So I just figured out how much more money I would likely have by the time I retire if I had graduated in 4 years instead of what’s looking like 6 considering a somewhat decent starting salary and decent return on investment. I’m not much of a material person, but damn I need a drink.
Think of it this way – when you have your mid-life crisis in your 40’s and ruin your life chasing after some bimbo half your age, that will be that much less you’ll have to give up in your divorce settlement.
Did that help any?
NB: If an extra year or two of undergraduate does this to you, definitely don’t consider grad school. You don’t want to know what that does to your retirement situation.
I know, I’ll just not have kids, yeah that’s it. Unappreciative little bastards anyway!
Well, I’m not too worried about my financial situation. I think it’s more putting a number to how much I’ve been a slacker that bothers me rather than the money.
If you’re driven nearly to drink by the prospect of what two years’ loss of income will do, god help you if you ever get laid off.
At least you noticed it now while you still have time to work on it.
Last year, a co-worker of my Hubby came into his office looking positively ill. He had just attended a meeting for those who were going to retire within the next five years. Wherein he discovered that he was fucked.
Absolutely fucked. He had no savings, and he said his bills were too high to survive on 70% of his salary. Mind you, he has no kids, no major medical issues, and he has lived in a workplace-provided house for the last 15 years. He had just discovered to his horror that he had to move from the workplace-provided house when he retired (wow-- who would have expected* that*?) and he said he couldn’t even afford an apartment. He and his wife had spent every cent of his salary and they didn’t even have anything to show for it.
Hubby listened with apparent sympathy but finally had to ask, “Is this really the first time you thought about this?” Yep-- it was. Less than five years from the date he was supposed to retire, he finally paid attention to what the employer had been telling him for years about his benefits.
He’s not the only person I know who seems to operate on the assumption that somehow everything will just work itself out when it comes time for them to retire. Hubby and I are friends with a couple who are in their late thirties. Neither of their jobs have retirement benefits. They don’t save a dime, and every time they get a bit of equity in their home, they refinance to use it to pay off bills. We’ve gently asked them a couple of times what they intend to do, but their answers are always very vague and dismissive. They don’t know, but they’re not going to worry about it.
I once read an article that said when my generation retires, we’re going to see the world’s largest yardsale as people desperately try to sell off their big-ticket items that they can no longer afford.
Now imagine what it’s like to not give one iota of thought towards retirement planning until you’re in your early 30’s. There’s a wake-up call.
Something I said leads you to believe that I’m freaking out over this? I’m not in case you’re worried.
I admit I’m naive in the area, but how would getting laid off be worse for me than not working for 2 years straight?
Mind if I ask how old you are? I mean, if you are in your late 20’s, early 30’s, just assume you will likely be healthy enough to work until you are in your mid 70’s. That is 40 years or more. Which is about what you would have if you started when you were 20 and retired when you were 60.
I have no basis for this, other than a growing trend of people working later in life, extended life expectency, and the trend of older people being more healthy and able to work. Some, like myself, never really plan on retiring- or at least not fully.
I think you will be surprised at how much longer people will be working in another 40 years. If you are older now, however, it is likely that time isn’t as much on your side for this reasoning, but you never know. Start taking care of yourself (not saying you don’t, just making general statements), eat healthy, sleep enough, and keep mentally and physically active and you can extend your working years further.
Retirement isn’t always something set in stone.
That’d be the line.
The point being that you are currently choosing to take these two years off, but some time down the road, you may be out of work with not much to say in the matter: if people won’t hire you, you don’t work.
Take my wife. Please. She got laid off four years ago and hasn’t worked a day since. I keep mentioning to her that I’d kind of like to consider retiring sometime before I die, but she’s not hearing it.