Why Retiring at 65 May Be a Mistake
When most people think about retirement, the age of 65 often seems like the finish line. It’s the age when Medicare kicks in and Social Security benefits are fully accessible for many. But what if I told you that retiring at 65 might be a mistake? I want to share with you some insights that might completely change how you think about your golden years.
The Hidden Risks of Retiring at 65
Retiring at 65 might seem like the ideal plan, but there are some hidden risks that many people overlook. The primary risk isn’t financial—it’s underestimating life expectancy and, more importantly, healthy life expectancy.
Now, this is important. In the U.S., the average healthy life expectancy is just 66.1 years. That’s the age at which the average person begins to experience significant health issues that may limit their ability to travel, golf, or even just get around comfortably. In contrast, places like Japan (74 years) and Italy (72 years) have much higher healthy life expectancies. This gap is important because it means that many Americans might only get one or two good years of retirement before health problems set in.
Scott and Brooke’s financial plan showed a high probability of financial success if they retired at 65, but the real risk was focusing too much on financial projections and not enough on the quality of life during retirement. What good is financial stability if you’re not physically able to enjoy it?
Prioritizing Healthy Life Expectancy
Think about this: healthy life expectancy is the number of years you can expect to live in good health—not just alive, but really living. This is what allows you to travel, enjoy hobbies, and spend time with family without physical limitations.
Here’s the reality: the U.S. ranks poorly compared to other developed countries in terms of healthy life expectancy. But the good news? It’s largely within your control. Exercise, diet, and lifestyle choices can significantly extend the number of years you spend in good health.
I’m reminded of the Confucius quote:
“A healthy person has a thousand wishes, but a sick person has only one.”
It really drives home the point: health is everything when it comes to enjoying your retirement.
The Role of Exercise in Retirement Planning
If you want to be part of the group that truly enjoys retirement, exercise isn’t optional—it’s essential. Regular exercise benefits you both now and in the future by improving physical and mental health, extending your life span, and, most importantly, your health span.
Here’s a sobering statistic: 77% of Americans don’t exercise regularly. That’s a massive missed opportunity. Exercise isn’t just about adding years to your life; it’s about adding quality to those years. When you make exercise a priority, you’re investing in your ability to enjoy travel, pursue hobbies, and stay independent in retirement.
If you want to retire well, it starts with being part of that 23% who prioritize health.
Practicing Retirement Before You Actually Retire
One of the smartest strategies I’ve seen is practicing retirement before you actually take the plunge. Scott and Brooke’s experience showed how important this is. They started traveling more, playing sports like pickleball, and volunteering well before they officially retired.
Why? Because trying out your retirement lifestyle early helps you understand what you enjoy, what you don’t, and where you want to spend your time. It’s like taking a test drive for your golden years. When you do this, you avoid that feeling of uncertainty or loss of direction that so many new retirees experience.
The Power of a Good Retirement Plan
Many people push retirement back to 65 or even later simply because they haven’t planned properly. They work through some of their healthiest years, postponing travel, adventure, and family time until it’s too late.
When Scott and Brooke ran their financial projections, they realized they could retire at 63 instead of 65. They could still maintain a high probability of financial success while gaining two extra years of good health to enjoy their passions. All it took was proper planning and running the numbers.
If you haven’t done this yet, I can’t recommend it enough. A well-structured retirement plan can help you balance enjoying life now while still securing your future.
Key Takeaways for Smarter Retirement Planning
If there’s one thing to remember, it’s this:
Don’t wait for the “perfect time” to enjoy your life.
Here are the key points to consider:
- Prioritize Health Now – Exercise regularly to improve both your life span and health span.
- Practice Retirement Activities Early – Figure out what you enjoy now, so you can hit the ground running when you retire.
- Create a Realistic Retirement Plan – Run projections, explore different scenarios, and find the optimal age for your personal situation.
- Balance Living for Today and Planning for Tomorrow – Don’t sacrifice your healthiest years just to hit a financial target.
When you take these steps, you might find that retiring at 65 isn’t the dream you once thought it was. Maybe it’s 63, maybe it’s 62, or maybe it’s even 60. The important thing is that you enjoy those years while you still have the health and energy to do so.
You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.
Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.
