Many people aspire to retire at age 62. In fact, while the average age people choose to retire is age 63, most people would fare far better if only they were to delay the date they retire.
Delayed Retirement - How Much Does Working Longer Help?
According to Working Longer: The Solution to the Retirement Income Challenge, by Alicia H. Munnell and Steven Sass (2008 Washington, DC: Brookings Institution Press.), individuals working full time until at least 66 could enjoy a long and financially secure retirement, with incomes one-third higher than if they retired at 62. That’s an impressive increase and it is driven by multiple factors including 1) boosting monthly Social Security benefits; 2) allowing workers to build up larger 401(k) balances; and 3) reducing the period over which households must rely on their retirement assets.
Don't Retire Yet? Will You Even Be Able To Keep Working?
Particularly in times of rising unemployment and periodic age discrimination lawsuits, it’s fair to question whether you’ll be able to work until age 66 even if you were willing to. While on the one hand, employers value older workers’ productivity and reliability, on the other, employers are concerned about older workers’ wage and health care costs as well as question their ability and desire to keep their skills current. Obviously, this is a question best answered individually. The key takeaway is to properly manage your career, attempting to work to age 66 or longer while preparing for the possibility you may be forced to retire a fair bit sooner.
