Jan 25, 2026
Working past the age of 59 could be either a gift or a trap.
On one hand, a longer career means more savings and investments and a potentially fatter Social Security check. On the other hand, it means a shorter, less enjoyable retirement and limited time with loved ones.
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There is no universal formula for balancing work, money, and time.
The decision to retire early depends entirely on individual circumstances. Before choosing whether to keep working or step away, three financial numbers deserve close attention.
1. Health-adjusted life expectancy
Life expectancy is a crucial number for any financial plan. No one can predict precisely how long you will live, but an educated guess could help you plan your retirement savings and recurring withdrawals with confidence.
And fortunately, the Social Security Administration offers an Actuarial Life Table based on government data to help you make that educated guess (1). At age 59, for instance, the latest data — though taken during the 2022 COVID-19 period — suggests you may have roughly 21.83 years left as a male and 24.95 years remaining as a female.
However, not all years are equal. Your early-retirement years are likely to be the healthiest and most active. As your body naturally ages, you’ll spend more time indoors and, perhaps, more time at a doctor’s clinic. This has major implications for your budget and medical expenses.
This is why it’s important to consider your health-adjusted life expectancy. According to the World Health Organization, the average U.S. adult can expect only 63.9 years of “full health” for men and 65.1 years for women (2). That means at age 59 you only have a handful of active, healthy years left. Whether you want to spend these precious few years in an office cubicle or on vacation with your family is, perhaps, your most important decision at this stage.
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2. Realistic magic number
If you’re working past the age of 59, chances are you’re probably doing so to get closer to your so-called magic number. On average, most Americans say they need $1,058,547 to retire comfortably, according to Empower (3). Unfortunately, most Gen X and Baby Boomer savers expect to save only one-fourth of that magic number.
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Fear and anxiety about retiring with a sparse nest egg and running out of money could be keeping you at work longer than you like. But if you take the time to create a robust budget or consider major lifestyle changes (such as downsizing) you may find that your magic number is closer than you expect.
If you’re willing to consider a tighter retirement budget or some casual gig work to make ends meet, you could quit your full-time career earlier than you anticipated.
A 2024 survey by the Employee Benefit Research Institute (EBRI) shows that retirement costs are often lower than expected (4). One-third (33%) of retirees say they need less than $500,000 to fund their expenses, compared with only 22% of those still in the workforce who think they could retire on that sum, underscoring how perceptions shift once people stop working.
3. Healthcare premiums
In the U.S., healthcare is the ultimate financial wildcard. For many seniors worried about the costs, working until they qualify for Medicare at age 65 seems reasonable. Still, a 65-year-old retiring in 2025 can expect to spend $172,500 in total health care and medical expenses throughout retirement, according to an estimate by Fidelity (5).
If you’re between the ages of 59 and 65, healthcare costs could make or break your retirement decision. Make sure you consult an expert to help you estimate your total costs before you take the leap.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Bottom line
While most people retire in their 60s, the exact timing can make a big difference. If you retire too early, without enough savings, you could put yourself at risk of poverty in the later stages of your life. However, if you’ve saved enough, tightened your budget and considered all the healthcare costs, you could take the leap and retire early to enjoy a few extra years with your loved ones.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Social Security Administration (1); World Health Organization (2); Empower (3); Employee Benefit Research Institute (4); Fidelity (5)
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
