Retiring Later Doesn’t Always Pay Off

By Brett Gottlieb

Calculating your retirement income and how long it’s going to last is a big challenge and requires diligent planning. What happens if you come up short?

To avoid this problem, many people think that it’s better to retire later, but that’s not always the case. Sometimes you can’t control when you retire (or at least not to the extent you were anticipating). Because of this, you may find that you have to retire sooner than expected.

According to the 2021 EBRI Retirement Confidence Survey, there is a considerable gap between when a person expects to retire and when they actually retire. While 26% of respondents stated they would like to retire at age 70 or older, only 6% followed through.^[1] Most end up retiring earlier, and often it’s not by choice. There’s always the chance you could lose your job or fall ill. Even if you want to work longer and save more, there’s no guarantee you’ll be able to do that.

Struggling with forecasting your retirement income and think you can put off retirement to solve that problem? Let’s look at a few reasons why retiring later is not a reliable strategy.

You May Run Into Unexpected Health Problems

Even if you are the picture of health today, you never know what will happen in 5, 10, or 20 years. As you age, your health can suffer. Working longer is not a guarantee, as 34% of retirees in 2021 were forced to retire early due to a health problem or disability.^[2]

You Could Lose Your Job

It is incredibly disheartening if you are in the last few years of your career and your company downsizes, leaving you in the dust when you were counting on the income to provide for you in retirement. In fact, 25% of retirees were forced into early retirement due to changes at their company.^[3] At this stage of life, it’s challenging to find another job when interviewers know you will be retiring soon. While you can keep your skills sharp and take measures to prove your value to your current employer, you just never know what will happen to your company as the years go on.

Your Family May Need Your Help

Your loved ones are aging right along with you. Even if your health is excellent and your company still needs you, you may need to step back from the workforce earlier than planned to take care of a spouse or other family member. Your family comes first, so you don’t want to feel the pressure of working just to have enough in retirement if the unexpected occurs. It’s not fun to plan for contingencies like this one, but having a proactive mindset can provide you with peace of mind.

You Might Just Need a Change

When you’re in your 50s and still have years to go before you retire, it may seem simple enough to push out your retirement date from 65 to 70. But what happens when, at 63 or 64, you can’t imagine working for another six or seven years? If you were banking on working until 70, you might not have enough saved.

The younger you are when you retire, the more energy and health you’ll have to enjoy retirement. Many retirees regret spending their best retirement years grinding away at work. Sure, they had more money when they finally did retire, but they had less time to enjoy it.

Since you can’t predict the future, what are some other ways to protect your retirement if retiring later isn’t an option?

Create (and Stick to) a Plan

Every situation is different, and while you may be able to retire when you want to, there are no guarantees in life, and you can’t count on retiring later to make your retirement income last. Instead, you should have a retirement plan you can stick to that makes you feel confident in your retirement.

At our firm, we are here to help you plan for retirement and answer any pressing questions you might have about this important milestone. Together, we can make smart decisions about your money and retirement income. If you’d like to discuss your retirement plan further, email us at info@ComprehensiveAdvisor.com or call (760) 813-2125.

About Our Advisors

Brett Gottlieb is the founder of Comprehensive Advisor and a financial advisor with nearly two decades of industry experience. He graduated from California State University-Chico with two bachelor’s degrees in Business Administration and Economics. Brett is Life Insurance licensed in several states. He is passionate about guiding his clients on retirement income planning, helping each client pursue their specific retirement goals and defending the assets his clients have worked so hard to achieve. Brett is a California native and currently resides in San Elijo Hills with his beautiful wife and three children.

With a combined experience of over three decades in the financial services industry, our advisors hail from some of the largest independent broker/dealers and banking institutions in the country. They have dedicated their professional careers to creating personalized financial solutions for individuals and families who seek successful retirement planning and currently offer investment advisory services through AE Wealth Management, LLC. Our advisors take a common-sense approach to the planning process and work with clients to create a retirement road map to help ensure their assets are protected and they receive the income needed to enjoy their future. Based in Carlsbad, California, they work with clients throughout San Diego County and beyond. Learn more by connecting with Brett on LinkedIn or email them at info@ComprehensiveAdvisor.com.

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Comprehensive Advisor are not affiliated companies. C.A. Financial & Insurance Services, CA Ins. Lic. #6000262. This material is intended to provide general information and is believed to be reliable, but accuracy and completeness cannot be guaranteed. Neither the firm nor its representatives may give tax or legal advice. Investing involves risk, including the potential loss of principal. Any references to protection benefits, safety, security, lifetime income, etc. generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. 1444251 – 8/22

^[1] https://www.ebri.org/docs/default-source/rcs/2021-rcs/rcs_21-fs-2.pdf?sfvrsn=2d83a2f_4

^[2] https://www.ebri.org/docs/default-source/rcs/2021-rcs/rcs_21-fs-2.pdf?sfvrsn=2d83a2f_4

^[3] https://www.ebri.org/docs/default-source/rcs/2021-rcs/rcs_21-fs-2.pdf?sfvrsn=2d83a2f_4