Is Retirement a Death Trap?
Retiring young is a lot of people’s dream. It is the goal of the financial independence, retire early (FIRE) movement. Be careful what you wish for, though. An early retirement does not ensure you more years of good health or more years of financial stability than you would have if you had remained in the workforce longer. It is not even a guarantee that you will be around to experience more years as a retiree, in prosperity or financial hardship and in good health or illness. Neal Shah, a researcher on elderly people’s health, recently posted a video on Tik Tok, citing studies that correlate retirement before age 65 with living less than a decade after retirement. Wouldn’t one expect the opposite? If the average life expectancy is 79 years, shouldn’t you get more years of retirement if you retire at age 64 than at age 70? Shah, who has worked with the National Institutes of Health and with Johns Hopkins, listed several reasons for this, but there might be additional reasons. Taking a realistic view of your health prognosis should be a factor in your retirement decisions, but not the only factor. For help deciding when to retire and how best to provide for your needs with the financial resources you have, contact a Washington, D.C. estate planning lawyer.
What’s With Young Retirees Dying Soon After They Retire?
According to the studies cited in Shah’s video, you have a better chance of living to age 75 if you retire at age 65 than you do of living to age 65 if you retire at age 55. This grim statistic takes some of the fun out of daydreaming about an early retirement. There is an especially sharp increase in mortality, especially for men, at age 62, the age at which people first become eligible to draw Social Security retirement benefits. Shah attributes this to health protective factors that are freely available to everyone in the workforce, but which retirees must actively seek out. These are structure, social connection, and mental load, defined as appropriately challenging cognitive tasks.
There might be another reason, too. Health is often a main factor that determines when people retire. Most people retire when and because they are no longer healthy enough to work, not because they are sure that they have as much money as they will ever need. People who retire at 62 may have been dragging themselves to work despite failing health, because otherwise they would have no income. Once they become eligible for Social Security, they retire and collapse at the finish line.
How to Land on Your Feet When You Retire, Regardless of Your Age
Be honest with yourself about your health and how much retirement savings, if any, you have. Buy long-term care insurance or hybrid life insurance, depending on what you can afford. Then start strategizing about ways to stay active and socially connected after you retire.
Contact Tobin O’Connor Concino P.C. About Realistic Retirement Goals
A Washington, D.C. real estate attorney can help you make healthy decisions about retirement. Contact Tobin O’Connor Concino P.C. in Washington, D.C. or call 202-362-5900.
Source:
msn.com/en-us/money/retirement/why-retirement-could-be-the-most-dangerous-day-of-your-life/ar-AA26qmTP?ocid=msedgntp&pc=ACTS&cvid=6a3dc7af2f2b4cf1a0c1134fa1696261&ei=32
