By Morgan Quinn
Many people dream of the day when they can finally quit working and enjoy retirement. But to Warren Buffett, retirement “is not my idea of living,” he has said.
He might be on to something. At 85 years young, when many of his contemporaries have long since retired, Buffett remains at the helm of his highly successful company Berkshire Hathaway. With a net worth of $66.7 billion, he’s also one of the richest men in the world and one of the most successful investors of all time.
If you’re thinking about retirement, take a page from Buffett’s playbook and reconsider. Here are five reasons why Buffett will never retire and why you shouldn’t, either:
Americans are living longer and they’re healthier than ever before. So it makes sense that older workers are staying put, with many saying they plan to delay their retirement date or never stop working. In fact, the Bureau of Labor Statistics projects that by 2020, those 55 and older will make up 25 percent of the labor force.
However, not everyone will be able to work long into their golden years. According to the National Institute on Aging, 35 percent of people age 55 to 59 were forced into retirement due to health problems. While Buffett is healthy and sharp as a tack, he has said that even if his muscles weaken and his stamina slows, he’ll continue to do business as usual because that won’t affect his ability to pick stocks or buy companies. Maintaining your health gives you the option to work as long as you want.
YOU WON’T HAVE A FIXED INCOME
As soon as you leave the workforce, you’ll likely be living on a fixed income and counting on your retirement savings. If the market tanks, as it did in 2008, or inflation rises significantly, you could find that your purchasing power has diminished. And that could have a substantial impact on your ability to live comfortably.