50 min
Shameless Retirement Leaning Toward Wisdom
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- Personal Journals
Shameless
An adjective meaning insensible to disgrace
Retirement
A noun meaning a withdrawal from one's position or occupation or from active working life or the age at which one normally retires
The United States adopted an initial retirement age of 65 with the Social Security Act of 1935. By the mid-20th century, almost all countries had adopted a retirement age of between 60-65. About 40% of Americans receive Social Security retirement benefits as their exclusive income. The average benefit is just over $1700 monthly.
Financial advice is varied, but advisors widely suggest no more than 70% of your retirement income should come from Social Security. If you were to collect the average amount - $1700 - then you'd have a monthly income of about $2400 if that math worked in your life. That's $28,800 a year, hardly a comfortable living for most people.
However, as of this year (2023), the average check to 65-year-olds is about $2500 a month. Apply that 70% suggestion, then your total monthly income could rise to $3600, or $43,200 a year. That's $14,400 more than $28,800.
Lots of people are doing the math urging folks to collect Social Security as soon as possible - age 62. For some, that may make sense. For others, it may not. I'm not an accountant or financial advisor. I'm just a guy sitting inside The Yellow Studio making observations about all this now that I'm 66-1/2, full retirement age.
Full Retirement Age
Full retirement age (FRA) is the age you must reach to receive full retirement benefits from Social Security. Your FRA varies depending on the year you were born. The FRA in the United States is 66 years and two months for those born in 1955, increasing gradually to 67 for those born in 1960 or later. Since my wife and I were born in 1957, 66-1/2 is our FRA. I achieved that in November and Rhonda hit it here in December.
Life is more than numbers, but the numbers matter. What about things other than numbers?
Routine and habits tend to overpower older lives. Neuroscience informs us that we're all subject to habituation.
Habituation
Habituation is a decrease in response to a stimulus after repeated presentations. The American Psychological Association says it involves "growing accustomed to a situation or stimulus," thereby diminishing its effectiveness.
We commonly call it being stuck. Getting in a rut.
What produces satisfaction or happiness?
Meaning is number one. Control is number two.
We need meaning in our lives. Some way where we measure our worth or value in the world.
We also need a degree of control over our own lives. Freedom is choice - the ability to make a choice is largely how we execute control.
As we grow older both of these can be challenges. No surprise because both are challenges no matter our age.
We've all experienced moments where we hit a high in meaning and control. Like that first big raise we got, it didn't seem to last. Things seem to settle into some sort of a norm sooner than later.
The hedonic treadmill is the idea that an individual's level of happiness, after rising or falling in response to positive or negative life events, ultimately tends to move back toward where it was prior to these experiences. It's like that proverbial set point for our weight. Changing that thermostat is hard. Doable, but hard.
This is where habituation is a double-edged sword. It helps us progress and move forward even though it may rob us of some joy. And without habituation, we're incapable of moving. Imagine having to make every little decision afresh every day. How exhausting would that be? So we need habits to a point.
Shameless
An adjective meaning insensible to disgrace
Retirement
A noun meaning a withdrawal from one's position or occupation or from active working life or the age at which one normally retires
The United States adopted an initial retirement age of 65 with the Social Security Act of 1935. By the mid-20th century, almost all countries had adopted a retirement age of between 60-65. About 40% of Americans receive Social Security retirement benefits as their exclusive income. The average benefit is just over $1700 monthly.
Financial advice is varied, but advisors widely suggest no more than 70% of your retirement income should come from Social Security. If you were to collect the average amount - $1700 - then you'd have a monthly income of about $2400 if that math worked in your life. That's $28,800 a year, hardly a comfortable living for most people.
However, as of this year (2023), the average check to 65-year-olds is about $2500 a month. Apply that 70% suggestion, then your total monthly income could rise to $3600, or $43,200 a year. That's $14,400 more than $28,800.
Lots of people are doing the math urging folks to collect Social Security as soon as possible - age 62. For some, that may make sense. For others, it may not. I'm not an accountant or financial advisor. I'm just a guy sitting inside The Yellow Studio making observations about all this now that I'm 66-1/2, full retirement age.
Full Retirement Age
Full retirement age (FRA) is the age you must reach to receive full retirement benefits from Social Security. Your FRA varies depending on the year you were born. The FRA in the United States is 66 years and two months for those born in 1955, increasing gradually to 67 for those born in 1960 or later. Since my wife and I were born in 1957, 66-1/2 is our FRA. I achieved that in November and Rhonda hit it here in December.
Life is more than numbers, but the numbers matter. What about things other than numbers?
Routine and habits tend to overpower older lives. Neuroscience informs us that we're all subject to habituation.
Habituation
Habituation is a decrease in response to a stimulus after repeated presentations. The American Psychological Association says it involves "growing accustomed to a situation or stimulus," thereby diminishing its effectiveness.
We commonly call it being stuck. Getting in a rut.
What produces satisfaction or happiness?
Meaning is number one. Control is number two.
We need meaning in our lives. Some way where we measure our worth or value in the world.
We also need a degree of control over our own lives. Freedom is choice - the ability to make a choice is largely how we execute control.
As we grow older both of these can be challenges. No surprise because both are challenges no matter our age.
We've all experienced moments where we hit a high in meaning and control. Like that first big raise we got, it didn't seem to last. Things seem to settle into some sort of a norm sooner than later.
The hedonic treadmill is the idea that an individual's level of happiness, after rising or falling in response to positive or negative life events, ultimately tends to move back toward where it was prior to these experiences. It's like that proverbial set point for our weight. Changing that thermostat is hard. Doable, but hard.
This is where habituation is a double-edged sword. It helps us progress and move forward even though it may rob us of some joy. And without habituation, we're incapable of moving. Imagine having to make every little decision afresh every day. How exhausting would that be? So we need habits to a point.
50 min