Amy Lindgren

Well, that was excruciating.

You don’t have to be political to appreciate the difficulty of the choice President Joe Biden just made. Not to over-simplify, but at its core, leaving the presidential campaign was a decision about retirement.

It’s a question faced by millions of American workers each year, as we finally come to the tail end of the baby boom generation. According to a frequently quoted report from the Alliance for Lifetime Income (April 2024), we’ll see 4.1 million Americans reach 65, the traditional age of retirement, by the end of this year. Between 2024 and 2030, a record 30.4 million will achieve this milestone.

Will they all retire? Many already have, while perhaps as many as 20% will work to 70 or 74. This makes sense: Despite its symbolic meaning, we’ve known for years that 65 is no longer the default age for leaving the workforce.

People retire at their own pace and for their own reasons. Many make the choice unwillingly, due to poor health or difficulty finding suitable work. Others choose to stop working when their assets reach a certain level. And still others opt for a semi-retired lifestyle, working part-time while drawing from Social Security or retirement funds.

For those continuing to work, the decision may be financial, but for many it reflects a continuing interest in the work itself, or a need to interact with others.

Do some people hang on too long to their work lives? Undoubtedly. Conversely, some find they have retired too soon, and eventually “unretire” or start a new venture to replace what they feel is missing.

If you’re in your 50s or 60s but not yet retired, the decision is likely gaining prominence in your thinking. You already know to review your finances and talk with a planner to help calculate how much you’ll need. Here are some other steps to add to your process.

Ask yourself: What are you retiring from?

It’s important to distinguish between retiring from a job and retiring from working altogether. In the first case, you may be ready for something new or longing for fewer responsibilities, while the second option means you would be exiting the work world completely.

This distinction will impact everything from your timing to how you describe your decision to others. For example, if you want to stay in the work force, it’s strategic to call your exit a transition rather than a retirement, even if that’s what your employer is calling it.

Learn the rules

You probably already know that your age at retirement impacts your Social Security benefits, but what about withdrawals from your retirement funds, or rules concerning your pension, if you have one?

You’ll also need to confirm that you and your family will have health insurance post-retirement. If you’re planning to rely on Medicare, understanding what’s covered and when it starts will be important.

Another consideration

Also, your workplace may have standards defining under which conditions you can return in the future, should you choose to. Likewise, if you’re drawing a union pension, you may find yet another set of rules describing what work you can do once you’ve retired.

Even if your potential retirement is years away, it’s worth doing some of this research now. Having a general sense of the rules will help with your planning in the meantime.

Picture the outcome

When you imagine yourself post-retirement, what are the specifics? Having a vision of the next stage can be critical to both the decision itself and how you implement it. For example, someone who is planning self-employment might arrange for a 4-day workweek in the year before retiring, to allow time to develop the business. Likewise, a worker who plans to contract their services in their current field would benefit from internal and external networking before they leave their company.

What if your retirement vision includes relocating to another state? One idea that has worked for others: If your target date is a ways away, and if your company happens to have work in that state, perhaps you could transfer now, and enjoy your company’s support while you get re-established in your (pre-) retirement home.

Consider your current housing

Speaking of homes — if you’re expecting to change homes during retirement, consider front-loading that activity. Whether you’d be renting or owning your next place, this kind of financial transaction is usually easier when you can demonstrate income. The same goes for other large purchases, such as a car or camper.

Don’t get overwhelmed

It’s a lot to consider, but at some point the decision to retire might not be optional. Building plans early on can relieve stress, while also providing flexibility to make changes if needed.

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Amy Lindgren owns a career consulting firm in St. Paul. She can be reached at alindgren@prototypecareerservice.com.