In Australia the share market and property market are looking stronger, and it seems that baby boomers may be feeling the love!
Around 5 years after the GFC encouraged many people to continue working longer than they had anticipated so they could continue to add to their superannuation, baby boomers seem to have regained confidence in their ability to fund their retirement.
According to the Australian Financial Review (12-13 October 2013) an analysis of labour market data has suggested that people aged 60+ are leaving the workforce at a higher rate than younger workers. Mr Shane Oliver, chief economist at AMP Capital, was quoted as saying
“They’re not giving up work because they’re discouraged by the jobs market. They’re giving up work because they feel they are comfortable enough to retire.”
Do you think people have been hanging out for an improvement in their finances before they had the confidence to retire? Or is it that the bump of baby boomers is moving forward and many are now reaching 60 and are ready to retire, just as they had planned to do?
Perhaps there is a tipping point, when everything comes together to make retirement seem like the best option. Perhaps it is as we expect, when the alignment of finances, family responsibilities, and readiness to leave work all come together. Others may need the push of a redundancy, and to realize it is the right time to go. Maybe a secondary income enables you to move from a traditional job to a different way of working. It could even be a sudden windfall – lottery, inheritance, a successful investment.
I suspect for me it is financial security…Do we have enough to live comfortably for the next 30 years? That question in itself shows both profound optimism and some pessimism, but let's go with the optimism and presume we have 30 years to worry about! There is also a bit of "I'm not sure I want to completely retire" thrown into that mix as well, an awareness that I enjoy my work and would like some of my work to be part of my next stage of life.
What was, or will be, your tipping point to decide that you have the confidence to retire from your main source of income?