Here’s what it’s like to retire in the United States
Lesson summary
Hi there everyone, it’s Jeff and this is Plain English, where we use stories to help you upgrade your English. When you listen to stories in English, you start thinking in your new language and you’ll remember more.
This summer, we’re doing stories all about daily life and culture in the United States. We talked about kids a few weeks ago, what it’s like to go to school in the U.S. Well, today we’re talking about a different season of life: retirement.
You’ll learn about what retirement is like in the United States, with the big caveat that this episode is very general. There are many, many ways to do “retirement,” but today we’ll talk, generally, about what it’s like.
In the second half of the episode, you’ll learn what it means to “stay put.”
This is lesson 702 of Plain English. And that means JR, the producer, has uploaded the full lesson content to PlainEnglish.com/702.
What is retirement like in the United States?
What do you think of when you hear the word, “retirement”?
Some people look forward to it . After a long working life, they can finally relax, pursue hobbies, travel, and spend time with family. Other people dread it: they’re worried about their health and worried they might not have enough money to pay for the lifestyle they want. Still others put it out of their minds: retirement is too far in the future.
Whichever camp you fall into , you might be curious what retirement is really like in the United States. That’s a hard question to answer, since there are about 50 million retirees in the U.S.—that’s like the population of Spain. But let’s try.
When do people retire? There is no mandatory age to stop working. But the average retirement age is about 64. There used to be a large gap between the retirement ages of men and women, but that gap has narrowed in recent years. Men typically retire at age 65 and women at age 63.
Next, how do people pay their bills in retirement? In the U.S., we have a public pension system called Social Security. But this is not intended to fund a person’s entire life. The average monthly Social Security check is $1,900—not very much for an entire month. Seniors can start collecting their Social Security benefits at age 67; however, those who wait and take it later get more money each month.
Americans are encouraged to save money in special retirement savings accounts while they are working. There are several different ways to do this, but they all take more or less the same form.
Employees deposit money from their paychecks during their working lives. Employers sometimes, though not always, contribute a little money, too. The employee invests that money in approved investments, including stocks, bonds, mutual funds, even , in some cases, real estate.
The median worker, retiring at age 65, has a retirement savings balance of about $200,000. That might sound like a lot of money—and it is—but that’s not enough to fund a luxurious lifestyle. And because the savings plans are optional, a lot of workers reach retirement age with no additional savings.
You might be wondering about employer pension plans. Some lucky employees have a pension plan, but that’s rare these days . Government employees often get pension benefits. But most private sector workers do not get a monthly pension in retirement.
Saving for retirement really is an individual responsibility in the United States. Those who save more during their working years enjoy more flexibility in their retirement years.
Many people do work in retirement, either out of necessity or just to stay busy. How can it be retirement if they’re working? A lot of retirees take part-time or seasonal jobs, which are less demanding than their main careers were. Some drive for Uber, some work in retail, some do part-time or substitute teaching, and others do consulting or part-time work in their former careers.
Where do retirees live? About a third of retirees stay in the houses they lived in while they were working. Those who choose this option say they like being close to family and friends and they like their home. It can also be hard, financially, to buy a new house if you don’t have an income. So staying put can be a good lifestyle and a good financial option.
But a lot of retirees move. There are a few good reasons to do this. The first is simply size. After their working years, many retirees find they don’t need a larger house. Their kids are grown. And the maintenance of a large house gets harder as the years go by.
Cutting the grass, shoveling the snow , cleaning the gutters, fixing appliances: this is harder for older people. It costs money; it can be physically demanding. And if retirees don’t need a large family home any longer, it often makes sense for them to go somewhere smaller.
And there are options. There are many housing communities that include smaller, attached houses, where outdoor maintenance is handled by a local homeowners’ association. Pay one monthly fee, and never worry about landscaping or snow shoveling again: that’s not a bad deal, right?
Why else would retirees move? One word for you: cold. You might not mind the bitter winters of the Midwest or northeast in your 40s and 50s. But that climate is hard on people in their 60s, 70s, and beyond. It’s less comfortable as you get older. And with more free time, many retirees want to be outside for more months of the year. So many retirees move south , where the weather is nicer.
What do people do in retirement? A lot try to stay active by taking walks, going to the gym, and playing golf, tennis, or pickleball . They pursue hobbies like gardening, painting, musical instruments, and reading. Many choose to volunteer a few times per week. Others join clubs and organizations, go to community theater, or travel.
Here’s a popular trend: a lot of seniors like to take university classes. College towns are great places for retirees because they’re often less expensive than suburbs of big cities and they have great, low-cost amenities. Universities and community colleges often let retirees take classes without having to take tests. Other universities offer classes specifically for retirees.
Many retirees help with grandkids, too. Childcare is expensive. So a lot of retirees help their own children out by watching grandkids after school.
Not every retiree takes this active approach. A lot simply like to kick back and relax after a long life of work—and if that’s what they want, well, that’s a well-earned privilege.
Jeff’s take
I don’t think about this a lot, but I would need to stay busy. I’d read a ton of books—history and fiction. I’d stop reading business books. I’d still exercise and stay active. I’d be in museums . I’d go to sports games. I’d visit national parks . I might finally try to grow a lot of plants. I’d love to have a dog.
We’ll see how it works out. We have lots of retirees in the Plain English audience. And I absolutely love that. I love hearing from all the listeners and members who make Plain English part of their retirement years. Hats off to you!
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