Ok, the 40 year plan.
Otherwise known to some people, usually those in lower skilled and minimum wage jobs, as the 50 year plan!
I would guess that all over the developed western world, the mantra for generations growing up has been this:
The 40 Year Plan:
- Work hard in school to get good grades.
- Advance into high school and get excellent grades in your specialist subjects.
- Get into college or university and get a good degree in your chosen subject.
- Get a good job with your degree in your early/mid 20’s.
- Work hard at your career and get some promotions.
- Meet someone, buy a home, get married and have children:
- Save money into your retirement fund.
- See your children grow up and follow your path.
- Help your children with marriage and home setting up costs.
- Retire in your 60’s after 40 years of hard work and relax.
Or the 50 year plan:
- Leave school in your mid teens.
- Flit from one poorly paid job to another.
- Spend extended periods out of work and rely on welfare or social security.
- Rent a home.
- Work, or not, for 50 years and retire on a state pension.
Maybe these plans worked out more or less like this in the 1950’s, 60’s or 70’s but what about now?
Welcome to the new reality!
If you’re on the 40 year plan at least you had a reasonable start to your working life but in reality what do you have?
- Student debt, probably consumer debt and huge mortgage debt, car finance, private school fees, health insurance etc., etc.
- Job insecurity, redundancy, rising divorce rates, falling savings rates, less “fun” money, state pension age getting further away, poor annuity rates etc., etc.
But if you’re on the 50 year plan what do you have then?
- For a lot of people it probably means 50 years of making ends meet, renting a home and hoping the landlord keeps it in decent order and doesn’t give you notice to quit, existing on benefits or welfare for a while or even years.
- No money for family “fun” time, debt and the worry that goes with it, no savings, no private pension and a pittance of a state pension that is further away now than when you started out.
How is the New Reality looking for you and, more to the point, what can you do about it?
Scary isn’t it?
Thanks for taking the time to read through this page, if I can be of help to you please feel free to drop me a comment below and I’ll reply as soon as I can.
Founder of Extra Income For Life