For as long as we can remember, 65 has been the age that most people are expected to retire. That’s what we were taught at an early age and it’s the number that has guided planning for some time. But is that age a thing of the past? With a that number increasing around the world, should you go ahead and expect to retire at a later date?
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The Combination and Key Points:
We recently came across a CNBC article that caught our attention. You can read it here, but it talks about the trend around the world of countries raising the retirement age.
There’s been a lot of pushback in France and other nations from citizens that don’t agree with the changes, and it got us thinking quite a bit about how we’ll be impacted in Ohio and the rest of the US. For the longest time, 65 was the accepted age that we were all going to retire. Now the official age in our country is 66, but will it go even higher?
[3:27] – Some background on what the article is about.
On this episode of Unlocking Your Financial Future, we’ll look at that question and discuss whether we’re headed for a later retirement. The most important thing Ben thought of when reading this was the question of health insurance. For people that want to keep that retirement age at 65, is there a plan in place for insurance? It can be a major burden on your retirement accounts if you haven’t prepared for the expensive costs.
[3:58] – Ben’s initial reaction to the article and the one thing he thought they missed.
[5:06] – A great example of this is COBRA. That used to be an outrageous option but not anymore.
Beyond that, though, we are seeing a similar trend in Ohio. About half of all people plan to work beyond the retirement age regardless. Our clients either enjoy working or say they are worried about transitioning and no longer having a paycheck. Either way, we’ll help develop a plan for whatever your needs and goals are.
[6:30] – Is Ben seeing a similar trend in retirement age with people in Ohio?
[11:00] – Where does retirement age fit into the conversation with our clients?
But it might not be too long until we’ll all have to shift that retirement age. With more and more people taking Social Security while also living longer, the government will have to make adjustments to keep benefits on track. So we’re having these conversations with clients and already creating strategies that accommodate those changes.
[7:38] – Does Ben think that age will officially move back in the future?
[9:47] – The retirement ages by country vary quite a bit.
Take a few minutes to read the article and think about how a year or two might impact your planning process. If you need to help determining if your retirement is on track, we’d love to sit down and hear your story. In the meantime, keep an eye on this trend and prepare accordingly.
Thanks for listening to another episode of Unlocking Your Financial Future. We’ll talk to you again next week!