I am probably not alone here in the fact that travelling for me has become an addiction. And like any other addiction I have a tendency to blow my money on it. I have one of those jobs where I can work as little or as much as I want (I guess everyone could actually), but I could still live very comfortably working 8 months a year and travelling four. The only thing is I would have very little in savings by the end of the year. But then again, that's not such a bad way to live. So I'm wondering if I really need to save for retirement. My boss is 81. He retired rich in the 70's but got bored and started working again. I would love to be able to work and travel 'til I die. I guess I don't understand the point of retiring or saving for retirement. Do you?

I'm in two minds about this.
On one hand, you can't guarantee that you're going to be healthy enough to work until you die (so to speak). So in that instance, you need retirement money saved to pay for medical treatment and possibily a nursing home or hostel.

Then again, you might be perfectly healthy up until the day you die, and you can't take your money to the grave with you. In that instance, you may have all this money sitting in a 'retirement' fund that you could have used when you were younger to do all the things you wanted to do, but thought that instead you should save for your future.

I guess it all depends on each individual's perspective. I think I sit somewhere in the middle. I'm not desperately saving money for retirement, and am leaving home indefinitely next month, but previously did save enough to get a house (still partly mortgaged), so that I can draw an income from having renters in sometime down the track.

I don't think there's a right answer to this, it just depends on what each person feels comfortable with.

Uhh yeah, I don't want to be working when I am 80 years old. If you can survive on 8 months of working every year and traveling 4, why dont you just work 9 months and travel 3? Or do that every other year? It takes less than you would think to save up enough to retire as long as you put away money consistantly. Even if you cannot retire until you are 75, you will be happy to travel year-round then.

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Originally posted by Young Wanderer:
Even if you cannot retire until you are 75, you will be happy to travel year-round then.

Uhh yeah, but you will be SEVENTY-FIVE! Traveling is certainly not as easy when you're that old. It's much more pricey in terms of insurance, and accommodations (a 75 year old staying in a hostel?) Some stuff is just better experienced when you're young.

I'd rather retire later if need be. If you're doing something you enjoy, working until your old age is no big deal. I think so many Westerners are intent on retiring early because they hate their jobs.

I completely understand what you mean ChristineHind, but I would rather have the safety net if something happened to me and I was unable to work any longer. Besides, its not like I'm suggesting that you don't travel at all, 3 1/2 months out of the year isn't too bad

Well I am very good about taking care of my health, eating right, exercise, etc. as is my 81 year old boss. I also know that people that live the longest tend to work and keep themselves busy til they die. Work for me is enjoyable and I like to keep my mind busy so retirement doesn't seem to interesting. Who knows what the economic and social impact of global warming will bring by the time I can retire? Travel may be astronomically expensive in the future if new energy sources and technologies are not discovered. I seriously doubt the lifestyles (as westerners) we live today will be the same in 50 years. I wonder if mutual funds, 401k's, and savings plans will even be relevant. Well I think I just talked myself out of saving for retirement. Thanks for the replies

True, 3.5 months out of the year is awesome. I just don't know many people with that kind of job flexibility.

I'm all for the safety net too, I just think there are too many people out there who work like dogs for so long only to find they are worn out by the time they reach retirement -- whatever age they might be.

I look at my dad, who will likely retire about 10-15 years earlier than most, with a good nest egg and I think all he'll want to do is lay on a beach. His stress level and lifestyle over his working years has taken a toll on his attitude and health to the point where I don't think he would really get the most out of traveling after retirement, so I definitely want to avoid that if I can.

Looks like this subject may be nearing its end, but I just have to jump in here. I'm funding my entire RTW trip off a retirement account I've been building at my current job for about 6 years. I'm pulling out a little over half what's in there, paying the 10% penalty and taxes, and not looking back. I'm 32, and when I can back, regardless of when I retire, I'll have still years to work to save for retirement or not. I don't know. I do know right now I'm physically able to climb Mt. K. and travel through India and other parts of the world that I surely won't visit when I'm retirement age!

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Well I am very good about taking care of my health, eating right, exercise, etc. as is my 81 year old boss. I also know that people that live the longest tend to work and keep themselves busy til they die.

It looks like you had made up your mind before you even started this thread, but I'll give my 2cents anyway.

A little story...my grandfather, good health, suddenly had a stroke. He had "kept himself busy" until said stroke (I guess he was about 68 when he had it, so not very old). Luckily, he had saved for retirement and could pay for the unexpected expenses that something like that could bring.

You could be in an accident, you could have a aneurysm, etc. And with no savings, you're screwed, as are your loved ones who will need to take care of you. In addition, death is expensive. It costs to have you buried/creamated/etc. With no savings, you are leaving that to others to take care of, which, to me, is selfish. And that could all happen sooner rather than later. Not to be morbid, but those are the facts.

Yes, the way westerners live will be different in 50 years. How? It'll be more expensive, we won't be able to count on Medicare & Social Security the way we can now.

I am in no way trying to discourage you from traveling...I just think when we are younger, we have a sense of immortality or a way of putting things off. If you have the opportunity to think of the bigger picture, it is important to do so.

It isn't hard to save money. Put a little aside each month in a high interest account and you would be surprised how that adds up. Even tax-deferred plans, like IRAs & 401Ks can end up netting quite a lot.

As for your boss...it is nice his going back to work was an option, not a necessity.

I worked for many years administering retirement plans. I totally agree with Annie. It will be great if plan A works out but if you have a little set aside it is much easier to move to plan B if you need to.

It is all about balance to me. I have seen both extremes....people saving endlessly and not living to enjoy the "golden years" and people who suddenly can't work but have no savings. No one knows what the future brings. My solution is the middle way. Save some for the future while enjoying today as well. That to me is the key.

IMHO.

I have a retirement account of which I put the same amount that I put into my travel account.

But I do say this I have known more than one person that saved everything they could to use in their retirement and died young or youngish and never had a chance to enjoy it.

Save some but live for today. If the choice comes down to a maybe tomorrow or a definite today. I chose today.

This isn't some wild rhetoric I am spewing but a definite choice of lifestyles. I am no spring chicken but I am not old. Only 18 mos. from senior discounts on some airfares.

I have dared to live my dreams and have no regrets on that matter. My home is my pack. I take jobs as I go. And travel at will.

So if you have the choice and most people do save some and use the rest for travel.

Sorry to go on but this is a hot button topic for me. I've seen too many lives wasted because people refused to believe the dream.

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Originally posted by poochythedog:
I guess I don't understand the point of retiring or saving for retirement. Do you?

Look, the majority of people out there seem to think it's either work/kids/etc, OR fun/travel. So, to them, there is a huge point in retirement, and saving for retirement. Retirement is their vision and goal. I attribute it to their personality. A friend from college who I'm diverging drastically from is following more of this timeline...yes, it saddens me that she's just doing your typical thing and has already convinced herself that she'll never make it out of the country til she and her husband reach retirement. But that's who she is, and that's what she believes. And actually I kinda think she doesn't really give a rats ass about seeing the world; so I'd guess being a traveling vagabond would be her anti-dream. :-) So there's that too. What can you do. So I think it's important to remember that many people don't really value travel the way we do, and also...travel is a HUGE luxury.

But anyway - the belief that you can't work, save for future needs (i.e. retirement), AND have fun -- that you have to sacrifice one or the other -- is so stupid. I work, save quite a lot, AND feel I travel quite a lot these days. All on less than what some of my friends make, who say they can't afford stuff. I love how I've gotten it all to balance out, and I feel like I'm 'living the dream' right now...at least the dream that makes ME most happy. :-) So it's possible to live now while also saving for the future.

Depending on where our country and the world is in 50 years (as well as whether I'm alive ;-), will determine how my 'retirement' plays out. But I'd be willing to place bets that I'll be doing the majority of my traveling right now, and in the next 10-15 years, and if I were to reach retirement age, by that point, I'll be content with the little things in life, and will be happier to stay put. But that's just a guess.

When I save for 'retirement', I'm saving for future needs and emergencies, and the fact that at some point, I know I physically &/or mentally will not be able to work at all (who knows what age that will be? It could be any age.)...I think it's irresponsible not to do so. Sorry, but that's what I think. I would feel 100% selfish if I didn't do so, then suddenly got sick and someone elses' insurance had to pay for my stuff, or the cost fell on my family. I think we have an obligation to take care of ourselves..present and future selves.

Edit:I'm not saying what I manage to save will actually cut it if something should happen (given rising costs, etc)...and it's possible I'll never get a chance to use it...but I still wouldn't regret that I set it aside, as I'm still living how I want in the present, and don't really need anything else.

quote:

But I'd be willing to place bets that I'll be doing the majority of my traveling right now, and in the next 10-15 years, and if I were to reach retirement age, by that point, I'll be content with the little things in life, and will be happier to stay put. But that's just a guess.

Hmm...that's probably a pretty good guess. I've never thought of it quite that way.

You always hear to save money so you can have an active retirement, but maybe when I'm retired I'll just be happy to sit on my porch with a radio, drinking a cocktail, and occasionally yelling at the neighborhood kids to get off my lawn.

quote:

My solution is the middle way.

i fully agree. I live as cheaply as I comfortably can & wish to, and divide the "extra" earnings between retirement/savings and travel.

Balance is key. Know the short and long term costs and benefits of any path you may take, and be comfortable with those decisions. Then get busy living it.

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Uhh yeah, but you will be SEVENTY-FIVE! Traveling is certainly not as easy when you're that old. It's much more pricey in terms of insurance, and accommodations (a 75 year old staying in a hostel?) Some stuff is just better experienced when you're young.

My MIL spent 7 weeks backpacking in South Africa in her mid-60's. She's planning to walk the 800km Camino de Santiago de Compostella this spring at 69, staying in refugos. It's about attitude more than age. I'm sure there are plenty of people of all ages who prefer 5 star accommodation to hostels. And vice versa.

I try to max out my RSP contribution (18% of gross income, tax deferred)and hope that will be enough.