Transition Questions

Transition year. Some of the leading boomers—born 1946 and not yet officially at retirement age—are transitioning to retirement by choice or lay-off. The old prediction was that when the leading boomers retired in 2011, the economy would slow and all of the U.S. would begin to feel the effects of this life stage of the big cohort. But instead of causing a change in the economy, boomers are responding to one. With the Great Recession, net worths dropped, careers ended before anticipated, and (for some) bankruptcy loomed due to mortgage foreclosure.

So, 2010 is a different transition than we imagined. The standard questions were supposed to be:
(a) What date should we set for the last day at work?
(b) How should we re-balance the 401K?
(c) When should we move to the perfect climate?

For Tom and me, those questions are replaced with:
(a) How will we bridge health insurance from now to Medicare?
(b) Does our house value allow us to make a move?
(c) Is a retirement location's cost-of-living more important than climate, now?

So? COBRA ends soon and we'll move on to private insurance or high risk pool. We don't know how house values have held up in our neighborhood but we'll talk to realtors soon. And cost-of-living must be balanced with climate... but climate remains important.

© 2010 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (http://www.marybold.com/, http://www.boldproductions.com/, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.