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Pros and Cons of Retiring at Different Ages

Posted August 30, 2022

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Do you know the story of Goldilocks and the Three Bears? Goldilocks went along her way looking for a bowl of porridge that wasn’t too hot and cold, a chair that wasn’t too big or too small, and a bed that wasn’t too hard but wasn’t too soft. She wanted everything to be ”just right.”

When thinking of when to retire, you might be acting a little like Goldilocks. You don’t want to be too old, and you don’t want to be too young— you want the timing to be just right.

At Thayer Financial, we are excited to work with clients looking to retire early and those retiring on a more traditional timetable. Because we’ve worked with both and know what is required to retire on either end of the spectrum comfortably and securely, we can help you create a retirement plan that fits your unique situation.

We understand there is no one-size-fits-all method for retirement, which is why part of our retirement planning process includes planning a strategy built around your specific values and goals to put you on the right path.

If you’re still weighing the pros and cons of retiring early versus retiring later in life, here are a few things to consider to help you find what is “just right.”

The Pros and Cons of Retiring Early (Before Age 65)

It sounds dreamy, doesn’t it—retiring early? Hollywood will have you thinking this means you’ll be kicking your feet up, living on a beach, and living without a care.

Unfortunately, Hollywood paints a deceiving picture when it comes to early retirement. Yes, there are pros to this, such as more time with your friends and family, more time to travel and pursue your hobbies, and it may even open the opportunity for you to pursue a new business venture or discover a new passion.

However, it’s essential to know that life’s not all spent on a beach or a golf course when you retire early. A few things to consider will be the added strain on your savings, the repercussions of the increased cost of living with fewer Social Security benefits, and potentially the sheer boredom you swear will never come.

Remember that although you can start collecting Social Security benefits at age 62, you won’t get the full package, and your spouse’s spousal benefit may also be reduced.

If you’re considering if early retirement is proper for you, there are questions you will need to consider, equations you will need to figure out (such as the 25x rule), and conversations you will need to have.

The Pros and Cons of Normal Retirement (Between Ages 65-70)

You’ve decided not to retire early, but you don’t think you want to retire late in life either, so you wait until you can receive full Social Security benefits and have a healthy-sized savings account for rainy days.

When you wait until age 65 to retire, you’ll also be eligible for Medicare and will be able to reap the full benefit of this health insurance strategy that you’ve been paying into your whole life.

Not only this, but you will still be able to enjoy your work-free years traveling and spending time with friends and family in the safety of a comfortable financial situation.

The Pros and Cons of Late Retirement (After Age 70)

Some people choose not to retire until after age 70 for various reasons, whether the need to build up their savings or a love for the job they do. Whatever the reason, there are several benefits to retiring later in life.

When you retire after age 70, you will receive the highest possible Social Security payout (assuming you haven’t filed for it yet). If you were born between 1943 and 1954, your benefits increase by 8% until age 70, so your Social Security benefit will have increased by 32% over your full-retirement age benefit amount. If you wore born in 1960 or later, your Social Security benefit will have increased by 24% (Source: Investopedia).

Now, after years of hard work, you will have the funds and the security to go out and do the things you love, travel to places you’ve always wanted to go, and spend time with those you cherish.

Of course, there are drawbacks such as not having as many years to do those things you’ve always dreamt of, surprising health concerns increasing as you get older, and ultimately the unknown of what tomorrow will bring.

Finding What’s Just Right For You

Whether you want to retire early, traditionally, or later in life, the Thayer Financial team is here to help you plan and prepare for the future. Our ongoing retirement program includes wealth management and comprehensive planning strategies, assisting with business transitions, tax planning, estate planning, and much more.

If you’re ready to start planning, set up an appointment with the team at Thayer Financial, and we’ll help you find what is “just right” for your retirement plan.


Thayer Financial, L.L.C. (“Thayer Financial”) is a registered investment adviser offering advisory services in the States of North Carolina, Tennessee, Texas and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. This website’s presence on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Thayer Financial in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or according to an applicable state exemption.

All written content on this site is for information purposes only. Opinions expressed herein are solely those of Thayer Financial, L.L.C., unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to other parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.


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