Personal Finance

I Used to Dream of Retiring at 50, but These 8 Factors Have Me Now Targeting 65

Marc Guberti

Published: January 31, 2025 7:45 am

Many years of financial planning and saving can help you retire sooner. While it’s possible for some people to retire at 50, it makes more sense for most people to aim for retirement by 65 or later. These are some of the reasons why 65 makes more sense than 50.

Rising Costs

It’s no secret that things are getting more expensive. While costs are higher now, they will continue to creep higher each year due to inflation. Those higher costs will further stretch a retirement portfolio.

It’s Easier to Earn Now

Some people retire early but then find that they have to return to work. Rising costs and running out of money are common factors, but some people also want to re-enter the workforce to be a part of a community. In any event, it’s easier to stay where you are and earn extra money than it is to re-enter the workforce after a 5-10-year hiatus.

Work Offers a Sense of Purpose

You can get a lot of joy out of doing high-quality work. After the initial honeymoon phase, many retirees feel lost about what they’re supposed to do with all of their extra time. Staring at a TV or smartphone for most of the day doesn’t sound as fulfilling as work.

Providing Generational Wealth

Working until you are 65 instead of 50 gives you additional years to contribute to your portfolio and accumulate morewealth. Those extra years can make it easier to pass on generational wealth to your children. 

No Desire to Downsize

It’s possible to retire earlier if you reduce your expenses. However, doing that can require a downsize, such as moving to a LCOL area. While that’s suitable for some people, others don’t want to leave their communities. Working a few extra years can give them the financial means to stay in their current neighborhoods when they retire.

Health Insurance

An employer can cover your health insurance and save you from a big expense. Working until 65 ensures that you leave the workforce when you are eligible for Medicare. 

Ability to Donate to Charities

As people get older, they often think about the type of impact they want to have on their family, friends, community, and the world. Working an extra 15 years will increase your net worth and will give you the flexibility to donate to causes that align with your beliefs.

Increase Social Security Benefits

Working longer can result in years with higher income that boost your Social Security benefits. You’ll also be less inclined to start receiving your Social Security benefits early, which will reduce your payouts. Waiting until you are 65-70 to receive Social Security instead of taking it out when you are first eligible will increase your cash flow.