<p>Had a friend mention that one of these days there will be a recession where there won’t be enough left of the middle class to pull us out of it. Not enough spending by the rich and the poor have little extra to drive the economy.</p>
<p>I had to wonder if there is anything to this? Will the lack of a large middle class really slow the recovery. Maybe there is nothing to his thought but it had me thinking.</p>
<p>The dynamic that’s probably more in play is that ‘Saving for a Rainy Day’ is being lost in our culture.</p>
<p>[U.S</a>. savings rate falls to zero](<a href=“http://articles.moneycentral.msn.com/Investing/Extra/USSavingsRateFallsToZero.aspx]U.S”>http://articles.moneycentral.msn.com/Investing/Extra/USSavingsRateFallsToZero.aspx):</p>
<p>
</p>
<p>One thought to consider is that with the majority of the middle class not saving for a “rainy day” let alone for retirement, that people will have to continue working into their 70’s. This fact will change the dynamics of social security and medicare. I foresee that over the next 20 years the age for receiving these two entitlements will slowly creep up to age 75. This makes sense as you consider that in 1934 when social security was first established that the average US male’s life expectancy was only around 65. If people work longer the middle class will survive. The big challenge will be to keep the older folks skills up to par. I foresee people in their 60’s going back to college for a two year refresher and starting a completely new career. How great would it be to turn older Americans into great teachers, etc. People will not be able to rely on pensions, social security, and savings. Also, if you are fit and able why would you want to retire anyway. There is only some much golf, mah jong, and shuffleboard that you can play. Lets keep the older folks in the economy.</p>
<p>My Dad is nearing retirement age. He is nowhere near ready to retire.</p>
<p>I don’t want to work longer. You put in 40 years in the job world and get back to me on how much you want to keep on going. I’ll be glad to hand my job off to somebody younger in a few years.</p>
<p>There’s an old adage that goes something like:</p>
<p>“If you do what you love for a living you’ll never work a day in your life.”</p>
<p>I remember both my father and my father in law as they approached retirement age. Each day until “the day” arrived was torture for them - they were ready to call it quits. (My FIL retired at 62.) The fact is that all jobs are constantly changing. When you’re young that’s interesting and exciting. In middle age you’re on top of things and it’s what you do. As you get older your interest in learning new skills and re-educating yourself constantly seems to diminish in most people, leading to frustration. I’ve observed lots of people in their 60’s and even 50’s complaining about the way their industry/job/employer had changed - they didn’t seem to welcome that change after they had attained competence or excellence the way things used to be. I think most people would agree with Barrons - if they have the choice.</p>
<p>I’m with Barrons. I don’t dislike what I do, but it takes too much of my time from all the things I’d rather be doing. This not-yet-older folk can’t *wait *to leave the economy! (which is why H and I save like the dickens, to give ourselves options).</p>
<p>I think people will want to stay in the game if they had a choice. Sure people look forward to retirement if they have other interests that will fullfill them. I know many retirees that provide great leadership in many civic and charitible organizations. I think if people also could change occupations and do something new, this would also be a great motiviation. I have done the same occupation for over 26 years and dream about starting a new career at some point. My dad use to tell me that when people retired from his company that most of them would be dead within a year. I wonder if this was somewhat due to the fact that these people really had nothing to live for. It will be interesting to see if retirement age starts to creep up.</p>
<p>Keeping up with the tech side of the work has been a real hassle. Sometimes I feel more like a tech worker than a consultant. Now you have to keep up with both your industry and the tech changes in our platforms.</p>
<p>Age of retirement is probably a function of the type of profession that you are in. In tech jobs, 62 is not the age that people start to retire, it is the age at which half of non-PhD workers have already retired:
[Science</a> and Engineering Indicators 2008 - Figure 3-50. Older S&E degree holders working full time, by degree level: 2003](<a href=“http://www.nsf.gov/statistics/seind08/c3/fig03-50.htm]Science”>http://www.nsf.gov/statistics/seind08/c3/fig03-50.htm)</p>
<p>I don’t expect to ever retire and I’m fine with that. Hubby will retire at 54 with a tax-free pension, lifetime medical/dental/vision/prescription, and a large annuity.</p>
<p>Tax-free pension? You don’t mean completely tax-free do you? Perhaps just state and local tax-free?</p>
<p>“Tax-free pension?”</p>
<p>Let me phrase that. NYC employees pay those taxes while working, so at retirement time, they have already paid state and local taxes, which are huge here. Sorry for the confusion.</p>