24 Oct Should I Retire at 65?
While age 65 has traditionally been a time at which many people retire, making this transition is a personal choice that depends on a variety of factors such as your health and finances. Plus, the meaning of retirement continues to evolve, with many people retiring both earlier and later than age 65 depending on their circumstances and preferences.
To determine whether you should retire at age 65, it’s useful to put together a retirement plan, as we do with our clients as CERTIFIED FINANCIAL PLANNER™ professionals in the Sacramento area. Your retirement plan should include an analysis of how much retirement income you’ll have to see when retirement will be financially possible for you, as well as consider what you’ll do for fulfillment in retirement.
We find that many people enjoy working, so they continue to work past age 65 and potentially transition into part-time work a few years later. Others decide to work longer for financial reasons, but they still may be able to work part-time to supplement their retirement income once they start receiving benefits such as Medicare and Social Security.
On the other hand, if you prefer to retire sooner and have the means to do so, you can certainly take an early retirement before age 65. Many people find fulfillment outside of work and would prefer more time for other endeavors such as traveling or spending more time with family.
There are no hard and fast rules for retirement other than the ages at which you’re eligible to start receiving benefits and when you can withdraw from your retirement accounts. But your eligibility does not change whether you’re working or not, and if you have money saved outside of retirement accounts, you may be able to draw on these savings for income if you’d like to retire early.
Working with a financial advisor can help you determine when to retire based on what feels comfortable and feasible for you, rather than tying this stage of your life to a specific age.
Schedule a complimentary, 15-minute call with a fee-only financial advisor today to discuss your personal situation.
Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor serving the greater Sacramento area with an office in Roseville, CA. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.