! Delaying Retirement, But Not Your Retirement Dreams
Christine S. Fahlund , Ph.D. and CFP, is a senior financial planner and vice president of T. Rowe Price Group, an investment management firm based in Baltimore, Maryland.


Benny from MS posted over 6 years ago:

The only problem with working until 70 is that the expected life span is only 85. 15 years of retirement isn't much and the older you get the less likely your health will allow you to do the things you wanted to do.

David from IL posted over 6 years ago:

It also depends on the physical demands of your job. For example, if you are a steel worker your retirement age would be different than if you worked in an office.

Gary from MN posted over 6 years ago:

Great strategy if one is physically able. Warren Buffet is 80 and still going strong. Personally, continuing to add value and the feeling of contributing to society through meaningful work may increase our life expectancy.

Claudia from OR posted over 6 years ago:

"Working part time beyond age 62" sounds great until you try to find a part time job that includes health care benefits--even partial benefits. Age 62 to 65 is three scary years.

Ray from SC posted over 6 years ago:

There is far too much emphasis on early retirement by the media ,little of which is of any value .All other things being equal , work until age 67 and keep yourself in good physical shape

Thomas from NJ posted over 6 years ago:

My goal is to work to 67 and keep in shape.

Tim from PA posted over 6 years ago:

I like this plan. I am 9 years away from 62 and really don't expect to fully retire, but would like to have more freedom to do things that I am unable to do today because of college and other expenses.

Randy from FL posted over 6 years ago:

Life expectancy needs to be factored in to any discussion of retirement. If people knew how much they are reducing their lifetime by smoking, diabetes, high blood pressure, and obesity, maybe they would change their lifestyles. Of course, another factor is being sedentary, so working at a desk and computer can be hazardous to your health! Changing from a desk jockey job to delivering mail or pizzas or the newspaper would be beneficial to your health.

Nancy from MD posted over 6 years ago:

I like the idea, particularly when clients have the emotional roadblock to retirement because their income-producing ability has ceased. If they only spent their discretionary money on doing the things they plan to do in retirement may help them to adjust better to the actual retirement event.

Barbara from NY posted over 6 years ago:

I like the idea of staying mentally stimulated which a job sometimes provides. If we look at research about brains, it is important to stay stimulated by relationships for helping with brain health.

So having a lighter work schedule and being able to do more other activities while not using retirement income and funds makes good solid sense to me. One still gets the stimulation from contact with the workplace.

Erik Johnsson from PA posted over 4 years ago:

If the couple stop contributing 15k to their qualified plans, they will have less than 15k extra income. The entire 15k will be taxed at current rates. If they are in the 25% bracket, their net additional spendable income will be less than 12k.

Careful analysis should be completed before making this decision. Factors to consider is the future value of the tax deferral on the 401(k) contribution, and the increased tax bracket that may arise from foregoing the contributions.

Demetrius Andressakis from IL posted over 4 years ago:

In general I agree with the strategy. One item I disagree with is the amount you need at retirement as a percent of your income. Let's say that the couple in our example makes 100K a year and needs 75% or 75K to maintain the same life style at retirement. Now, let's assume that the same couple makes 200K but they live on 100K and they invest the rest. Again, in the second case the couple will need 75K at retirement. In other words what you need at retirement it shouldn't be a % of your total working income but a % of the income you spend to live on.

Richard Nelson from NJ posted over 4 years ago:

What is the rational of expecting only 75% or that you spend to live on in retirement?

It would seem that after retirement one would require more more spend as there is now time to time to travel, hobbies, entertainment...

Neal Mogk from AZ posted over 4 years ago:

It seems that too little is said about having your mortgage paid off by the time you retire. That's one of our biggest expenses that we expect to be done with by that time, decreasing the amount we need to live on in retirement. In essence, one is pre-paying your biggest living expense, and it's no longer subject to inflation as opposed to some sort of rental.

Jerry Overman from VA posted over 3 years ago:

Retired at 62 with nice pension. Will wait until 70 to take SS primarily to assure wife can step up to higher benefit when I pass along. Currently do volunteer work, and small part time job. Wife still works as she is 5 years younger. Now 65 and struggling with all the issues surrounding Medicare and income addition to medicare payments.

Stephen Tradd from FL posted over 3 years ago:

The mistake here is that you are following a rule of thumb. Instead of planning that you need 75% of your income calculate your expenses and itemize fixed and discretionary expenses. Many do not live off all their earnings, and there are many expenses that will be less. If you really want to retire early, then maybe you do not travel as much, or travel but be more frugal. If it gets right, slow down on the discretionary spending. But blindly following a rule of thumb (which I have seen ranging from 60-80% of income) doesn't take sense.

Stephen from FL posted over 3 years ago:

I hate autocorrect...as seen in previous posted comments

CHARLIE from COLORADO posted over 3 years ago:

I'd like to suggest that one should never quit working, for many of the reasons in the above discussion. Work keeps us sharp, mentally and physically; hence the people who start on volunteer efforts.

The goal for me, by the time I reach "retirement age," is to be set up in activities that provide income but don't seem like work. For example, leave my current corporate job and spend my remaining years taking care of my ranch. Lots of good wholesome physical activity, but it doesn't seem like work because it is so enjoyable.

Daniel Wickenhauser from IL posted over 3 years ago:

When I calculate my retirement income against anticipated expenses, SS does not even enter the calculation. I am able to decide on when I start SS based on when I want excess income to my retirement. My thoughts are to get it while I am able to spend it on quality of life, not the extension of life through medical bills and extended care. This is only short sighted if you have not prepared for retirement through your own investments and pensions.

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