Is your planned retirement age realistic? According to many studies, the answer is no. The Employee Benefit Research Institute 2019 Retirement Confidence Survey found two-thirds of current retirees had planned to work past age 64. However, only one-fourth of retirees actually kept working to age 65 or older.
The primary reason often cited for the difference in the expected and actual retirement date is health status. People who work in physically demanding jobs may be limited in the number of years they can work. Other chronic illnesses like cancer, diabetes, and heart conditions also begin to present before normal retirement age, forcing workers to retire sooner than planned. Many times, the spouse may need to retire sooner also in order to take care of an ill or disabled spouse or parent.
I hear people tell me they plan to work until age 70 or longer because they are healthy. However, sometimes people cannot control their retirement age like in the case of a company downsizing. Or maybe you are thinking you love your job and cannot imagine life without it. Over the years, I have observed people’s attitudes about their work satisfaction evolve as they age and get closer to retirement. Most young people start out their careers with plenty of energy and passion, but start to get tired as they age or experience various changes in their work place over the years.
These studies and our experience are why we believe people should plan for various retirement scenarios. We guide clients with our comprehensive financial planning approach, which includes planning for the unexpected. Contact our team of advisors today to begin working on your personalized plan for retirement.