If Anyone Tells You There is One Best Time to Retire, Don’t Listen to Them Because They are Wrong

The age and date vary from person to person and depend upon multiple factors.

Countless articles about the best time to retire are missing the point. The answer is two words: “It depends.” No two individuals are alike when it comes to this important life milestone. There are two central considerations. Do you have enough money set aside for decades with no income other than what you have saved, and how can it earn you more money? And two, do you have enough interests outside your job to keep your mind and body busy?

The answer to both of these questions has to be yes. The answer to the first one often involves advice from a financial planner. If you don’t have or can’t afford one, some websites may help guide you. Unless you are privy to a crystal ball, all of this calculating does entail a degree of educated guessing.

Having enough money

You might assume inflation is 4%. However, it could be 1–2% for years and then jump to 8-10%, as has happened this past few years. You might assume you can earn a 5% rate of return on your saved money, and it might turn out to be only 1–2% or even better at 7–8%. However, most advisors think you will need 75–80% of your income while working to retire comfortably.

Another more unpredictable challenge is chronic illness. You or your spouse might develop a debilitating illness, like MS or dementia, or suffer a stroke. Home care can be exhausting and expensive. Long-term care in a facility is not cheap either. Most insurance, including Medicare, does not cover it. Consider purchasing long-term care insurance unless you have set aside at least $1 million.

A good fishing buddy of mine is a house painter with less than $50,000 in savings. He knows he will never be able to retire. He spends money when he has it and rarely saves.

Having enough hobbies

I have seen many professionals, including doctors, retire with no idea what they will do daily. A former financial advisor of mine would ask his clients this question before deciding to retire: “What are your plans for next Monday?” Thinking that “I will take up golf or pickleball” sounds good, in theory. But perhaps you will hate it. Do you want to travel most of the time? If the answer is yes, make certain your partner is also retired and on board with this plan.

My personal attorney has few interests outside of the law. He continues to work well into his eighties. Many doctors follow similar paths. One size does not fit all. I also believe many resist retirement because it is the last stage of life, preceding death. Our minds produce an absurd but powerful thought: "If I don’t retire, then I won’t die.”

Some people have little choice about their retirement age as they work for a company that mandates a certain age. Finding a new job in your fifties or sixties is often challenging.

My experience

Near the end of my medical career, I determined I would have enough money to retire at the age of 65. I delayed it a year because my medical group had a manpower problem. I lost patience with modern medicine due to the corporatization of private practice. Medical groups were selling their practices to large insurers or hospital chains. Unsurprisingly, the quality of care suffered. At the same time, the government was intruding between me and my patient regarding medical decision-making.

My best friend was an interventional radiologist a few years older than me. He had enjoyed tennis and sailing. Shortly after retirement, he developed Parkinson’s Disease and could no longer do either. One year later, he was diagnosed with pancreatic cancer and was dead within one month.

His death helped me determine it was time to act. I love to fish, travel, cook, garden, and write. I was not going to risk having the unpredictability of a serious or terminal illness cut short my retirement. Thus, for me, it was the right time to retire.

Adjustments

Like many professionals, particularly physicians, adjusting to retirement takes time, often one to two years. Few people call you a doctor anymore, and no one around will accept your orders. (My wife not so eloquently pointed this out to me more than once.) Many doctors will try to hang on by keeping their medical licenses, volunteering their time, and attending continuing medical education courses. I finally gave up my license four years post-retirement.

Many new retirees will book themselves with activities to “stay busy.” I was, and maybe still am, somewhat guilty of this. I believe it is best to set aside time to do nothing. Perhaps you can read a novel or do a puzzle. I like to fiddle with my garden or fish. It is what I call entering a “Zen Zone.”

I exercise two to three times weekly and practice Tai Chi to help my balance and core muscles. I fish, read, write, cook and garden. My wife and I travel to see new places and visit the grandkids and our children several times a year. The choices are limitless as long as you are healthy and can afford it.

Takeaways

There is no one best time to retire for everyone. It must be an individual decision.
Retirement timing depends upon having saved enough money to live on 75% of your working days’ income and if you have enough hobbies and interests separate from your work.
Ensure your financial planning accounts for a long-term illness and care that could strike you or your spouse.
Know that it takes time to adjust to retirement. There will be ups and downs and periods of self-doubt about your decision.

If you decide to retire, good luck. I would not make a hasty decision about the timing. Think it through and discuss it with your spouse. The bottom line, however, is that the correct time to retire is somewhat subjective and can only be determined by you.

I am a retired MD passionate about culture, health, sports, and food.

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