The other day at work we were discussing upcoming changes to our company retirement plans.

Word going around and ghosted in recent company memos, is that they are going to cancel the pension program.

The assumption is that they will pay out lump sums to current participants and of course, offer nothing to future employees.

Some are very upset because they are about to enter into the years where benefits begin to escalate on the curve.

Others are more resigned, almost preferring to not wait another 20 years to find out whether the company will ultimately honor this commitment - they're anxious to get their money out and rolled over into the 401K or IRA.

As the discussion ensued, it was interesting to see the group divide into two camps - those who are looking to replace their current income and lifestyle with equivalent income streams and those who plan to live a more frugal lifestyle in retirement.

That brings me, finally, to my point:

Are you hoping/expecting to maintain your current lifestyle in retirement? or..

Are you willing to trade down in exchange for the freedom of not having to go to a job every day?


MG