Economist Theresa Ghilarducci of the New School points out the silliness of this idea in Olen’s article.
“Working longer is a retirement plan like winning the lottery or dying earlier is a retirement plan. Being able to work longer is not a plan. It’s a hope.”
Keeping this illusion alive for most clients is simply not being honest with them. Advisors are better served by telling it like it is.
WP spoke to Glenn Szlagowski of Assante Financial Tuesday morning about this very subject. He was crystal clear in his concern for boomer retirees in particular.
“Boomers are in shell shock or denial or both,” says Szlagowski. “Our generation [Glenn’s one of them] has moved to nicer housing in a better part of town, bought grandpa’s cottage in Muskoka ( Need a boat and a nice SUV for that), are putting 2.5 kids through university and swore off stocks in 2008 during the U.S. Financial Crisis.”
“Boomers are in denial that we are aging at the same pace as of all of humankind before us. We may be healthy. But time does indeed march on. When the majority of boomers reach age 60, panic will likely set in.”
Olen finishes with a truism advisors are wise to share with clients.
“Baby boomers are going to retire. It’s time we admitted it.”