Hi Jan,
Most retirement plans are built around a date. You pick an age, run the numbers, and work toward it. But that date isn't always yours to set. A restructuring, a family member who needs you, or a change in your own health can end your working years sooner than you expected.
This week, we look at what happens to a plan when retirement arrives early, and why a few years can matter more than it seems. Stopping work at 62 instead of 65 means losing three years of savings at the same time your portfolio starts covering your spending. In our example, that gap adds up to roughly $410,000 by age 65.
You don't need to prepare for every possible retirement date. What helps most is knowing where your plan has room to bend: liquid reserves, spending you can adjust, part-time income, and the timing of Social Security. We walk through each of those levers, and how stress testing your plan can show you where it's sensitive before you need the answer.
| | | | You May Not Get to Choose When You Retire You may have spent years planning to retire at a specific age, only to discover that the timing is not entirely yours to control. A company restructuring, a sale, a family member who suddenly needs your support, or a change in your own health can bring your working years to an end sooner than expected. The job you assumed would carry you to your planned retirement date may no longer be there, and the financial plan built around that timeline may need to change with it.
By Retirement Researcher | | | | Retiring Before 65 and the Healthcare Gap People Underestimate For many successful professionals, retirement becomes a choice before age 65. After decades of saving and building financial flexibility, they may have more freedom to decide when they are ready to leave work and move on to something different. That freedom can come with a few complications, and health insurance is one of the easiest to underestimate. Employer coverage tends to fade into the background while someone is working because the plan is already in place, the employer is paying part of the cost, and most of the decision-making happens during annual enrollment. Leaving work can change that almost overnight.
By McLean Asset Management
| | | | Is the 4% Rule Still Relevant? What the Retirement Math Says
Alex and I work through a full slate of listener questions, from whether the 4% rule still holds up and how to think about investing in the era of AI, to the tax traps of working through your sixties, backdoor and in-plan Roth strategies, and the pros and cons of qualified longevity annuity contracts. We also take on a listener's question about funding a retirement that could begin unexpectedly in their late forties, and how safe annuities are if multiple insurers fail at once.
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