If your heart is set on retiring early and traveling the world, fill your diffuser with some calming lavender oil and take a seat, because bad news is coming: It turns out 70 is the new 60 when it comes to ditching your job for good.
Instead of brushing career-related stress to the side and trucking through each day only to be completely exhausted by the time you get home, now’s your chance to put burnout in its place—especially if you’re going to work as long as renowned personal finance expert Suze Orman recommends. According to Orman, the new normal for retirement age is much older than it used to be—but there is some good news baked into the updated number.
In a piece for Money, she wrote that 70 is the new retirement age—”not a month or year before”—because people are living so much longer. And, you need enough money to support yourself when you’re well into your nineties.
“Healthy people in their sixties today have about a 50 percent chance of living into their nineties. Can you honestly tell me you’re 100 percent sure you will not run out of money if you start spending down your retirement funds in your sixties and end up living into your nineties?” —Suze Orman
While Orman contends most healthy retirement plans include enough savings for 15 years or so, it’s likely that 15 years is not enough coverage to account for increased lifespan of folks in good health.
“Healthy people in their sixties today have about a 50 percent chance of living into their nineties,”Orman wrote. “Can you honestly tell me you’re 100 percent sure you will not run out of money if you start spending down your retirement funds in your sixties and end up living into your nineties?”
All things considered, living a longer, healthier life sounds pretty awesome—even if you do have to work longer than you’d like to in order to pay your bills. But hey—if spending more time making money in your sixties can support your Bingo-night habit (or, who knows, maybe you’ll still be clipping in at SoulCycle?) in your nineties, then so be it.