3 perfectly good reasons to retire in 2026 (even if you can’t afford to)

As of 2025, most Americans say they need at least $1.26 million to retire comfortably, but 48% expect to have less than $500,000 by the time they leave work (2).

If you’re part of that cohort, you’re probably considering ways to delay retirement or work longer hours. Conventional financial advice would certainly focus on expanding your nest egg and prolonging your career.

However, here are three reasons you may want to consider retiring even if you’re falling short of your “magic number.”

1. Many people never spend the money they saved

There’s some evidence that retirees actually spend less than they anticipated once they leave the workforce.

Research by economists David Blanchett and Michael Finke found that a typical retired couple with at least $100,000 in savings withdrew an average of just 2.1% per year (3). That’s far short of the widely cited 4% rule that most retirees and financial experts use as a starting point.

This underspending suggests traditional financial advice may be too conservative for some households. In some cases, retirees may be able to sustain a comfortable lifestyle with mid–six-figure savings rather than needing seven figures.

Everyone’s situation is different, and your location or lifestyle needs may warrant a bigger budget and larger nest egg. But consider whether the trade-off you’re making by working a few more years and boosting savings is worth the effort for you. If not, consider taking the leap early.

2. Time and health is more important than money

Financial models, spreadsheets, and actuarial tables are usually based on life expectancy. However, many older Americans may have fewer years in good health than they expect.

According to the World Health Organization (WHO), U.S. life expectancy is about 76.4 years, but health-adjusted life expectancy is only 63.9 (4).

In other words, if you plan to retire at 65 you may have already passed your expected years in full health, and could spend much of your retirement managing chronic conditions or health concerns.

For some, this may be a good reason to retire early. A smaller nest egg may be a worthwhile compromise if you want to spend more time scuba diving with your family in the Maldives.

Even some octogenarian billionaires would, presumably, give up a portion of their wealth to be 20 years younger or 20% healthier today. If you share that perspective, maybe retiring with less may make sense for you.

3. Open to unconventional financial moves

There’s a good chance your retirement plan and “magic number” are based on a lifestyle that is familiar to you and your family. But if you’re falling far short of your target, maybe it’s time to consider some unconventional moves.

Downsizing, for instance, could help you unlock some of the equity that would have been otherwise trapped in your home. Similarly, moving to another state could reduce your tax burden and cost of living enough to lower your required savings target.