Here’s Why Working One More Year is the Biggest Retirement Decision You’ll Ever Make

[@kevin7151]

I retired at 57, 8 years ago. My wife and I saved and invested early allowing me to exit the workforce when I did. She stayed home after our first was born and has not worked (for income) since (25+ years). Our house is paid off, kids college tuitions fully funded, have two late model cars fully paid off, travel extensively and do not forsake anything we need. We are not special and believe most people can do this with the appropriate level of planning and discipline. The key message I would communicate to others is don't delay retirement if you have the financial wherewithal to do so. Too often I have seen many people delay retirement and then experience health issues which constrain the very things they wanted to do post-retirement. Moreover, the most significant benefit of retirement for me is that I no longer have to deal with people I do not want to. That has proved to be the ultimate blessing.

[@MelloCello55]

My father worked at Caterpillar. He would sometimes seem down at dinner, and would eventually say that so-and-so had retired 3 months ago and dropped dead from a heart attack. My father had already had a heart attack kind of early (back when people smoked) so he retired the minute he could, at 62. My parents had many nice winters in Florida and I know he never regretted his decision. My parents were not wealthy at all but they lived within their means their whole lives.

[@briancoleman971]

Biggest factor many don’t mention is having time to prioritize your health. I semi retired so I have time to work out, cook proper meals, and take better care of myself. Figured that was a better investment

[@mph6563]

This Wednesday, someone I know retired from work. She put up a Facebook post about all the things she was looking forward to doing in the years ahead with her partner. That night, her partner had a major stroke, and passed away Friday morning. If it was in a movie, it would seem ridiculous, but terrible things like this happen to real people. Life is precious, fleeting, and uncertain for all of us.

[@umrmech84]

I'll never know why people act like they have to wait until retirement to begin traveling. My wife and I have about 4 years until we plan on retiring, but are planning some of our biggest trips during that time. It's not an "all or nothing" game.

[@nunuvyurbiz123]

At some point you are trading time you will never get back for money you will never spend. I'm out in about 60 days.

[@gregsalter]

I retired yesterday at 58. I had spent a lot of time over the last year deciding if I should do it this year or next year, even though what I worked out with my financial planner showed that it was OK to do it this year. Hopefully we didn't mess up! 😊

[@RootFP]

Good luck!

[@July.4.1776]

One more year is what my coworker said he never made it….

[@tc5673]

I'm in that "one more year" syndrome. All the calculators say over 95% success rate, but the FEAR is has me stopped in my tracks

[@timmyg000420]

Work 1 more year then the market crashes, then work 5 more years until the market recovers, then work one more year then market crashes then work one more year....

[@matthewmcguire5217]

I wish I would have worked one more year…said no one on their deathbed ever!

[@jldavid47]

Great video. At age 60 I decided to exit the rat race and while we would have more in our brokerage accounts if I hadn’t, we have enough and my physical and mental health are better 10 years later than they would have been if I had not. I enjoyed the work I was doing. It was the BS around it that I hated. I am truly the master of my time, which is the single biggest advantage of being retired. No regrets.

[@machaxor3039]

The best quote I heard …. “today is the healthiest you will be for the rest of your life”…..I retired at 55 and my wife and I now travel. All I see is the 20 something’s backpacking around the world, or older (60s) people who can barely walk to get on/off the tour busses.

[@PoodlesAnonymous]

I am making this decision right now. Early retirement offer expires tomorrow at 5pm. I am only 58 and not quite comfortable. Looking at 60. University professor. I am managing the down side risk of working longer by saying no to a lot more than I used to. I prioritize my health and don’t publish like I used to. Don’t worry….the state still gets a lot out of me. I am just no longer willing to work constantly like I did for years. I purchased the software two weeks ago and LOVE it. Really helped me get clarity on where I was with my thinking.

[@RootFP]

I’m glad to hear that!

[@KennDewh]

I'm 67 and retiring this month. I wrestled with this decision. This video confirms my decision to retire. If I work another year it's another year I miss my grandkids growing up. I already missed a lot of my kids growing up. I don't want to repeat that.

[@pglover19]

This video just reassured my wife decision to retire this year. Great timing. Just love these case studies James. Please continue them.

[@dlg5485]

This is such an important message. I was planning to retire at 67 just because, but a couple years ago I started trying to figure out the very soonest I could retire successfully. To my surprise, it turned out to be as soon as 60, especially if I retire to a less expensive location abroad, which I was already considering. When I really focused on creating a realistic retirement budget based on my actual plans, I realized I didn't need anywhere near the savings goal I previously set. Now I have a new goal that I expect reach at around 60. Understanding what you want to do in retirement and working backward to figure out what that lifestyle will cost is necessary to figure out how much you really need. Don't just chase an arbitrary number. Make an estimated budget based on a real plan, and use that to work out your savings goal.

[@stevenlong5817]

Why can’t they travel now while still working? They probably have at least 4 weeks vacation time each year from their employment and a $24k yearly budget that they spend now. Work one more year, travel as much as you can in that year, get a taste of the places you would like to visit, then retire. We travel a lot in our 4 weeks annually and both still work. Scotland, Italy, beach trips, cruises. This couple needs a “vacation planner,” (not a retirement planner) for the next year if they can’t figure it out. My $.02

[@pixseedustaerialimaging8191]

61 and done. Thats my plan. My new work will be totally focused on my adult children, my marriage, my siblings, my community, my church, my mind, my spirit, and my body. Whew! I’m going to be a busy boy.

[@deanrotering879]

I know a guy at work who is on his 5th one more year. He’s really slowing down but still there. I’m going to retire this year at 60 instead of 62 when I planned.

[@desiv1170]

There are financial reasons that working one more year would be a smart decision for me. There are life/happiness considerations that have made me decide not to work one more year. Getting closer to that happening, and instead of worrying about whether or not I will miss the extra money, I am more wondering why I ever thought the extra money would be worth it.

[@Jack51971]

Warren Buffett says "I can buy just about anything but time!"😊

[@RootFP]

True

[@BTinSF]

I retired at 47 with $300,000 saved and worked part time for another 12 years. I'm now 80 and have $2 million invested plus 2 homes. Having had a military career that sent me all over the world, I had and have little desire to travel. Big savings there and buying a second home kept life interesting. I'm sorry but I don't think life is sufficiently predictable to do these kinds of forecasts. I say play the game inning by inning.

[@chrisn6585]

April 30 I am 62 and done nobody changing my mind

[@elengstrom]

Listen to this. I had seen many of his and his colleagues videos and have used the planner tool I started that late the year before. Husband and I have been together 36 years, raised 3 kids with our blended family, run a business together. Early last year a freak cyst in his knee ended up causing full on sepsis, weeks of hospitalizations, rehab hospitals and multiple surgeries. We are so lucky and I’m grateful he has nearly fully recovered and with the specialized PT and some great health care team members, he’s stronger than ever. Our retirement travel plans are all still on hold and we will be fine, but we should have started our retirement a year or two earlier. The content of your videos and “courses” and much of the content of your colleagues related sites on health care, social security and Medicare, etc., helped guide me through the last year. I knew what changes to make and how to time them. I can’t thank you enough.

[@j.macmillan2293]

I retired but kept working. It reduces stress and it’s fun!

[@SusanMarie3]

Left hospital management at 58 - never felt so wonderful away from all the stress 🎉🎉🎉

[@carl13579]

Nobody wants to hear it, but if you were to replace "until age 90" with a probabilistic model that is reflective of actuarial tables, even their first plan would have a MUCH higher probability of success.

[@flicks28]

I used to work with Americans who were paid $2 to $10 million a year and they were still working into their mid to late 70s. It was impossible for me to fathom.

[@Sparkletron]

Excellent! So many "Monte Carlo method" retirement experts make the mistake of counting all retirement years as being equal in value. Yet clearly, for most, life at 60 offers more opportunity than life at 80. For most, advancing age brings a lower quality of life. For most, a lower payout during your go-go years has more value than a higher payout during your no-go years. And that's assuming you even reach the latter.

[@jillparks2403]

My FIL retired from his government job at 62 and immediately started working in corporate America - retired at 82…MIL passed away a few months after he retired - all she wanted to do was travel but waited and never got the opportunity - FIL has an incredible amount of money/retirement but what good is it?

[@ryankemp3602]

I watched my parents and their entire social circle retire. It was a very very small percentage that actually had the choice of when they retired. It’s really dangerous to put yourself in the situation where you need to work another year in your 50s and 60s.

[@Tony-dx3eo]

I truly hope that I'm not still "working" at age 67.

[@TheK9Shepherd]

You should look at including "Volunteer Delay Retirement Credits" for a retirement plan. Not many people know this. You can start taking your SS benefits at 62 to 67 let's say, suspend taking them and restart them at 70. You'll get that 24% increase (8%/yr for 3 years)

[@MrDave570]

I just retired at 67. High paying, high stress. I could have kept working to make more money I won't live long enough to spend. But it's crushing my Medicare premium and it delays my freedom. It's time to make my money work for me!

[@kevincross1240]

I worked one more year after FRA just to pay down debt. Sure glad I did because my retirement is better with less debt on my shoulders.

[@stephenrasp4485]

James, I wasn’t ready for your pivot. Glad you looked at quality of being together and enjoying your quality of the healthy time left! Thank you so much.

[@RootFP]

Thanks for watching!

[@F.G888]

Another great video James. I can't tell you how much you've helped me by watching these vids the last 6 months as I prepare for my upcoming retirement. Thank you.

[@raquelolegario6467]

I retired at 61.5 when I realized I had enough in savings. Even though I could have more if I worked to 65 or 67 enough is enough. Can’t take your money to the grave or beyond if you believe in that

[@RootFP]

Good perspective

[@rolandosouffrain7957]

Im going to work till i get my goal of $2.5 MILLY. Im on track to hit it at 60. I have my fingers crossed 🤞🏾 🎉🎉❤❤

[@frankrothiz4u]

Expenses really drop off if you just drop dead

[@MarkBush-en5cz]

One more year may be 5% to 100% of your remining lifespan. How much will you sell it for?

[@boscdny]

The people I know in their late 80s and 90s are usually happy just to be able to travel from their couch to the bathroom...

[@michaelhurd35]

I retired at 60 instead of 58 and l definitely regret working the extra two years.

[@bvoyelr]

200+k income, 6k core lifestyle expenses.... 1 million in the bank. HOW. I have a lower income, higher (albeit only slightly higher) expenses, and I'll be a millionaire before I'm 50. If I work til I'm 67, I'll have like 10 million in the bank, if not more. Goes to show you: you can't out-earn a lavish lifestyle. If you can curb those instincts in your 20's, you basically can't fail.

[@henrykuerer1596]

I really really enjoy your podcast. You are a remarkable individual with a strong understanding around savings and retirement. I wanted to comment on a podcast. I heard today, not this one. Something about Vanguard advisory services. I looked into that with them. The main huge problem is that they would only manage the accounts with them at Vanguard and not look at your total portfolio outside of Vanguard and in retirement accounts that would be utterly useless than not having all the information. I would love for you to do a podcast on the concept of rebalancing a portfolio within qualified accounts in an effort to avoid tax consequences of selling and rebalancing in nonqualified accounts. That is brokerage accounts. That’s a really important area. Thank you for all you do.

[@elizabethchildres6114]

One more year of soul sucking health harming work. Couldn't take it. Left at 64. I'm not living high on the hog but I am feeling more human.

[@davidadams-b7f]

Thank you! I have never heard a retirement planner address life balance as well as you do. I retired in September, 2024. I struggled with the decision and the doubt of "do I have enough?". The health of my husbands aging mother who lives overseas was a key factor. We prioritized spending time with her. We agreed to cut other expenses if needed to make that happen, We were able to make 4 trips and spend several weeks of quality time with his mother and siblings before she passed away last week. Life won't always wait a year while we build a financial cushion.

[@FIREhiker]

There are people retiring in their 40s with this portfolio. $1M house paid for, $1M+ invested, cash account. Control your spending and go for it! Take them on a field trip to a SNF or long term care facility ... it's eye opening. Good grief folks, pull the trigger on retirement. 🙄

[@susanalexander4683]

That didn't go as I thought but I totally agree with prioritizing health and well-being.

[@jeffsmithist]

I worked five more years, delayed SS until 70 and now I am wealthy and buy whatever …

[@johnsanford3596]

How the hell, with a paid home, are their expenses $6k per month, not counting medical?

[@Amberabove]

I think the bottom line for anyone in any stage of adult life, is that we may not be able to always control income, but we certainly have a great deal of control over spending. I was able to retire at age 55 which left a job open for a younger person. I’ve also advised that no matter where you work most companies offer a 401k option and some even match your contributions.

[@hejiranyc]

I am 55 and seriously considering retirement at the end of 2026 at age 57. I could theoretically retire today, but my current situation is kind of a dream job (for someone else) that I just can't justify quitting. And I'm not entirely convinced that I'll be able to do it at the end of 2026. I work at home. I am the boss and have a lot of autonomy. I am paid very, very well - in the 37% tax bracket as a single person. I just have agita thinking about walking away from this despite the fact that I want nothing more right now than to do nothing for a while and then travel, travel, travel. I know... first world problems.

[@ScottRiding-e1e]

James, just excellent, so nicely done. You put it all together. I have learned a lot from your videos. Thanks.

[@ronmexico5908]

Good information. The takeaway is to save more sooner. Don’t make that purchase that isn’t building wealth. Think long term

[@thomasmoshier3920]

Yeah, it’s easy for a 30 something financial advisor to tell you to work another year when you’re 67. Much harder to do when you’re the 67 yr old that has to grind out another 12 months. I had every intention to work until my FRA of 66 and 10 months. At 65 I had enough. You can play the one more year game until you die.

[@RootFP]

I don’t think you finished the video

[@BlackMan614]

My Schwab financial advisor keeps telling me to continue working. "We need your money. You don't."

[@RootFP]

😬

[@fluffymuffi1]

I worked til 69 without really noticing. I was then paid for an additional six months severance - so that made it 69 1/2 before I claimed for SS. No one had given me ANY information about social security or Medicare. Somehow I have landed on my feet. ...I think. 😂

[@QuietRide113]

Excellent case study. Could also rent out the house to create a revenue stream. Use part of the house rent to rent a place to live. Thank you!

[@MB-uy5kh]

My passion is travel. I started traveling when I graduated from college at age 22. To date, I have traveled to 97 countries and with the exception of Covid shut down, I have been able to add 2 to 6 countries to my list for the last 15 years. I am about to go on an East Asia trip of six weeks in April, visiting Hong Kong, Singapore, Vietnam, Cambodia, Thailand, Taiwan and Dubai. Then in the fall, I have a trip to Croatia and Montenegro. I learned from my in-laws who were waiting to travel when they “retired”, and unfortunately, six months into retirement my mother-in-law was diagnosed with Parkinson’s and macular degeneration and there went their travel plans. I am hoping I will have completed my goal to visit 152 out of the 195 of the recognized sovereign independent nations by the time I retire in two years.

[@sheneedsme]

I’m 70 and still working because my business is making me great money and I enjoy being productive. I’m also very healthy and take a lot of vacations. Just started taking social security and my wife gets an excellent pension as a retired school principal. Life is good. Just funded my 2 year granddaughters college education to make things a bit easier for her parents who make over $300k a year so don’t really need my money.

[@dalegg66]

6000 is their core budget? I struggle to come up with $3000 a month in expenses.

[@bassdojo]

Retiring in 2 more years, I'll be 57 my wife 52. We will be financially set. I've been planning for this the last 30 years.

[@captsorghum]

I retired at 65 thinking one more year wouldn't make much difference to my future lifestyle. It was fortunate that I did so, as it gave me enough time for Roth conversions and such before turning on Social Security. I guess some of that would have been avoidable with better planning.

[@AuAgGeo]

Refreshing to hear a financial planner that doesn't use fear tactics to keep everyone working so they can keep earning their percent with others money. Good on you. Knowledge is power. I have given different financial houses allotments of funding without them knowing the other investments. All so driven by greed. All just twinning what is essentially S&P500. Prioritize life at all costs. You only have 1.

[@melissastroud]

I retired 65, my benchmark was pensions & my widow ss bringing in what I was living off of last 5 years while working. I met that benchmark and still don't pull from TSP or ROTH or investments. Age 73 I will have to start doing that.

[@foxt1042]

I will retire at 67 (full Social Security). I may get a part time job for fun and to keep busy/active with interactions with coworkers, etc. if I'm not busy at home with tons of projects. The extra money could be used for upgrading travel plans too. I'll wait to get a part time job after trying on retirement for awhile first... not having to work changes the attitude too. There's a big difference between having to work and wanting to work/volunteer.

[@RuthEverhart]

I appreciate you. My husband and I have employed this same perspective.

[@donaldlee6760]

At 7:35 - I suspect/wonder if the co-workers that died just before their planned retirement was not due to tragically bad luck but because of a serious health decline that forced them into a choice they did not want, which was to announce their imminent retirement.

[@thundersnow93]

0:26: om goodness -- a no brainer! Retire yesterday already!! Downsize your home to pocket surplus equity, collect social security NOW, set yourself up for income from the $1.2M investments and the surplus equity after downsizing, and enjoy life to the fullest in the coming few healthy years left.

[@IdRatherBeDiving-vr5gk]

$6000 per month for core monthly expenses is wild. I'm getting ready to retire in a few years and my core monthly expenses -- utilities, prop tax, insurance, food, HOA dues, pool guy -- will be around $2000 a month. And I'll be living pretty well.

[@tscoff]

One thing that I figured out is the cost of housing makes a huge difference in everything. Even with a fully paid off home, downsizing to a much smaller home that costs less to maintain and insure will save thousands of dollars a year!

[@Travel_Explore_Grow]

Fantastic video! Health is my number one area to focus on. We can have all the money in the world, but if we can only watch TV all day what's the point of being alive. I lost two friends recently that never even got to enjoy retirement. Food for thought

[@ChatGPT1111]

I am 65 and my wife is 58 and we both work good but stressful full time management jobs. My problem is my wife expects me to work until her minimum retirement age of 62, so I will be 69.....if I'm lucky to still be here! My dad died at 66.

[@jeffDwyer1]

People who are able to retire early are lucky . I have 15 months till 65 and need to look at calling it quits, my only fear is running out of funds much later, thus keen on investing. What could be the safest possible ways to invest for cashflow, in order to afford lifestyle after retirement?

[@ralphweber2522]

Their house is paid for, and they still have $6,000/month in bills, not including healthcare and health insurance???

[@bwhite9993]

Bingo... One more year of not living your life fully for a few percentage points on monte carlo. Downsize the house and party like its 1999 😀. Great Video.

[@RootFP]

Thank you

[@broc2727]

I plan on retiring at 63 and hope I don't drop dead before 73.

[@Bg-xk1uw]

At 52 I realized ALL my job applications were being round filed. I disguised my age like crazy, every way I could. The job I had at 60 laid me off with a lot of others and I was one of the few not recalled to work. When I bluntly asked my old boss a woman 30 yrs my junior, why not? She couldn't look me in the eye when she said "Well HR had some health concerns about you". I'd never had a sick day.... After that i ran into age discrimination everywhere, carefully vailed but ubiquitous. I managed to struggle through until 66.5 at part time jobs or similar and gave up and retired. Work one more year? Hell no.

[@nedmerrill6228]

I’m working one more year, I like my job so it doesn’t make sense for me to retire and just sit around.

[@fialee8ca132]

Your SW should factor in spending flexibility of spending less when market conditions are worse and spend more when market conditions exceed expectations. People have the ability to toggle spending as needed. I agree with the question of how much is your life worth? Prob a lot more than one more year of work.

[@RunnerThin]

Health is important

[@toantruong7901]

They reach FRA and can get full benefits so why work for another year? Time is shortening and most importantly their health is their wealth.

[@WJJ3rd]

We were very fortunate to retire in our 50s. (We made good money but we both had stressful jobs in government) After retirement we traveled extensively, played pickleball and enjoyed friends and family. We were healthy and fit, but It's surprising how much energy you lose, and how many new ailments you get in your 60s. My wife went totally blind at 68 and our lifestyle changed drastically. The potential extra money is not worth it if you're stuck in a rocking chair or in an assisted living facility!

[@michaelcarr3945]

Great advice. I’m in Australia but I suspect your social values apply, great vid, thanks

[@EJJ-EvArms]

James, you rarely mention going part-time as an option. Why? This couple could get their*time* and life while maintaining it without sacrifice. Why is working so often presented as an all or nothing thing? Smart perspective otherwise, but part-time is a consistent miss in many of your videos.

[@RootFP]

Part time can be a great option when it’s available

[@batdude2196]

As far as I am concerned they already worked 4 more years. Where does it end?

[@DWilliam1]

Retiring in 2 months at 58…don’t want to be the one who dies on the job.

[@C5North]

Retired at 54. After almost being done with my first year my only regret is that I didn’t do it sooner.

[@ppw8716]

When you’re younger and healthy and with no health issues, eg late 50s or even in your early 60s you think there’s time. It’s the one more year syndrome. But, what happens when you or you and your spouse gets sick, heaven forbid a terminal diagnosis eg 6 months? What then? What’s the point of having a large amount when the end is just around the corner? It’s easy to think that the acquisition of more money will provide you with more in retirement. I get it.

[@Cpt_Adama]

What about if your not going to leave your paid off house to anyone, and getting a reverse mortgage to add to your retirement?

[@Flippy_808]

I’m looking to retire soon on an early out offer… if I don’t go now, I won’t be able to retire with my benefits for another 5.5 years. Such a difficult decision, as I’m only in my early 50s… just can’t stand the bs at work anymore 😅 If I stay, I’ll have an extra 190k contributed into my 401… decisions, decisions…

[@hacerclic1020]

This, and many similar discussions, assume that work is not a "thing that actually matters". Work can be a rewarding part of life, both financially and personally. If you have a job you enjoy, that pays well, and is low-stress, why not keep working? Of course, if you hate your job, by all means retire ASAP. But we're not all like that.

[@legalavocado3447]

Making similar decisions now. Husband’s job has great salary and benefits, and his pension goes up one percent of yearly salary for every year worked. Plan is for him to retire in a year and a half, at SS full retirement age of 67. I’m feeling so insecure about the idea of suddenly having a fixed income and thinking about how much more we could save if he worked until the end of 2026-closer to age 68. Biggest part of this is that I am interested in possibly moving to where our daughter and her family live, which is halfway across the country and would overall be a higher cost of living. I’ve been saving $ like crazy for a few years now, because we paid off our mortgage. One more year of this great cash flow? One less year of my husband’s stressful job??

[@singplayguitar]

At age 67, you don't know when your last day is today or tomorrow or 2 month later. I would not risk a damn second.

[@dianediliberto1876]

Thank you.

[@ItsEverythingElse]

Both age 67, $2 million net worth, worried about longevity, and want to spend $8000 month/$6000 core? Is this a joke?? Yes, retire now, you will be fine. And I just saved you thousands in advisor fees. Good grief.

[@JenHudock]

I retired last year at age 56 after 32 years ina high stress job . I was lucky to have earned a pension.. I do wish I knew about the 35 year rule for social security though.. I might have stayed a few more years

[@elrey_collection]

nice video....