Planning to Retire at Age 66? Maybe Not

This article appeared in the LDS Living magazine—March/April 2018

American workers currently expect to retire at age 66. But most retirees don’t stay on the job nearly that long. In 2002, the average retirement age had hovered at age 60 for more than a decade.¹ According to a recent Gallup Poll, the retirement age has crept up to age 62, but it’s still a fair time away from age 66.²

So why do Americans think they will work longer than they actually do? When asked why they chose age 66 to retire, there are a few reasons that stand out:
 

1. People were healthy when they prepared their retirement plan, so 66 seemed reasonable.




2. They have not accumulated the funds necessary to live comfortably in retirement.




3. There are fewer pensions so there’s a greater need to stay in the workforce.




4. Full Social Security benefits don’t begin until age 66 for many retirement-aged people.




5. There’s a much more positive view now of working longer than in the past.² 

People also understand that, because Americans are living longer than in past decades, they face a real concern about whether their money will last.

But as pointed out in the Employee Benefit Research Institute (EBRI) survey³, a financial plan that includes working longer doesn’t guarantee you’ll actually keep your job into your mid- or late 60s. What we plan to do doesn’t always play out. Illness, inability to perform job duties, attending to personal situations (or any number of other reasons), cause retirees to vacate the workforce before the magical Social Security age when they planned to receive full benefits.

After looking at the facts, there’s a reasonable possibility that you might not get to choose when you retire. It’s prudent to have a Plan B and it’s something that should be factored into your overall retirement plan. Creativity, flexibility and an emergency fund are great tools to have in your arsenal to avoid feeling desperate.
 

Mountain America Credit Union can help guide you forward in your financial planning, no matter when retirement comes knocking on your door. Make an appointment today to ensure your plan includes a contingency strategy and emergency savings. Our financial advisors are trained to find ways to help you save more money for the expected, and unexpected, days of retirement.