Everyone dreams of a comfortable and stress-free retirement, but when is the right time to retire? Some aim for early retirement at 50 to enjoy more freedom, while others wait until 65 or even 70 to maximize financial security. The reality is that there’s no one-size-fits-all answer. In this post, we’ll explore different retirement age options and help you determine which one is best for you.

Resources:

• • FREE RETIREMENT READINESS REPORT 
  • Vanguard’s Secret to Spending More in Retirement (GAME CHANGER)
  • Retire with $6M: Here’s what life actually looks like

What’s the Best Retirement Age? Breaking Down Your Options

Everyone dreams of the perfect retirement, but what is the ideal retirement age? Should you aim for 50, wait until 65, or push it to 70? The right time to retire depends on your financial situation, health, and lifestyle goals.

This guide will break down the pros and cons of retiring at different ages, including financial considerations that can impact your decision.

Retiring at 50: The Dream and the Reality

Retiring at 50 is an ambitious goal—escaping work early and enjoying decades of freedom. But does this retirement age make sense financially?

Pros of Retiring at 50

• More Time for Hobbies and Travel: You can enjoy your healthiest years pursuing passions and spending time with family.
• Flexibility to Pivot: Early retirement allows you to explore part-time work or passion projects without financial pressure.

Challenges of Retiring at 50

• Funding a Long Retirement: Retiring early means stretching your savings for 40+ years. This requires a significant investment portfolio and a well-planned withdrawal strategy.
• Health Insurance Gaps: You won’t be eligible for Medicare until 65, so private health insurance can be a major expense.
• Reduced Social Security Benefits: Claiming Social Security early leads to lower monthly payouts.

Case Study: Chris and Jennifer

Chris and Jennifer, both 45, want to retire at 50. They have $2.5 million saved, but their biggest concern is covering healthcare and making their investments last. By structuring their withdrawals and planning for long-term expenses, they can make this retirement age work—but it requires careful financial discipline.

Retiring at 65: The Traditional Retirement Age

Most people consider 65 the traditional retirement age. This is when Medicare kicks in, and Social Security benefits are available without early withdrawal penalties.

Pros of Retiring at 65

• Full Medicare Coverage: No need to worry about expensive private insurance.
• Stronger Social Security Benefits: Delaying retirement boosts your monthly Social Security income.
• Less Risk of Outliving Savings: A shorter retirement period means your money doesn’t need to last as long.

Challenges of Retiring at 65

• Less Time for Enjoyment: Waiting until 65 means fewer years to travel and explore new hobbies.
• Work Burnout: Staying in the workforce longer can lead to stress and dissatisfaction, especially if you no longer enjoy your job.

Retiring at 70: The Financial Power Move

Delaying retirement until 70 may not sound appealing, but it has major financial advantages.

Pros of Retiring at 70

• Maximum Social Security Benefits: Your monthly benefit increases every year you delay claiming after 62.
• More Time to Save and Invest: Working longer means additional income, reducing the risk of running out of money.
• Stronger Financial Security: With a shorter retirement period, your assets have more time to grow, allowing for a higher standard of living.

Challenges of Retiring at 70

• Less Time to Enjoy Retirement: Waiting until 70 means fewer active years for travel and recreation.
• Health Concerns: Some people may experience declining health, making it harder to fully enjoy retirement.

How to Choose the Best Retirement Age

There’s no universal retirement age—it depends on your financial security, health, and personal goals. Here are key factors to consider:

1. Do you have enough savings? Your portfolio should support decades of withdrawals without running out.
2. What’s your health status? Retiring earlier allows for more active years.
3. How do you feel about work? If you love your career, working longer could be fulfilling.

The Bottom Line

Choosing the right retirement age isn’t just about hitting a specific number—it’s about having a plan that aligns with your financial and lifestyle goals. Whether you retire at 50, 65, or 70, the key is to build a strategy that ensures financial security while allowing you to enjoy the life you’ve worked hard for.

Managing wealth in retirement requires careful planning, strategic decision-making, and a proactive approach to taxes, estate planning, and family wealth dynamics. By staying ahead of potential pitfalls, retirees can ensure their wealth serves them—and future generations—effectively.

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This does not constitute an investment recommendation. Investing involves risk. Past performance is no guarantee of future results. Consult your financial advisor for what is appropriate for you. Disclosures: https://onedegreeadvisors.com/solutions/#disclosures