Retirement Lessons From Ebenezer Scrooge

Many of us have seen the classic, A Christmas Carol, or have at least heard of the infamous Ebenezer Scrooge, the character Charles Dickens described as tight-fisted, squeezing, wrenching, grasping, clutching and covetous. 

Despite some of these flaws, Scrooge also possessed some qualities that make him a decent role model for achieving a secure and meaningful retirement.  Below are three ways we should emulate (in moderation) to improve our retirement outlook.

1. Scrooge had a hard work ethic. Scrooge always put in a full days work.  The commitment to work that Scrooge displays is crucial to successful retirement because you cannot build a nest egg without regular income and the amount you earn and number of years on the job will determine you Social Security benefit—a key source of retirement income. 
2. He was a prodigious saver.  Scrooge knew about saving a buck.  Although he went a little far by living in the dark, keeping a small fire and eating gruel from a saucepan, he had the right idea; if you live below your means by not splurging on vacation, cars and big houses, you will have a better chance of saving that can lead to a better retirement. 
3. Scrooge (eventually) understood what mattered.  While it took a few visits from ghosts to transform Scrooge, he morphed into a generous and compassionate person who sends a turkey to the Cratchit home for Christmas dinner.  Similarly, retirement planning is not just about the money.  It is about creating a retirement lifestyle that has meaning and purpose as well as financial security.

See Walter Updegrave, What Scrooge Can Teach You About Retirement Planning, Money Magazine, Dec. 17, 2014.