over the last year. The deadly virus has taken a toll on all lives, and prospects of a bright future seem to be a distant dream.
Aside from that, the real estate values are at an all-time high. Therefore, the baby boomers are considering early retirement while conditions are still in their favor. If reports are to go by, around 2.17 million people in the United States at 55 or above are thinking of retiring earlier than they usually would have. What’s making them take such a decision? Find out.
The Changing Priorities
Of course, those who have garnered quite a significant amount of wealth can afford early retirement. The pandemic has not been that harsh on them as it has on those who are not as affluent as these guys are. Those who lost their jobs due to the pandemic or lost all the courage to continue had to retire before their time arrived.
Irrespective of a forced or a voluntary one, early retirements will rob the market of some immensely productive employees. Additionally, early retirements would surely affect the recovery that the economy has been going through in recent times. Quite a considerable number of people have taken permanent leave from their job leading to labor shortages in companies. It’s not clear if they would contemplate rejoining.
Some people have been completely frustrated with the monotonous work they have been doing for quite some time and have developed an inclination towards pursuing their passions. Some are battling serious diseases, which is forcing them to opt out of the corporate world. Even if they have mustered up the courage to continue, the last year has completely spoiled their zeal to make a comeback.
The Age Factor
People who are like Cohort have hung to their jobs longer than those in Europe. They were willing to continue and were an asset to their companies. The potential exodus of the people and the rising number of entrepreneurs aiming to retire much earlier than expected have forced the companies to worry as they have been relying on their expertise for pretty long. Additionally, burnout among teachers and healthcare professionals is the reason they are making an early exit. This has led to shortages in the field of education and healthcare, respectively.
The financial advisors believe that their clients have developed a life-is-short kind of attitude. They have a substantial amount of money under their belt, which would comfortably see them through their retirement period. Making a comeback is probably not on the cards, as it might be a tough pill for them to swallow.
The Uncertainty From the Pandemic
The truth is, they neither have the will nor the energy to continue anymore. There are folks with an impressive portfolio, retiring just at the age of 48 since to them, the prospect of continuing traveling from home to workplace 10 to 12 nights in a month doesn’t attract them anymore.
For some, they had to work for more hours and were being paid less. As a result, the wish to stay on died. The pandemic has dragged for quite a long, and no one can say for sure for how long human life will continue to suffer. This uncertainty has certainly played on their minds.
The number of people who had expectations of working beyond 67 had a drastic cut-off. The figure now stands at just 32.9%. This is according to the data from a survey by the New York Federal Reserve. 2.7 million employees. It found that people in the age of 55 or above planning to apply for Social Security. The unexpected increase in shares and real estate values due to an economic crisis is actually smoothening the path of retirement for folks who have invested. The Great Recession of 2008 has also played a major role.
The exit of senior workers who were famous for their experience, productivity, soft skills, low absenteeism, etc., will hurt the companies and the labor market. The healthcare sector might also suffer in the days ahead, and that is alarming.
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