There are NO New Retirement Rules

I truly believe that there was no good old days whether we are talking about life in general or personal finances so when I saw the article titled, “7 things to know about the ‘new retirement’” I knew it was going to be terrible.  It didn’t disappoint.  I found the article on CNBC, but seems to be written by Dana Dratch at Bankrate.

Can anyone tell me if any of these rules are new:

  1. You are on your own
  2. Start planning Early
  3. Money Can be Accessible
  4. You can Contribute to an IRA
  5. Consider Health Care
  6. Prepare to work longer
  7. Think Beyond the money

Was there ever a time you weren’t on your own? Was planning early ever a bad idea? Did anyone ever say money shouldn’t be accessible? Of course I can contribute to an IRA (obviously the ridiculous slideshow doesn’t talk about situations where the IRA contribution may not be deductible).  Oh wait a minute I am NOW supposed to think about health care? If I don’t have enough, I will have to work longer…I never knew that to be true back in the day.  and finally I will throw something in because it has nothing to do with this terrible article, but 7 sounds better than 6.

Retirement, in it of itself, is a new institution because Humans didn’t retire, we just sort of died.  Notwithstanding, who the hell approved this list? It could have been published yesterday, 10 years ago or 20 years ago prior to the internet and it would read the same.

Is all my stuff gold? NO WAY, but I don’t get paid to write nor do I have editors that approve my stuff…although maybe I should lol. I am shocked CNBC which has fantastic content would allow this drivel to grace its pages.

Am I wrong? are any of these rules “new”?

12 Responses to There are NO New Retirement Rules

  1. Does any of the journalism today actually title their topics in an accurate way? Not many as that does not sell. Investing for retirement is really pretty easy to understand, it is just hard to execute on.

  2. Good points! I think I would add one, It is up to you. If you do not take care of yourself, but expect anyone els will either. Maybe that reduced it to one rule.

  3. They don’t sound new to me, just practice. The sad thing is that people don’t realize these rules aren’t new and aren’t saving for retirement either. Scary!

  4. Evan, maybe those 7 points are new for Dana or for 5 year old kids. In nowadays almost anybody knows about the retirement plan.

  5. I disagree with Evan, and agree with the original author, Dana Dratch. I think some of the ideas ARE new, or at least newer.

    Money can be accessible — Roth IRAs are a relatively recent addition to the retirement planning landscape. Money in a traditional IRA is accessible in a few very specific very limited circumstances. Money in a Roth IRA is accessible at any time for any reason, as long as you only withdraw your original contribution amounts.
    That is different.

    Health care: It’s much more of an issue for future retirees, for a variety of reasons. First, the cost has soared, rising a lot faster than inflation. We live longer than our parents’ generation, so that is more years in which we will need health care. The rate of Alzheimers has increased significantly, partly because we live so many more years, so the probability has increased that we will need nursing home care at some point in our life.
    Example 1: Healthcare costs rise average of 5% year. Your pension provides you with healthcare, and prescription co-pays are small and affordable. You expect to live to age 75, and don’t expect to need nursing home care, and Alzheimer’s doesn’t run in the family.
    Example 2: Your company’s healthcare for retirees has been changed. Now you pay 30% of the cost, and the costs rise quickly as you get older. Having survived a heart attack, you expect to live longer than your father did (his heart attack killed him), maybe to the ripe old age of 87. You have four medicines you will take for the rest of your life, and your co-pays are high. Since you will live longer, you have a greater risk of Alzheimer’s, which means you have a greater possibility you will need assisted living. You have to plan for these possible costs.

    The safety net that the government has provided for the last few generations has frayed, and has big holes in it now, thanks to the TEA Party radicals. We are more on our own now than at any time since the 1930′s and the Depression. The author had that right.

    • Maggie,

      The Roth IRA has been around for 14 years…not exactly new in my book.

      Notwithstanding I think your healthcare contention is 100% correct. Both examples are pretty well articulated and make sense.

      The last shot at the Tea Party didn’t really make any sense to me, but that’s fine.

      So healthcare is the only thing she brought to the table as new.

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