Retiring At 65: Is It Possible?
Posted on October 30, 2015
As you approach your peak earning years, you're beginning to think about the idea of retirement. You ask yourself, “When can I
retire? Will I be able to retire at 65?”
You turn to your family. You ask your
colleagues. You realize the question of when you can retire doesn’t have a
simple answer. It seems the average retirement age is no longer 65. But then,
when will you be able to leave the workforce? That depends on what you want out
What retirement questions should you ask?
What do you value? Your health, family, or income? Your
ability to retire depends on several key factors:
satisfaction. Are you motivated to come to work every
day? If you are not satisfied with your job, you may be stressed and unhappy.
This can negatively affect your productivity at work, putting your job in
needs. Does your family depend on you to support them? Are
your children in college? Your family may rely on you for financial support.
Your children may need your help to pay for their college tuition. You need
enough money put away to support your family before you retire.
you feel well enough to do your job effectively? Your health can affect both
the way you work and how you emotionally feel. You may consider retiring if you
are experiencing health issues that make working difficult.
insurance coverage. What benefits will you receive
post-retirement? You may not be able to rely on health insurance coverage or
your company’s pension plan. Look into the requirements to see if you will be
retirement income. Will you be able to maintain a high
standard of living after you retire? Or will you have to live on a much smaller
income? If you have earned and saved enough prior to retirement, you may have
more income coming in when you retire.
that you can only choose one of these factors in retirement. Which one would
you choose? What do you value the most? How many of these will you
realistically be able to achieve?
up, you remember your parents telling you that you should be able to retire by
the age of 65. Throughout your career, you have seen your colleagues taking
early retirement. Will you be able to do that too? If you are thinking of
retiring early or planning
to retire by the age of 65, you may not like the recent research findings
that the average retirement age is increasing.
Why is the average retirement age increasing?
The average American man in the 1990’s retired by
the age of 62, and the average American woman retired by age 59. Alicia Munnell
– researcher and the director of the Center for Retirement Research at Boston
College – has noted that the retirement ages since then have increased. As of
2010, men and women are working until ages 64 and 62, respectively.
Researchers Rutledge, Gillis, and Webb were interested
in further exploring the question, “Will the average retirement age continue to
increase?” They used data from the Health and Retirement Study to conduct their
analysis and then utilized these findings to estimate future retirement ages.
The researchers believe a few special reasons are
contributing to this increase:
security reforms. Social security is one of the main
sources of income for many retirees. However, there has been a continuous
decline in Social Security retirement benefits. Seniors qualify for full Social
Security benefits only after attaining a certain age (typically 65) is
encouraging further delays in the retirement age.
workforce. Seniors are found to be living longer these days.
They are staying in better health. They have higher levels of education and are
climbing the corporate ladder faster than ever. They are not being forced out
of work due to their health or job position, delaying the average retirement
in employment-based retiree health benefits. According to
Fronstin and Adams, the amount of employers offering retiree health insurance
coverage and benefits is continuing to decline. These lower rates of retiree
health insurance coverage are increasing the average retirement age. Retirees
are not able to depend on this coverage and need to keep working to be covered.
of health and job satisfaction, the researchers found that many seniors are not
receiving enough benefits to retire at an earlier age. They must delay their
retirement to stay protected. The average retirement age, in turn, is
How can you prepare for retirement?
You cannot control the changing Social Security
policies and the decline in retiree health benefits. However, you can prepare
for retirement by re-prioritizing your values and starting to prepare now.
You can start by saving
more money, investing wisely, being aware of Social Security trends, and
delaying the use of Social Security. These recommendations will provide you a
better sense of security.
Until you feel fully satisfied with your savings,
the availability of benefits, and overall achievements, the best option for you
is to keep yourself healthy and motivated in the workplace.
Remaining healthy and motivated to work will
increase your productivity and in turn, outlook on life. The longer you stay in
the workforce, the better standard of living you will have post-retirement.
can you stay healthy?
- Eat proper meals
- Stay hydrated
- Get a good amount of sleep
- Avoid caffeine
can you stay motivated?
- Seek active feedback from your
- Create positive working relationships
- Challenge yourself
- Think positive
- Reward yourself
- Work with a professional coach to
reinvent your career
Will you ever be able to retire? Yes, you will!
average retirement is increasing, but that doesn’t mean you won’t be able to
retire. You now know why seniors are finding it harder than ever to retire. But
with above considerations in mind, you can make a plan to retire. From
investing wisely to remaining aware of Social Security trends to aging in place with
a medical alert system,
it is never too late to act and to prepare for retirement.
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