GFC stands for Global Financial Crisis. It is not something that we have to guard against happening, but rather realize that it is already here. Add the recession that has been nipping at our heels and it is understandable why some people are postponing retirement due to the GFC.
At one time, Social Security was the common thread that allowed retirees to live well into their later years. That no longer being the case, people are in need of supplemental income just to get by. Medicare and Social Security are simply no longer good enough.
Sadly, those times no longer exist. The baby boomers of the 1960’s felt as if they had been born into an era of Camelot, when wanting for nothing would be the rule. Foolishly, these young people worked toward retiring at a feverish pace, only to find it was not there. A few who persistently donated to a nest egg could could be found considering retirement but some would work to the full retirement age of 67. That is the age when full benefits kick in.
The idea of retiring is followed by multiple questions. The global financial crisis that we are presently in has actually caused some to fear withdrawing from their present job. It does not take a mathematical genius to see that the cost of everything is on the rise except the money we are expected to live on.
Due to advances in medical procedures and medications, people are living longer. Money that once was expected to last twenty years or less, now has to last nearly 40 or more. The currency of many countries is not enough to keep up with rising costs.
There are some moves that can be made to make retirement years a lot easier. Some have put their large homes up for sale and buy small houses that are much cheaper to maintain. Others are investing in income property and allowing that to supplement their income. Of all the aspects to be considered in retirement, the worst ones have to do with finances.
Employees with pension plans and 401k’s are more fortunate than many. People who were self-employed are finding their business falling off at a time when the income is needed most. Again, the prospect of selling that business will realize much less profit than it did in years past. Postponing retirement due to the GFC is something that is happening more and more. Delayed at least until some form of supplemental income can be attained.