Late retirement: expectations vs. reality

[boatfishandnature]

Very interesting study about the trend of planning for a late retirement vs. the reality (so far at least) that people are actually retiring earlier.

Health reasons (self or family member) and changes at work are the primary reasons while so many people ( about 50%) end up retiring earlier than they planned.

Much better to plan for an early retirement and keep open the possibility of delaying it if that is doable and desirable when you reach your planned age.

Details are here:Your Retirement Date: Expectation vs. Reality | Stites on Estates

 

[davismills]

Very interesting and somewhat alarming. I'm afraid of means testing in the future.

 

[Greencheese]

Adding in higher social security ages don't help either

 

[unclemick]

Canned at age 49. Given I(we) would have probably had to move to California or Florida to find work. Brutally downsizing budget to make ER work in New Orleans - worked well til Katrina.

One of the worst dark horse choices was Kansas.

heh heh heh - notice post Katrina - in KANSAS! - on a hill waay above the wide Missouri.

Don't tell anyone Kansas City is really a fun place to live. Who knew?

 

[Big_Hitter]

thanks for the link - indeed, most early retirements are health related

 

[unclemick]

On the health thing my attitude changed in ER. Along with cutting expenses went on a diet and exercise regimen radically changing my working lifestyle.

heh heh heh - At least on a subconscious level I must have awakened to the relationship between unplanned early retirement and health.

 

[M Paquette]

Changes in health seem to be the biggest item to upset retirement plans. I suspect the second biggest would be suddenly losing that 'last job before retirement'. Hunting for work while in one's late 50s can be hard on the pre-retiree and on their portfolio.

Other externalities of low probability that might dink about eventual retirement income pale in comparison to loss of health, or job and portfolio. (AKA people worry about the wrong things. I blame cable TV news.)

 

[Independent]

First, you should seek to fund your core (more basic) lifetime retirement needs by age 60. Savings from income earned after age 60 can fund “extras” such as travel, education funding for grandchildren, or philanthropy.

Second, decisions about paying for children’s college education shouldn’t rely on workforce participation after age 60.

Always good advice.