Tag Archives: retirement

Escape the McMansion invasion in New Jersey by moving to Bloomington, Indiana

Posted on by

This is a story you likely don’t hear everyday: in order to escape the sprawl and McMansions of New Jersey, one couple decided to leave their weekend home at the Jersey shore and buy a second house in Bloomington, Indiana.

But that was before McMansions began rising from the sand, and growing numbers of visitors descended as the narrow Atlantic spit solidified its reputation as a destination for families. The Kiefers found their neighborhood inundated by tourists, their property encroached upon by development, and their easy weekend commute become a traffic-snarled crawl.

So after a number of years of coping with sharp change, the Kiefers decided to search for a less suffocating second-home spot.

The hunt led them to Bloomington, a lively college town tucked in the rolling, forested hills of south-central Indiana. Taking full advantage of the huge run-up in property values on the Jersey Shore, they sold their beach house for “a nice profit” and bought a six-bedroom, 3,500-square-foot early-20th-century charmer in Bloomington’s historic Elm Heights neighborhood in 2010 for $321,000. “It feels like a real old-time community instead of a tourist town,” said Fred Kiefer.

Bloomington may not be touristy, but it is very much a destination. Indiana University draws intellectuals from around the country and abroad (mostly China, India and Saudi Arabia), giving the city of 74,000 healthy doses of youthful and international energy. And as a well-run city that consistently makes the lists of America’s best places to live, its status as a quality-of-life capital has lured retirees in growing numbers.

Some interesting points about this story:

1. The “McMansion invasion” theme comes up a lot in the Northeast, particularly in coastal towns. Are there also McMansions in Bloomington (I assume there are)?

2. This couple does have family in Louisville and Cincinnati so they didn’t exactly pick Bloomington out of the blue.

3. The biggest swipe at the area or Indiana comes in this benign phrase: “Drawbacks – Bloomington may not have enough urbane distractions for some.” This could be quite a change from New Jersey and either the New York City or Philadelphia areas.

4. Bloomington is a “creative class” city anchored by Indiana University.This would be appealing to a lot of people.

5. One of the bonuses of this move is the cheaper cost of living in Indiana. Does this outweigh the lack of “urbane distinctions”?

6. This makes me wonder how many people from either the East or West Coasts retire to the Midwest or purchase second homes there.

7. I’m tempted to ask: what happens when this couple wanders outside the relatively cosmopolitan Bloomington into non-creative class Indiana?

How women are “taking the lead” in retirement decisions

Posted on by

Within a story about the large number of people who wish to move when they retire, a sociologist suggests that a shift in retirement has taken place: while men have often decided where a couple might go, women are now playing a more active role in deciding where couples should go:

“Retirement used to be a male transition that wives really just accommodated,” says Phyllis Moen, a professor of sociology at the University of Minnesota. “Now women are taking the lead and planning what is going to come next. There’s a ‘his’ and a ‘her’ view of things.”

The “her” view catches many men by surprise. Cheryl Rampage, a clinical psychologist at the Family Institute at Northwestern University, recalls a man who wanted to retire to Palm Springs, Calif., and play golf. The wife wanted to stay in Chicago. “He took it as a huge slap in the face,” Ms. Rampage recalls. “He had developed this dream in his head without being in a conversation.” After some therapy, the couple agreed to move to a city they both liked.

I would be interested to hear a longer explanation about why this shift has taken place: feminism? More participation of women in the labor force? Changes in what retired people or people near retirement expect to experience in retirement?

A growing number of “encore careers”

Posted on by

Retirement is an interesting topic these days in the United States: can people retire after the losses in the recent economic crisis? How will society pay for Social Security and medical benefits when all those Baby Boomers retire? How will states (and other organizations) pay for pensions that have been underfunded?

One answer: have those who have retired enter an “encore career.”

Daly is part of the growing “encore careers” movement — an effort to match older workers who can’t or don’t want to retire with public service jobs that benefit society. The movement, begun in the late 1990s, has spawned non-profit groups and programs from Boston to Portland, Ore., aimed at helping older workers find new work. Many of the programs are run by people who have made the transition.

At a time when 77 million Baby Boomers ages 46-65 are moving toward traditional retirement age, analysts say the movement could grow exponentially in the coming decades. A 2008 survey by MetLife Foundation and Civic Ventures, a national think tank on boomers and work, found more than 5 million Americans in encore careers. Half of those ages 44-70 expressed interest in them.

Moving from one career to a more altruistic job late in life isn’t easy, however. Analysts say there aren’t enough of those jobs yet, the pay is usually low and employers often favor younger applicants.

It seems to me that there is a larger issue underlying these practical obstacles: as a society, do we value the kinds of contributions older citizens can make? Those who have retired or are nearing retirement have a wealth of experience, related to jobs and working but also a variety of important life lessons and skills,  that the rest of society could benefit from. But if we are a society that tends to value youth and novelty, then these encore careers might not be something we encourage.

Ultimately, a movement like this could end up being a nice solution to some of the demographic and financial issues that face the country in the next few decades. If the number of these jobs could grow, those who have retired can share their experiences and wisdom while also earning some money in order to ease the financial burden on broader society.

What to do with those extra years of life

Posted on by

Virginia Postrel addresses how American society can move beyond seeing age 65 or retirement as the end of a career or life (“Floridization”):

It’s to change the pictures in our heads, to give up the images that “Floridization” evokes, as either a warning or an implicit ideal. People do not automatically become crotchety, backward-looking, and idle when they reach their 60s.

But changing that picture means exchanging today’s architectural metaphor, “building a career,” for another one: adaptive reuse. This is the human-capital equivalent of turning industrial lofts into apartments, factories into medical schools, power plants into art museums, or saw mills into shopping centers. Your original career may be economically obsolete, or you may just want a change, but your knowledge and experience still have their charms. Instead of equating success with a steady progression of better-paying jobs, each related to the previous one, this model emphasizes taking on new challenges and making new contributions, even if that means going back to school, taking a pay cut, or starting as a trainee when you’re middle-aged.

One version of this idea is the “encore career” advocated by Marc Freedman, who has made one of the most prominent attempts to think what how longer, healthier lives should mean for Americans’ careers.

This is an important topic to be discussing with longer life spans, limited funds for government retirement programs, and economic times that may require citizens to work to an older age. Those with more years have plenty to contribute to society and to simply write them off as past their time is foolish: it is not good for these individuals, their families and communities, and society.

Implicit in this discussion is an American emphasis on youth. Postrel cites one journalist who seems to suggest that youth equals progress and that being older automatically leads to loneliness. This may only appear to be the case because our society doesn’t leave much productive space for those who have retired. As I recently discussed, being older can lead to increased happiness and wisdom, two traits out society could use.

h/t Instapundit

Defining the middle class

Posted on by

A Yahoo! article lays out six markers of being middle class, according to an unnamed government task force. As the article suggests, middle class is a nebulous term in America:

People earning 20% of the average income and people earning 80% all claim to be part of the middle class. More than a few millionaires make the claim too.

Here are the six markers according to the task force: home ownership, automobile ownership, providing a college education for children, having retirement security, having health care coverage, and being able to take family vacations.

Looking at this list, I’m struck by three thoughts:

1. It seems quite American with its emphasis on owning a home, owning a car, and being able to take vacations.

2. This sounds like a life that has to be, or at least typically is, lived in the suburbs.

3. This would take quite a bit of money. Particularly with the point on providing for college, the middle class lifestyle is going to take a decent amount of income. Would the US median household income of $52,029 (2008 estimates from the American Community Survey) cover this? I’m guessing it would be difficult and it means most families would have to have two good incomes. Critical to all of this (and it was not mentioned) is to have a fairly high-paying career.

Generation Y not saving for retirement

Posted on by

Businessweek writes about efforts to get employees of Generation Y to contribute to 401(k) and other retirement programs. Apparently, this is difficult as student loans average around $20,000 and average salaries for this age group have dropped 19 percent over the last three decades after adjusting for inflation.

If you are in Generation Y, be prepared to see more efforts (through social media, for example) to get you to contribute to retirement savings.

h/t Instapundit