Why Planning to Work Longer May Not Save Your Retirement: What California Families Need to Know
If you’re a California resident approaching retirement without adequate savings, you might be thinking: “I’ll just work a few more years.” But recent data reveals a troubling reality—most Americans retire earlier than planned, often due to circumstances beyond their control. Understanding this risk is essential for protecting your family’s financial future.
The Reality Check: When Americans Actually Retire
According to research from the Center for Retirement Research at Boston College, the average retirement age in 2024 was 64.6 for men and 62.6 for women—well before the full Social Security retirement age of 67 for those born in 1960 or later.
Even more concerning: only about half of men reach age 65 while still working, and the numbers are lower for women. This means that if you’re counting on working until 67 or later to build your nest egg, you’re facing a coin flip at best.
Why Do People Retire Early? (It’s Often Not By Choice)
Nearly 60% of retirees leave the workforce sooner than they expected. The two primary reasons are:
For California families managing estates, trusts, or caring for aging parents, this reality creates a dual challenge: not only might your own working years be cut short, but you may also face unexpected caregiving responsibilities or estate administration duties that further complicate your financial picture.
The Financial Impact of Early Retirement
Retiring even five years early can create a significant setback. You lose:
Catherine Collinson, President of Transamerica Center for Retirement Studies, notes that losing those final years before full retirement age—when savings compound and grow—represents “a big setback”for most workers.
What You Should Do Instead: Planning in Your 40s and 50s
Rather than banking on extended work years, financial and legal experts recommend proactive planning:
1. Create Multiple Retirement Scenarios
Plan for both best-case and worst-case situations:
2. Evaluate Your Career Trajectory Now
If you’re in your 50s, assess whether your current job is one you can realistically perform for another 10-15 years. Research shows that people who voluntarily switch jobs in their 50s often end up working longer than those who don’t—possibly because they move to roles better suited to their capabilities as they age.
3. Maximize Catch-Up Contributions
Take advantage of special retirement account provisions:
4. Integrate Estate Planning with Retirement Planning
For California residents, retirement planning shouldn’t exist in isolation from estate planning. Consider:
How California Probate and Trust Can Help
At California Probate and Trust, PC, we understand that retirement and estate planning are deeply interconnected. Our certified estate planning specialists work with California residents to create comprehensive plans that protect your family whether retirement comes as planned—or years earlier than expected.
We offer:
With offices in Fair Oaks, Sacramento, and San Francisco, we’ve helped thousands of California families navigate the complexities of estate planning and retirement preparation.
The Bottom Line for California Families
The data is clear: about one-third to one-half of people who plan to work until 64 or 65 won’t make it. Being realistic about this possibility is crucial for protecting your family’s financial security.
Start your planning today—in your 40s and 50s—by considering all possible retirement scenarios. Evaluate whether your current career path supports working longer. Maximize your catch-up contributions while you can. And most importantly, work with experienced professionals who can help align your retirement strategy with your estate planning goals.
Take Action Now
Don’t wait until you’re forced into early retirement to discover your plan wasn’t realistic. Schedule a free consultation with California Probate and Trust, PC today to discuss how we can help you create an estate plan that protects your family—no matter when retirement actually arrives.
Call (866) 674-1130 or visit cpt.law to get started.
Legal Disclaimer
This article is provided for informational purposes only and does not constitute legal or financial advice. The information presented is based on publicly available research and general legal principles applicable in California. Every individual’s situation is unique, and retirement and estate planning strategies should be tailored to your specific circumstances. This article does not create an attorney-client relationship. For personalized legal guidance regarding your retirement planning, estate planning, probate, or trust administration needs, please consult with a qualified attorney licensed in California. Past results do not guarantee future outcomes.
Source: Investopedia – The Hidden Risks of Planning Retirement Around Longer Work Years