Initially, when I began writing about retirement planning, it felt challenging for me to envision reaching that phase of my life. However, after ten years have passed, it has become simpler to see myself as a retiree—perhaps because I frequently feel exhausted from juggling an intense workload with managing kids (though that’s another topic entirely).
At one point, whenever I considered my individual retirement, I pictured retiring from work at the age of 65. However, I have altered my perspective, and perhaps you should consider doing the same.
Why retiring at 65 might not be the ideal choice.
At age 65 is when you become eligible for health coverage. Medicare For these and various other factors, it often turns out to be quite a common time for people to decide to retire. In the past, I believed it constituted an appropriate stage at which one could conclude their professional journey and transition into what comes afterward in life.
I have altered my perspective on this issue due to several factors. Primarily, Americans as a group are enjoying extended lifespans nowadays. Although numerous recommendations suggest strategies to ensure a retirement fund lasts over three decades, opting to retire at age 65 might require many individuals to extend their financial resources beyond thirty years.
Moreover, turning 65 doesn't signify reaching the full retirement age. Social Security starts at. For someone in my position, that age is 67.
There have recently been discussions about Social Security cuts Since I began writing considerably about the program roughly a decade ago, I still anticipate that Social Security will manage to provide some payments to current workers. Additionally, I would prefer not to reduce my individual monthly benefits by opting to claim them at the age of 65.
Sure, you can choose to retire at 65 but delay applying for Social Security benefits for a few additional years. However, personally, I'm considering file for Social Security benefits at age 70 For the maximum monthly payment this program offers, I’m uncertain whether postponing benefits for the entire five-year period would be ideal, since it might lead to relying on my savings during that time. retirement plan savings to a significant extent.
However, maybe the most significant factor why I now believe that 65 is not an ideal retirement age is because I envision myself continuing. getting bored Given where I am in life, regardless of when exactly this phase began, it makes sense for someone like me to continue working indefinitely. This decision is driven equally by considerations of my mental well-being as it is by financial concerns.
Consider thoroughly before deciding on your retirement age.
You might believe that 62 is the ideal age for retirement. Alternatively, you could feel that retiring at 58 or 71 would be better suited for your needs.
In either case, it’s wise to periodically reassess your projected retirement age and ensure that the reasoning behind selecting that particular age remains valid. For instance, you might resolve to retire at 60 but upon reaching that milestone, discover that you’re not quite prepared to cease work.
If you decide to retire at 65, ensure you fully grasp how this decision impacts your savings, Social Security benefits, and overall finances. While Medicare will be accessible to you then, covering healthcare costs under a health plan, remember that this is just one aspect of retirement planning. There are numerous other factors to consider as well.
SPONSORED:Our credit card specialists recommend using this card, potentially earning you up to $1,306 (really).
This top-rated card boasts one of the most generous cashback percentages available (reaching up to 5 percent), provides 0% APR on both purchases and balance transfers for a full 15 months, and maintains an impressive $0 yearly fee.
These are merely some of the reasons why our specialists enrolled for this credit card After examining it, keep in mind: Credit cards offer superior protection against fraud compared to debit cards and can assist in improving your credit score if utilized correctly. Please note that although our views remain unaffected, we might earn commissions from featured products.
Check the Credit Card Details ›
The Motley Fool possesses a disclosure policy .