For Health's Sake: Why Retiring at 65 Might Be Too Late

In this new retirement era, where government rule changes and longevity trends are nudging many seniors to work well into their 70s, a "traditional" retirement at 65 might seem way ahead of schedule.  

But if you’re planning to retire at 65 or later, will you still be healthy enough to enjoy it?

According to recent data from the World Health Organization, healthy 60-year-old Americans can expect an average of 15 more years of good health.

Is that really what you've been working, saving, investing, and waiting for? A decade, maybe two, of being well enough to play more tennis, travel all over the world with your spouse, and give back to your community?

Or should you be talking to your advisor about how to accelerate your retirement timeline so you can maximize your Golden Years while still ensuring your long-term financial security?

Why Early Retirement Can Be a Game Changer

For just about everyone, there's a sweet spot where the fresh start of retirement intersects with financial independence and physical well-being. The sooner you retire, the greater your odds of meeting that perfect moment when you're in total control of your new schedule, you have the means to spend your money your way, and you're able-bodied enough to enjoy everything you want to do.

In my 30-plus years helping folks navigate the retirement transition, I've seen just how rejuvenating that freedom can be, especially before age 65. Even folks who enjoy their work can experience a real second wind once they've unplugged from the stress and demands of a 9-to-5.

Instead of gritting your teeth through your commute, imagine starting every morning with a healthy breakfast and a jog through your local park.

Your only lunch meetings will be with friends and family, maybe during a round of golf.

No more late nights at the office, so you'll never miss another one of your grandson's baseball games or a chance to cook dinner with your spouse.

And the only thing dictating your vacation schedule throughout the year will be your travel budget and your bucket list.

Sadly, I've also worked with folks who kept pushing back retirement further than they should have, or more than they needed to from a financial perspective. Some of them just couldn't imagine life without work. Others couldn't wrap their heads around living off their assets instead of a paycheck. And still others kept hoping for a "someday" that they missed because of unexpected illnesses, financial challenges, or even death.

Breaking the Myth of “Not Enough”

Money, of course, is the number one reason that so many seniors miss their wellness window in retirement. Specifically, folks are worried about having enough money to meet their monthly needs, enjoy themselves, and care for themselves as they age.

But what does "enough" really mean when it comes to retirement planning?

Click around on social media and you'll find no shortage of retirement "rules" to follow or "numbers" to hit. But the truth is that no two retirements are the same, and therefore there's no one-size-fits-all way to plan for retirement. In fact, the best "rules" to follow are the ones you've probably been following for as long as you've been working: spend less than you earn, limit debt, and save and invest every month.

Building your retirement blueprint on top of those simple principles can be a challenge, financially as well as emotionally. You can start sketching in some of the finer details by:

• Taking partial retirement: Scale back your work hours to get a better idea of how your schedule and monthly budget will adapt to life without work.

• Reevaluating your lifestyle: Review your monthly budget. In addition to eliminating unnecessary expenses, consider the pros and cons of major changes, such as downsizing or relocating.

• Designing your ideal week in retirement: Take a blank calendar or a piece of paper and divide every day of the week into three blocks: Morning, Afternoon, and Evening. How many blocks can you fill in with activities that will keep you active and engaged?

Completing these exercises and sharing the results with your financial advisor can help you see what having "enough" to retire really looks like. You'll also start to gain clarity around adjustments that might make retiring before 65 a more attractive option.

Taking Action Now

An early retirement goal can reframe retirement as something you're actively working towards, rather than something you're waiting for.

Use that extra bit of motivation to start making some investments that will prepare you to enjoy retirement even more.

Stick to an exercise routine and check in with your doctors regularly.  

Eat better.

Give yourself the headspace to manage stress and unplug from the news cycle.

And talk to a professional advisor about where you want to plot retirement on your comprehensive financial plan.

"Coulda, woulda, shoulda" are three words we hate to hear at Keen Wealth. Schedule a visit and let’s discuss the right time and the right way to achieve your retirement goals.

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About Bill

Bill Keen is a financial advisor with over 30 years of industry experience. As the founder and CEO of Keen Wealth Advisors, a registered investment advisory firm, he focuses on providing personalized retirement planning designed to help people thrive before and during their retirement years. With a passion for educating others, Bill regularly blogs about retirement planning, hosts the podcast Keen on Retirement, and has contributed to Forbes, U.S. News and World Report, Reuters, Wall Street Journal’s Market Watch, Yahoo Finance, and other publications. Based in Overland Park, Kansas, Bill and his team work with clients throughout the greater Kansas City area and across the nation. To learn more, connect with him on LinkedIn or visit www.keenwealthadvisors.com.

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