LIFE MATH: RETIREMENT Retire Early, Work Longer, or Wait? The Cost of Every Retirement Decision
Retirement planning is about more than deciding what age you want to stop working. It is about understanding how your income, savings, investments, pension, expenses, health and family responsibilities will affect the life you can afford after employment ends. Retirement may sound simple until you start doing the mathematics. Should You Retire Early or Work Longer? There is no single retirement age that is financially right for everyone. The better choice depends on your income, savings, investments, pension benefits, expenses, debt, health, family responsibilities and expected retirement needs. Retiring earlier may provide more time outside employment, while working longer may provide additional income, savings and investment growth. The right decision is therefore a comparison of what each option gives you and what it costs. You choose a retirement age, perhaps 55, 60 or 65. You may even tell yourself, “I will work as long as I am healthy enough to work.” Yet r...