SAN FRANCISCO, CA – According to a recent survey conducted by the Transamerica Center for Retirement Studies, the median age at which retirees left the workforce was 62, with 58% retiring before the age of 65. In contrast, the median age at which those who are still working expect to retire is 67. The survey of over 4,500 Americans aged 50 and older also revealed that nearly one in five do not plan to retire at all.
The survey found that over half of retirees (56%) retired sooner than they had planned, with 17% doing so because they were financially able. Additionally, the survey indicated that just 7% retired later than they had planned.
To retire earlier than planned due to financial freedom, there are steps individuals can take to improve their financial situation. One approach is to save more and spend less, which can have a significant impact on retirement planning.
Maximizing tax-deferred retirement contributions, such as contributing to a 401k or IRA, is a critical first step. In addition, increasing contributions with each raise can help individuals save more for retirement. Once the maximum contribution amount has been reached, saving and investing in non-retirement accounts can further enhance financial security in retirement.
Cutting back on non-essential purchases, reducing monthly bills, and paying off high-interest credit card debt can also improve one’s financial health for retirement. Furthermore, downsizing to a smaller home and living within retirement means early on can help individuals plan for a comfortable retirement.
It is essential for individuals to accurately determine their retirement expenses and make adjustments to their savings plan accordingly. By planning ahead and making strategic financial decisions, individuals can work towards retiring earlier than planned and achieving financial security in retirement.