Pre-Social Security, How Exactly Did Amercians Retire?

Did you ever wonder what Americans did for retirement benefits before Franklin D. Roosevelt signed the New Deal into law in 1935? And I am not just referring to financially, but how did they spend their days. What did they worry about before the safety net?

For this discussion, let's consider that the reason for the New Deal was a response to the Great Depression. Few employers could afford to offer a pension plan and the government recognized that a great percentage of the population did not have any financial recourse after their working years are over.

With our government struggling to come up with the funds to cover all the participants in Social Security, it is time to reconsider how we see our elder years. The day of retirement as a vacation is over. Not to worry, with some forethought and a dose of honesty about the situation you are in, your plan can be a success.

There is a significant difference between 1935 and today that we should consider while preparing for our later years. Then was a labor economy, today is a service economy. In 1935, a wage earner likely retired from a lumber mill, factory, steel mill or the mines. Certainly there were service jobs then but compared to the number of workers and the income they earned, labor drove the economy.

The human body is not designed to endure that type of work for a lifetime but thinking and knowledge and communication are activities that we can do until much later in life. We need to harness this in order to ensure a secure and enjoyable retirement. Said plainly, if you use your body for employment today, either have a plan for retirement for when your body doesn't work or get into a job that doesn't rely on your muscles and bones.

There seems to be some uncertainty for whether or not the governments plan for social security will be there when many of us are set to retire. Betting on that outcome is just that, gambling. Hoping it works out is no reason to not be prepared. You are the most powerful person in your life. Plan accordingly.

If we are wiling to embrace that we must make our own security without government income or a nice inheritance, we should consider these 3 tenants of preparing for financial security in later years:

First, you will need to have a job/career that you enjoy. Do not do something you hate just because it pays. If you going to keep this job until the end, you must find joy doing it. It is an added bonus if you have a job that contributes back to the community. There is nothing wrong with your legacy being related to your career.

Along these lines, keep your ears open for how you can expand your horizons within this field. In your younger days, you may have been on the hunt for job or role that pays better or has more potential for growth. As you get near and into your senior years, job growth may not be your top concern. Perhaps part time hours or less stress or even a more interesting position would be your driver. Regardless, learn more about the industry you enjoy to create more options later.

Second, let's take a good hard look at your life wish list or life to-do list. This is the time to get honest about those items you can do now and those that can wait. If you really want to hike Machu Picchu, do not wait until you are 70. If you want to put all your photos in a single photo album, that can wait for when you need more time to rest.

Getting older is not a disgrace or something to be survived. We should all hope to get old. But the reality is that our bodies will age. Don't wait until it is too late to do the things you have dreamed.

Lastly, your expenses need to be smart and low. As you get older, start looking at your expenses from a long term perspective. Own a car known for reliability. Pay off you debt now so you don't carry that cost into retirement. If you plan to own your home until you die or you cannot take care of yourself, set your home up for low-maintenance. You don't need me to tell you how to decrease debt but consider this: debt you do not pay off before retirement will carry into your retirement.

You worked too long and hard to not take pleasure in your later years. You may have to keep your job, but that is no excuse to not enjoy it and still live comfortably.