Income, Not Age, Should Determine Your Retirement Date
There is no magic age when you should or can retire, so don't start counting down the years (or days). Instead, you need to dig a little deeper to know if you’re really ready.


If I could pass on just one key rule for people pondering their retirement date, it would be this:
Don’t think so much about your age. Think, instead, about your income.
Income is what helps give you your independence in retirement. If you’re confident you have enough money coming in to cover the lifestyle you want for as long you live, you have the option to quit your job any time you like. If you aren’t sure, you can’t.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Focusing on the wrong things
You can’t just stop working at 60, 65 or even 70 without a retirement income plan to pay your bills.
Seems simple enough. Still, very few of the people who come to our office looking for help have a budget prepared or a retirement income plan in place. They’ve spent years focused on growing and saving their money, and they haven’t yet flipped their mindset to how they’ll manage that money when they no longer have a paycheck.
So they choose an age — 62, 65, 66, 70 — because those are milestone years for Social Security and Medicare, and they’re the ages when most people retire.
Look beyond your savings
Now, I’m not suggesting that instead of saying, “I’m retiring at 65,” you should say, “I’m retiring at $1 million.” Choosing a dollar amount without a retirement income plan is almost as random as choosing a retirement age.
You’re going to have to work a little harder than that.
With the help of a wealth manager, you should begin looking at your current fixed-income sources — Social Security, a defined-benefit pension (if you and/or your spouse have one) or an annuity — and how you can help maximize those payments with the proper timing and claiming strategies.
Get budgeting
You also should put together an approximate but realistic retirement budget. Don’t assume you’ll spend less in retirement than you do now — many people actually spend more in the first few years, when every day feels as if you’re on vacation.
Major expense categories include your mortgage and car payments (if you’ll still have those, or if you expect you might have them in the future), food, transportation and health care. And don’t forget the fun stuff: travel, gifts for the grandkids, golf and other hobbies. Keep in mind, too, any services you might need as you age — from yardwork to home repairs to nursing care.
Once you know your fixed income streams and your budget needs, you can determine whether there is a gap. If you have more than enough money to cover your expenses, you may be able to retire earlier than expected. If not, you’ll have to figure out how you’ll draw from your retirement nest egg to fund that gap. Your financial adviser can help you build strategies that cover asset allocation, inflation and tax implications. And he or she can help you update your plan as time passes.
Stay flexible
Ultimately, no income plan, no matter how comprehensive, can predict all the twists you might encounter during a long retirement. But if you start with a solid plan and remain flexible about refining it as you go, you’ll increase the odds that your financial future will be secure.
And the only time you’ll have to mention your age is when you ask for the senior discount.
Kim Franke-Folstad contributed to this article.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Curt D. Knotick is a financial adviser, insurance professional and managing partner at Accurate Solutions Group. He hosts the radio program "Your Retirement Blueprint" with Curt Knotick.
-
A Meteorite May Have Hit a Home in Georgia. Would Insurance Cover the Damage?
In a rare event, a meteorite may have crashed through the roof of a Georgia homeowner. Here’s what home insurance would cover.
-
My Car Was Stolen — Here’s What I Did and How You Can Protect Yourself
Don’t wait until it happens to you. Learn how to prepare for auto theft, protect your vehicle and respond quickly if your car is stolen.
-
Why Smart Retirees Are Ditching Traditional Financial Plans
Financial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around You
While thinking about succession planning might feel like anticipating a landslide (here's to you, Fleetwood Mac), there are strategies you can implement to manage the uncertainty and the transition.
-
These Are the Key Tariff Issues to Watch in Coming Months
While they're not dominating headlines right now, tariffs are not over. Some key dates are coming up fast that could upend markets all over again.
-
Technology Unleashes the Power of Year-Round Tax-Loss Harvesting
Tech advancements have made it possible to continuously monitor and rebalance portfolios, allowing for harvesting losses throughout the year rather than just once a year.
-
The Fiduciary Firewall: An Expert's Five-Step Guide to Honest Financial Planning
Armed with education and awareness, you can avoid unethical people in the financial industry by seeking fee-only fiduciaries and sharing your knowledge with others.
-
How Private Capital Could Be the Key to Rebuilding America
Private capital investment in infrastructure could be a more efficient and effective alternative to government funding, potentially stimulating the economy during uncertain times, creating jobs and delivering projects on time and within budget.
-
Real Estate Bridge Funds: An Expert Guide to Investing in a Volatile Market
Investors looking for passive income are buying into these funds, which offer capital to borrowers for short-term financing.
-
Bill Bought a Fridge, and Then His Nightmare Began
A Lowe's customer reached out to me after he encountered the retailer's 48-hour return window for major appliances when his brand-new fridge turned out to be defective.