Should I wait until I am 70 years old to retire?

I have just heard that people should forget about retiring until they are 70 years old. Does this only apply to a certain target audience? I am thinking about retiring when I am 60 years old (9 years from now). I have about $2,300,000 in investments split equally between a 401(K) and other investments. My wife and I have always lived well under our means.

Retirement, Investing, 401(k)
Answers
Sort By:
Most Helpful
5 weeks ago
100% of people found this answer helpful

I think this question points up the uselessness of applying the same formula to everyone of a certain age.  There are so many 51-year-olds in this country that have no appreciable savings and it is they who will have to work until 70 (or past).  If you have saved, you can retire comfortably.  (Is everyone else reading this?  Now, do it!)

I usually tell clients that they have enough to retire if, after subtracting all predictable retirement income (such as Social Security, corporate or government pensions, or net income from property you own) the annual amount you need to fund your lifestyle, including taxes, is 1/20 or less of your liquid invested assets. 

If you have $2.3 million now, and if you intend to let it compound untouched for the next 9 years, then if you average 5% over the next 9 years you will have about $3.6 million.  (More, if you add regularly to savings between now and then.)  Thus if your living needs after SS etc. are less than $15,000 per month you can afford to retire.  The only reason for you to work to age 70 is if you love doing what you do and could be happy being semi-retired.

By the way, everyone should also avoid "target date funds" for this reason.  You are not like everyone your age, so you should not all invest alike.  

4 weeks ago
5 weeks ago
5 weeks ago
5 weeks ago