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Retirement Coming? Be Sure You’re Ready

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retirement-savings-1For many workers, retirement seems an ethereal, distant eventuality that doesn’t require much thought. Don’t you believe it. It comes and it comes sooner than most Americans are ready for it.

According to a USA Today article, about a third of Americans have less than $1,000 in savings and investments to fund their retirement, aside from a home and defined benefit plans such as pensions. Fifty-seven percent say they have less then $25,000 set aside for retirement, a survey taken by the Employee Benefit Research Institute and Greenwald and Associations noted. Their research results match those generated by other researchers.

Many pin their hopes for a financially secure retirement on working beyond the usual retirement age. But, again, the research shows that isn’t realistic. Some 50 percent of workers leave the workplace before retirement age, 60 percent of that number because of health problems and 27 percent because the nature of their work conditions has changed. Their company has downsized or closed entirely in many instances. Only 23 percent of retirees actually report having continued to work for pay.

Things don’t always work out. It’s better to save now than to rely on nebulous chances to work longer later, the experts advise. How many years you are eligible for a retirement plan through your work is one of the best indictors of how well you will fare financially after retirement.

In the EBRI survey, only 14 percent of those questioned said they felt secure about retirement. They had retirement plans. Conversely, 44 percent who had no retirement plans were concerned about the ability to adequately prepare for retirement.

Many workers simply fail to think about retirement at all. Fewer than half of those surveyed said they and/or their spouses had tried to calculate how much money they would have at retirement. The greatest excuses for failing to save is the cost of living and day-to-day expenses. Debt also is a factor, with 51 percent indicating they had a problem with the level of debt they had incurred. Almost 70 percent of those surveyed said they thought they could save an additional $25 per week more than they currently are doing, but they would have to sacrifice something, such as meals out, to do it. They were advised that the additional savings would amount to some $1,300 a year. But you can’t wait until retirement is imminent to do it.

Bottom line, the experts advise, is living within your means and starting to save early. Ignoring the potential problems until it’s too late serves no purpose. Many financial institutions offer help in calculating what your saving should be to assure a comfortable retirement. The alternative is to plan on spending much less than you earned on the job, live largely on Social Security and seeing savings dwindle quickly after you retire.

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    Education: It Really Does Pay

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    Graduation from college doesn't guarantee a life free from worry, but it does help.
    Graduation from college doesn’t guarantee a life free from worry, but it does help.
    Thinking about getting a college degree? Check the figures. They have long shown that the way to job security and higher pay is to have more education added. Predictably, the more education, the more pay. The data clearly indicate that post-high school training is a predictor of a healthier financial status.

    Those who leave high school without a diploma earn, on average, about $10.70 per hour. A certificate of high school completion kicks up the average to $13.40 per hour.

    College education, even if it stops short of a full bachelor’s degree – say an associate degree or technical training – raises the average to $15.30 per hour, almost two dollars more. Get the bachelor’s degree and the average jumps to $21.50.

    Graduate and professional degrees lead to average earnings of $29.70 per hour.

    Not only does the amount of earnings rise significantly as the amount of education increases, but the chances of being without work clearly go down for the educated.

    The unemployment rate consistently goes up as the level of education goes down.

    In one state study, those with a bachelor’s degree or higher had only a 2.6 percent unemployment rate, while those who had left high school prematurely had a rate of 6.4 percent.

    The obvious lesson is that if you want a job that offers financial security and some of life’s amenities, you begin planning early to finish high school and then get some additional training in a chosen field.

    And there is nothing that says you have to stop your educational efforts if you are already working. If you are determined to better your financial status, there are opportunities to get additional training. Check the resources in your own area and chances are you’ll find what you need to help you advance. Most institutions of higher education offer counseling services that could be helpful. U.S. Department of Labor and state employment agencies also have helpful resources. Employers often encourage additional training and can steer a worker into educational opportunities.

    Career changes are not uncommon in today’s job market and that most often means a new learning challenge. Being open to learning opportunities is the starting point. You’ll find the reward is more than worth the effort.

    Career Changes Are Standard Today

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    changing-jobsIf you begin a career, stay with the career and retire from the career, you’re an exception in today’s job market. Second or even third job shifts are common now. Some people change not only companies, but actually take on entirely new careers during their working years.

    The rapid advancement of technology has dictated changes in many professions, with some jobs disappearing and others requiring new training and expertise. Young people entering the field today are more aware of the realities and may not have trouble making the changes. But facing the need to change when you came up through the old reality is something else.

    Those over 50 who are facing an altered career have things to consider, such as finances and futures that now have new parameters. They may not be prepared yet for retirement, but are wary of facing drastic new work realities. There are ways to prepare for change when it comes. Consider these tips:

    Consider what you want. If you are hoping for more family time or leisure, look for a second career that is less demanding. You might want to think about starting your own business, putting your years of experience to good use. Initially, that could put more demands on your time, but you’d have the best boss ever. Look at the potential from all angles.

    Look realistically at your skills. In some instances, those skills are not in demand any longer. The thought of retraining may be daunting, but it may be the key to staying on the job for another decade or so. Look for counseling at your local government agencies and institutions of higher education. If your skills are still marketable, look for work in areas where your experience will be valued.

    Try on a new job before making it permanent. Some businesses will let you volunteer for a period of time so you can judge how the new job will fit your desires and the skills you have to offer. A trial run can either convince you that you still have something to give that will give you satisfaction in return. Or it could send you looking for something else. Either way, it will be valuable in making a decision for your remaining work years.

    Make use of your network, enlisting family, friends, former co-workers or current colleagues, in the search for work that will be satisfying. Ask for advice. If you are considering a particular field of work, find contacts who can give you a realistic view of what that work entails.

    Maybe you’ll be one of those who enjoy a lifetime career with one company. Don’t count on it. If you have to make a career switch, make it a happy one.

    Pity Party Fails

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    pity-party-garfieldHave you ever been drawn to pity parties to make yourself feel better or to get attention? Disappointments in life can get you there in a heartbeat. No one gets through life without some adversity and negative thoughts that throws you for a loop. But wallowing in self-pity beyond the immediate disappointment is not likely to help.

    To begin with, it won’t change the reality. If you lost a business opportunity, didn’t close the major deal you’d been working on, or missed a deadline that proved fatal to success, feeling sorry for yourself won’t change the facts. Mourn a little and move on.

    People who have nurtured mental strength are able to look at a negative situation realistically and then put it aside and prepare for a new challenge. They don’t allow themselves to become mired in the aftermath of a failure. They don’t allow the perception that life is against them mature into a debilitating focus on the failure.

    Focusing on the negative makes it grow out of all proportion. And the negative thoughts may blossom into negative actions. Or you may become so buried in negativity that you fail to act at all. Mentally strong people recognize the potential for becoming caught in the downward spiral and take steps to change their perspective.

    Emotional states dictate how one perceives reality. It seems that there is no good at all in your life. Making a true assessment, you are likely to admit that your life isn’t all bad. Bad luck isn’t the only kind you experience. Your life isn’t really ruined unless you allow it to be. To change the reality, you have to change your all-negative perception.

    Being mentally strong means you don’t allow negative thinking to become a self-fulfilling prophecy. Monitor your thinking and when you find you are putting yourself down, opt for a positive thought. Every minute that you spend in negative thinking is one that you didn’t spend working on a solution to the present challenge.

    Gratitude and self-pity can’t co-exist. Seeing the cup as at least half full will help you avoid the determination that life is rotten. Think of what you have, right down to the air you breathe and the abundance that you enjoy in hundreds of little ways and be grateful.

    Helping others is a fool-proof way to climb out of the self-pity rut. There are many around you whose needs are greater. Even in America, there are homeless people who go to bed (if they can find one) hungry and afraid. Being mentally strong includes looking outside yourself and helping to make life better for someone else. There are community resources for finding out how you can best help. Use them.

    Complaining to others about how pitifully unfair life is to you can only reinforce the false perception that is crippling you. Mentally strong individuals don’t depend on pity from others to make their lives work. They either act to change the negatives in their lives or they accept what can’t be changed and go in a new direction.

    Retain an optimistic outlook. Life happens. There are natural and personal disasters that can’t be avoided, but they are only part of life. Tell yourself that you can handle whatever life throws your way. You’ll be surprised to find that you really can.

    You build mental strength just like you build physical strength. You develop good habits by exercising, eating well and getting rid of bad habits. To build strong mental health, exercise positive thinking and treat yourself to a good helping of realistic self-imaging. Get rid of harmful mental habits, including self-pity.

    If you feel you can’t do it on your own, find professional help or look in the stores or online for books, magazines and articles that can guide you toward the mental strength you desire. It’s worth the effort.

    Home Cleaning Services Booming

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    Startup Helpling offers a wide range of home cleaning services.
    Startup Helpling offers a wide range of home cleaning services.
    Online services that match people who want their homes cleaned and those who clean homes are beginning to bloom internationally.

    In just four months, Helpling, an on-demand home cleaning service headquartered in Berlin, Germany, has significantly increased its investment. After raising $17 million initially, the company has closed a $45 million Series B round to support its rapid expansion, primarily in Germany and other European countries. To date, the service is available in Germany, Austria, France, Sweden, the Netherlands and Canada.

    Helpling is speedily moving into new markets. The company offers some services in Canada, but not yet in the United States. A dearth of such services has helped the company make quick inroads. In Europe, 200 companies now exist despite little more than a year’s experience. Even so, although Helpling eclipses competitors such as American start-ups HomeJoy, Handy and Hassle, the number of Helpling customers average only 250 in the cities in which it is available.

    Co-founder Benedikt Franke explains some of the figures. They are based on relatively short experience and on the level of investment the company has decided to make in its various sites, he said.

    The service steers people who want their homes cleaned to professionals who do such cleaning. Carefully vetting professional cleaners is an important part of the service. Helpling has tested two approaches: A personal interview and a test clean or an online questionnaire and telephone interview. A review of past cleaning experience and background/reference checks are included. Based on results, the company has settled on the latter process. Company officials are well aware that one bad experience could have a negative impact.

    The customer’s rating of their service is an important element. And the workers who receive the highest ratings are rewarded.

    Franke feels confident that Helpling is just a bellwether concept in what will be an expanding market, both in Europe and in the United States as people increasingly turn to online sources to procure services.