When I'm Sixty-Four
On October 30, I am going to do something I have been waiting 50 years for: I am going to see Paul McCartney at the Greensboro Coliseum, thanks to my son Russell, who says I give him way too much credit for having the ability to use Ticketmaster. Like most people my age, the music of The Beatles was a big part of the soundtrack of my life. The first math problem I remember doing, probably with the help of my sister, was calculating how much of an age difference there is between Paul and me. (For the record, it is 17 years; his current wife, Nancy Shevell, is two years younger than I am, so I guess there really was a chance.) After The Beatles broke up in 1969, I became a fan of Wings, but then I drifted away as Paul seemed to get a little goofy for my taste. But if anyone had told me I’d be going to see a Beatle, any Beatle, performing at the age of 72, I would have thought they were nuts. 72 is old, isn't it?
No, not any more, not for the estimated 76 million Baby Boomers in the United States.1 And certainly not for Sir Paul, who wrote the lyrics to “When I’m Sixty-Four” when he was only 16, and inaccurately envisioned “doing the garden, digging the weeds, who could ask for more?”2
A recent survey of 1,856 working retirees done by Bank of America/Merrill Lynch looked at some of the reasons people are working during the traditional “retirement” years. The reasons are surprising, with only about 20% of the working retirees saying they work because they have to in order to support themselves. The top reason for working was “to stay mentally active.”3 According to the Alzheimer’s Association, studies do indicate that this type of activity might lower the risk of Alzheimer's and other types of cognitive decline4, so this is an encouraging trend among the Baby Boom generation.
In addition, according to the Ewing Marion Kauffman Foundation, a private foundation that works with education and entrepreneurship, 23.4% of new entrepreneurs in 2012 were between the ages of 55 and 64, up from 14.3% in 1996. Much of this increase was fueled by the Great Recession; the ax fell first on older (more expensive) workers, many of whom could not find work and started small businesses. Conversely, entrepreneurship among young people between the ages of 20 and 34 dropped from 34.8% to 14.3% during that time frame.5
When making a decision regarding part- or full-time work or business opportunities in retirement, it is important to consider the effect of additional taxable income on your retirement benefits. The additional income you earn can increase the likelihood that you will need to include a portion of your Social Security benefits as taxable income. It would be beneficial to have a Social Security analysis done, along with a complete analysis of your retirement assets, in conjunction with this decision. We can “Help!” (A little Beatles lingo there. My colleagues can look forward to a lot of that for the next few months!) Give our office a call at 336.544.6800 and ask for a free Social Security analysis or review of your portfolio!
1 “The Boomer Stats. A Special Feature of Baby Boomer Headquarters: www.bbhq.com.” 2 “When I’m Sixty-Four.” Wikipedia. 3 “Busting the Myths About Work In Retirement.” Richard Eisenburg. Forbes.com. June 5, 2014. 4 “Prevention and Risk of Alzheimer’s and Mementia.” Alz.org research center. 5 “Are Millennials Really the Entrepreneurial Generation?” Scott Shane. Entrepreneur.com February 4, 2014.
“When I’m Sixty-Four,” released by The Beatles 6-1-1967, Written by Paul McCartney and John Lennon, Produced by George Martin
“Help!” released by The Beatles 7-19-1965 (US), Written by Paul McCartney and John Lennon, Produced by George Martin
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