Thinking about retirement?

[Gibsonian]

I have heard your stereotype story about Parisians but I worked and lived in France for 4 years and would happily live there again. The French are IME cultured and well educated.

I have visited the USA many times since my first visit in 1970, for holidays, visiting relatives and as a consultant helping racing teams in indy car and sports car racing.
I have found US people to be generally polite, gracious and generous but generally not that widely educated.

US for sure lacks in education. Don’t think there is a much more gullible group of people on the planet

 

[JeffS7444]

Food costs are a factor if retired on a fixed budget.

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Nevertheless, Honolulu can be a lovely place for someone who likes year 'round warmth and sunshine. But if you own a yard, be prepared to deal with how quickly plants can grow in the tropics! For some people, whacking weeds seems to be their retirement hobby.

 

[Bwmr]

Personally, as a retiree, I think it imprudent to count on spending from one's principal and it is better to delay such a financial strategy as long as possible. This is both from having lived through variations regarding % return on investment and (like everyone) inflation related increases in expenditures. However, I am most reticent regarding a pre-determined draw down from principal since retirees may be confronted with untimely massive expense of age associated decline from medical events that require daily living assistance. That kind of situation to me is the only time when a retiree should dig into their principal for spending (there's an old adage: don't outlive your money. Then there's the aphorism: live long enough to be a burden to your children).

I agree that drawing down on the principle can make me feel insecure.
But drawing only on the interest earned, and keeping the principal for perpetuity does not fit the "harsh reality" that I do not live for ever. What is the probability that I live until 95? Or 100? Quite low, even if I am trying to do the utmost to preserve my health.
But my main concern about not drawing down the principal is time: as a not-yet-retired person, I will need to spend more time at work to try to build a bigger amount. And that time is gone forever, "like tear in rain" (from Blade Runner ).

I have seen many colleagues/friends who worked up to their 60s before they retire, only to catch a terminal illness within a year or two. Retire as soon as we reasonably can: running out of money is a risk, but running out of time (to enjoy retirement) is also a risk.

 

[Timcognito]

 

[PristineSound]

but generally not that widely educated.

There is a reason why the United States of America has the most top ranked universities around the world. Sure sure, you can try to claim many of these college students are foreign students, but foreign students only makes up less than 10%. There is a reason why out of 20 most valuable companies, 18 are US companies and absolutely none of them are European companies. There is a reason why US has the most innovations (by metrics such as high value patents) and leads the world. . .by a far margin.


Of course there are some who are not highly educated, but according to OECD, the US has a higher tertiary education rate than Europeans. So maybe you not knowing these facts, you are no so widely educated?

 

[Soandso]

… you can try to claim many of these college students are foreign students …

On the subject of comparative USA educational status in the context of certain European conceptions there is a tremendous number of immigrants in the USA which skews the education profile. For example in the highly populated state of California in 2023 there is the following data (below from 2023) illustrating that if include foreign born residents to the native born USA population this would significantly affect one large USA state's educational statistic. [Although parts of Europe also have foreign born residents I haven't checked for comparative statistics; while my surmise is that, at least until recently, the % of foreign born residents is greater in USA than in Europe.]

 

[PristineSound]

We just returned from our trip to France yesterday. I could not disagree more vehemently with this post. From Paris to Reims to Chalons-en-Champagne to Lyon to Avignon and then back to CDG for our flight home we were universally met with kindness, politeness, and understanding of our attempts with French. We were in musées, cathedrals, restaurants, Champagne houses, taxis, trains, busses, small shops, you name it. Everyone - and I DO MEAN EVERYONE - could not have been kinder and more pleasant in every way possible. I am tall and use a cane as a third balance point and the considerations of French institutions including all museums, immigration and customs, were fantastic. It was not until we arrived back into IAD that I ran into rudeness and general disdain. One older (and I can say this as I'm 74) woman almost knocked me down pushing past me to get her pack from the security tray behind mine - as she was obviously sooooo important. Glad to be back home to our house, but France was wonderful and we hope to be able to return. To France and the French I have but to say: Merci pour tous!

Every surrounding country in Europe that I've been to, which includes, UK, Spain, Portugal, Germany, Italy including other European countries such as Iceland. There is an universal sentiment on how rude the French are. I usually strike up a conversation with random strangers when I travel, such as cab drivers, tour guides, waiters/waitress, when the topic of the French comes up, each one of them at best roll their eyes when talking about French people.

The concept of a line in Europe is generally fluid, when I was in Portugal I was cut in line 3 times, when I was in Paris, I was cut in line 3 times a day by French speakers who appears to be locals. They would even cut a in the middle of a family to break them up on lone. A French father instructed his son to push my son out of the way, so that they can get a clear view of the city skyline. We were in a bus, my son stood up to stretch in front of his seat, a grown French man try to take his seat. Others may have a better experience with the French people, but I can tell you the French have a universal reputation for being rude. And frankly, it's not a stereotype. Perhaps, just perhaps, French outside of Paris is less rude? Perhaps.

 

[PristineSound]

On the subject of comparative USA educational status in the context of certain European conceptions there is a tremendous number of immigrants in the USA which skews the education profile. For example in the highly populated state of California in 2023 there is the following data (below from 2023) illustrating that if include foreign born residents to the native born USA population this would significantly affect one large USA state's educational statistic. [Although parts of Europe also have foreign born residents I haven't checked for comparative statistics; while my surmise is that, at least until recently, the % of foreign born residents is greater in USA than in Europe.]

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If you are talking about locale specific, of course there are some with more foreign students, but all of the US, is less than 10%, I've actually read 6%.

And even in California, the overwhelming vast majority are still Americans.

So no, this concept of Americans are less educated is fake news. Maybe some parts of America, the locals are less cultured and less traveled.

 

[rcstevensonaz]

Can we move the topic of education levels in USA to elsewhere, and return to retirement?

And back to the topic of food affordability… my experience the past days in Norway is that I also need to include cost of alcohol. That is the nail in the coffin that Norway is not on our list!!!

(And I thought I had it bad in Seattle with #4 cost of food and, by far, the highest cost of alcohol in the USA)

 

[Timcognito]

Come on there are dumb and uneducated people everywhere as well as rude and opinionated (not so much in Japan where that behavior would be an embarrassing). I've been on five continents and most people are kind and polite to foreigners. I realize there has been a trend among some in the US to vilify those outside our borders but that is shameful to most here. Let's move on.

 

[Mart68]

And back to the topic of food affordability… my experience the past days in Norway is that I also need to include cost of alcohol. That is the nail in the coffin that Norway is not on our list!!!

(And I thought I had it bad in Seattle with #4 cost of food and, by far, the highest cost of alcohol in the USA)

You can always brew your own. Not free, but a lot cheaper. Being retired, you'll have the time to do it.

 

[blueone]

Yet another thread descends into nationalism and politics.

 

[Doodski]

Yet another thread descends into nationalism and politics.

I love it when you point out the absurdly obvious with such cutting simplicity. It makes me chuckle everytime.

 

[Bernard23]

What do folk think is a pragmatic amount of savings?
I'm approaching 60 but have 8 years of a mortgage left to pay (remarrying late in life has its downsides) so I'm planning on keeping going to 67 which is the age in the UK where the state pension kicks in. At that point I plan to have paid off the mortgage, get rid of one car and maybe down size, my savings will be around £600k which I'm hoping will be sufficient. The projected income seems quite low, relative to that when you're working.

 

[Ken1951]

Yet another thread descends into nationalism and politics.

And it's likely my fault. I remembered the post in reply to mine about taking French lessons in preparation for our trip to France and wanted to reflect on our very, very favorable experience over 15 days in France in a wide variety of locations. I should have known better .... Désolé ...

 

[Salt]

No. Personal experiences and points of view can be very different, as seen in the discussion in this thread.
Don't see any great faulty behaviour so far, only a wide spread of what people encounter and/or think they would.

 

[Salt]

Btw: Americans are flooding Portugal (use a translator or your choice):
https://www.tagesschau.de/wirtschaft/weltwirtschaft/portugal-wohnungsnot-touristen-100.html

 

[PristineSound]

Can we move the topic of education levels in USA to elsewhere, and return to retirement?

And back to the topic of food affordability… my experience the past days in Norway is that I also need to include cost of alcohol. That is the nail in the coffin that Norway is not on our list!!!

(And I thought I had it bad in Seattle with #4 cost of food and, by far, the highest cost of alcohol in the USA)

The cost of living is important, but consider this, there is a 50% chance for anyone person to get cancer in their lifetime, so access to healthcare is the most important for me.

 

[Soniclife]

What do folk think is a pragmatic amount of savings?
I'm approaching 60 but have 8 years of a mortgage left to pay (remarrying late in life has its downsides) so I'm planning on keeping going to 67 which is the age in the UK where the state pension kicks in. At that point I plan to have paid off the mortgage, get rid of one car and maybe down size, my savings will be around £600k which I'm hoping will be sufficient. The projected income seems quite low, relative to that when you're working.

The key question, which we cannot guess from your post, is what do you consider a sensible amount to live on? This is the critical thing anyone considering retirement should be working out first.

By my very crude calculation, including the state pension, an average of 5% growth on savings, and to have zero capital left in 30 years (from 67), is just under 50k a year, before tax.

Not sure how often this has been said in this thread, but get professional help, almost everyones situation is likely to be complicated, there is a lot to consider.

 

[Bernard23]

The key question, which we cannot guess from your post, is what do you consider a sensible amount to live on? This is the critical thing anyone considering retirement should be working out first.

By my very crude calculation, including the state pension, an average of 5% growth on savings, and to have zero capital left in 30 years (from 67), is just under 50k a year, before tax.

Not sure how often this has been said in this thread, but get professional help, almost everyones situation is likely to be complicated, there is a lot to consider.

Oh I have, but a, financial adviser can't tell you what sort of lifestyle you can lead, only how much cash you will have and the best way to draw on it. Otherwise yes, I set a target of £45k - £50k till age 75, dropping to 35k to age 80 and then living like my parents who rarely go anywhere or purchase big items because, at that age you can't.
The best advice is from folk who have done it / doing it.