Originally Posted by
Gunfighter
Taking a lump sum early retirement could be the greatest financial move available. Imagine investing a huge lump sum at current market prices and catching the next decade of recovery.
I won't castigate anyone who planned an early retirement, but is now holding on til 65. That said, if you are within a year or two of retirement, your portfolio should have already contained a proper balance of equity and income holdings. Being 100% equity until retirement date, then making the shift is irresponsible at best. The last few years in the workplace should be building cash for retirement and transitioning to an income production vs growth. If your portfolio just tanked and you want to work til 65 instead of 63, go for it. Stock away a few grand while stocks are on sale. If you start lobbying for 67 because the market just tanked, get out of my seat old man.
Even in retirement there is an appropriate place for equities. It really comes down to your balance and draw down plan. How conservative or risk tolerant you choose as an individual will determine the reliability of the retirement. If you are going to live for 25 years after retirement you need income and growth unless you have other sources of income. Inflation over that amount of time requires it.
By delaying retirement by 2 years you turn those years into earning years and don’t start drawing from the lower value. Postponing likely aids the recovery of retirement funds and adds more. It also reduces the number of years you need to use those funds. If you’re able to work or, why wouldn’t you? I hope they retire all the same, but putting myself in that situation, I’d work until I could no longer hold a 1st class medical.