I dreamed a few nights ago that friends back home were encouraging me to write a book about retirement.
Why do I consider my own retirement such a strange thing? Is it guilt; the feeling that I don’t deserve to not have to work? Is it the ingrained habit of conformism, or the fear that if I don’t work for a living I will starve, or that I will be useless to society? Perhaps the event of retiring from the work-week lifestyle is as much a major life event as divorce or loss of a loved one, because it is not just losing a job: it is losing the life-long assumption that one must work for a living in order to be useful.
Although many people describe their initial experience as feeling free, elated, and grateful, I feel incredulous, as though this can’t actually be happening to ME. Why?
Because to retire early is to go against mainstream advice. Because I have decided to retire before full retirement age, I am considered a non-conformist, even more so because I don’t have enough money to retire. I would never have enough, which is why I decided to retire early; and I was going to make myself physically ill trying to make and save “enough” money.
“You can’t retire early if you don’t have a lot of money.”
There are few magazines or other information venues that cater to people like me: folks who would never have enough money to retire in the United States, or even to grow old and work less. Articles with titles like “Is Two Million Enough?” or “When is it Wise to Keep Two Homes?” are absolutely useless to someone who needs to know how to simply survive—now, and after she is too old to work any longer. In fact, there is a growing trend in the media to convince Baby Boomers that “70 is the new 60,” exerting peer pressure so that folks considering early retirement will think again.
And it’s not getting better
In fact, there is a trend in politics to “persuade” people of retirement age-namely those who don’t have much money – into believing they must work until they die.
The economy is winding up for some big changes, and none of these changes are good for the majority of people. We are being pressured to continue working, and it’s not for our personal benefit.
Here is something to consider: Retirees have much to offer the world (and themselves) by repurposing their lives in productive ways other than working for money, especially when it can so easily disappear. Working for money is not the meaning of life. The advice of the dying to the living is: Choose to LIVE.
Where are the media venues that provide real advice for the people who actually need it? Maybe, as in the dream, I will write the advice I needed to read myself. Here is my list.
Ten Things You Need If You Want to Retire Early But Don’t Have Enough Money
1- Good Health
You cannot be dependent on pharmaceutical prescriptions for your daily survival. Prices will only increase. But the main danger of depending on prescriptions is this: they’re linked to health insurance. Health insurance premiums are what bankrupt retired people on a fixed income.
Health is indeed wealth: staying away from drugs, doctors, and medical procedures will save a lot of money and save you from financial disaster.
What if you are not in good health and still want to retire early? It is still essential to maintain optimal health for as long as possible, and this requires taking personal responsibility to get well and stay well.
2- No Debt
Be sure to pay off the mortgage, the car, and any other outstanding monthly obligations. Pay off the phone contract. Cancel cable TV. Don’t have big monthly bills: again, prices only increase. Any type of insurance is a monthly bill: If you sell your car and home, you won’t have the regular insurance/tax bills.
3- A Savings Account – with three to six months’ savings
This is something everyone should have. The economy is uncertain, even more than ever. It is quite possible that SSA will stop depositing your social security pension for some arbitrary reason and it may take months to clear up the snafu. Unexpected expenses must be expected, and having a nest egg is essential. But never use it to buy food (that is, unless it’s an emergency).
4- Some form of passive income
Everyone these days wants to buy a property to use for Airbnb rental. This is actually a good idea, but it’s better if you already own the home. If not a homeowner, a pension, 401K or annuity are other examples of passive income. This is the safety net.
5- Simplify to create and maintain an affordable lifestyle
If your house is paid off and you can afford the taxes, you don’t have to move. The idea is to pay very little housing costs. You may have to downsize, but in the long run this is a good idea. Sell the car and other expensive items that cost money to use.
6- Resourcefulness: a growth mindset
You must be willing to adapt to your new circumstances. See the glass as half-full; see your new life as an exciting adventure. Don’t look back and pine for the good old days: realize how lucky you are to be able to retire! If your favorite foods and pastimes are too expensive now, try new things.
7- Social connections
Everyone needs friends. You will need to make new friends who are in similar circumstances and can encourage and support one another. Be a good neighbor, volunteer – social connections keep us healthy and provide free fun. Trading and bartering with neighbors happens organically as we make social connections.
8- Stay Home
Learn how to be content with what you have. Take the time to learn the old arts of gardening and food preservation, fixing things, mending and sewing. Rescue and reuse items instead of tossing and replacing them. Saving money requires more staying at home.
9- Develop an income stream from a hobby or skill
As a result of staying at home and learning new skills, you may find you have something to sell. Put out your shingle if you are a professional; tutoring and consulting can be a part-time income source.
10- Repurpose life goals from making money to living life
Practice gratitude. Redirect your focus away from “how little money I have” to “how much life I am now living.” You have health, friends, an affordable lifestyle – you are in control of your spending – and you have the time and energy to spend on doing what you believe is important.
The Takeaway
The experts tell us that only those with plenty of money can afford to retire. It may even be true that our capitalistic system encourages cruelty and lack of compassion for the poor. What other explanation is there for the trend of delegating the elderly poor to lives of endless toil with no hope of ever retiring?
“If you don’t have enough money to retire, you will have to work for the rest of your life.” What hypocrisy!
There is an alternative. But it is a trade-off: If you want to retire early with not enough money you can retire, but you will have to reduce your expenses and simplify your lifestyle. It’s up to you. Personally, I think it’s worth a try.
