May 6, 2024
Question:
I’d like to work until I am 65, when I can qualify for Medicare. What if something happens and I need to stop work earlier?
Answer:
That’s a very timely question.
A recently released survey from the Employment Benefits Research Institute (EBRI) reported that people often stop working 3 years earlier than they planned. Respondents said that they wanted to retire at 65, but actually retire 3 years earlier.
Why is there a relatively large gap between expectations and reality? The Wall Street Journal reporting on the research said that health issues, layoffs, ageism and caring for family members are among the contributing factors.
In terms of what you can do to prepare, the answer is planning, and your first assumption should be that you will have to stop working sooner than you would like.
Planning is twofold:
First, is the financial part which ideally should start years before. This will give you a “long runway” and ideally some peace of mind.
The second planning component is what you would like to do once your traditional working years end. An encore career, part time work, travel, or a combination?
This planning should start years before you want to retire, so you are prepared for any eventuality.
Do your friends ask you financial questions?
Pass those questions on to us at AskRPG@rootedpg.com and we will feature them in our future newsletters.