Experts Urge 59% of Americans Seeking Early Retirement to Keep Working Part Time
Updated
Updated · The Washington Post · Oct 4
Experts Urge 59% of Americans Seeking Early Retirement to Keep Working Part Time
3 articles · Updated · The Washington Post · Oct 4
Summary
59% of working Americans want to retire early, but advisers say the most practical path is often scaling back to consulting, teaching, seasonal work or another part-time role rather than stopping work completely.
A $40,000 side income can spare retirees from withdrawing the equivalent of roughly $1 million in savings at a 4% withdrawal rate, while also cushioning portfolios if markets fall soon after retirement.
Health coverage is another hurdle: retiring before Medicare begins at 65 can raise costs sharply, though moderate income or part-time jobs with benefits may help bridge the gap through ACA subsidies.
Planners also warn early retirees to prepare for access limits on traditional IRA and 401(k) money before age 59½, including the usual 10% penalty, and to build structure, community and purpose into a longer post-career life.