Retirement or Recession – Compare the Terms
Retirement or Recession – Compare the Terms
We are beginning to talk about the “R” word far too much recently. While searching for a description of recession and how it could affect retirement, unfortunately it soon became obvious that many of the terms used to describe recession could also describe retirement.
What is a recession? When livelihoods and homes are threatened and credit is often harder to come by, the inevitable result is a reduction in spending.
This is the stage when we realize banks will not provide the credit that they provided in the past.
The strange fact is that nobody seems to know exactly what a recession is. The word is as hard to define as the word love.
What is retirement? When livelihoods and homes are threatened and credit is often harder to come by, the inevitable result is a reduction in spending.
This is the stage when we realize banks will not provide the credit that they provided in the past.
The strange fact is that nobody seems to know exactly what retirement is. The word is as hard to define as the word love.
The following are terms used on the internet to define recession. Think of each of these phrases in terms of retirement as well instead of recession and they may surprise you.
-A significant decline in general economic activity extending over a period of time.
-A time of less business activity, usually lasting at least three quarters of the year. (maybe much longer)
-A decline in business activity.
-Two consecutive quarters of decline.(at least)
-Broadly defined, it is a downturn in economic activity.
-Usually marked by job layoffs and high unemployment (putting it rather mild)
-The constricting phase of the business cycle, when output declines.
-Decrease in business activity.
-A temporary depression in economic activity or prosperity. (how temporary?)
-A period of decline in the overall economic activity.
-A cyclical downward movement in the economy (how long is the cycle?)
True retirement means we have finally moved from denial to acceptance of the “R” word, often the reality faced appears to grow worse with each passing day. A recent quote that said “Americans are much better spenders than savers”, So too, “Retirees are much better spenders than savers”.
Comparing recession and retirement is probably unfair. The main reason, we can prepare for retirement since it is usually a definitive date but that isn’t true for recession. There is one very major problem common to both, recession can lead to a depression and retirement can lead to depression, especially when we don’t have financial stability and if we are not prepared for the proper use of leisure time.
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