WASHINGTON, D.C. (7News) \u2014 Americans are saving more for retirement than ever before, on average, close to 15% of their income every month. <\/p>\n
A local financial planner, however, is flipping the script on what you think you know about retirement and he\u2019s making waves with a bold new message: maybe you don\u2019t need to save that much after all.<\/p>\n
Derek Coburn is a Northern Virginia-based financial advisor and the author of the new book ‘Let\u2019s Retire Retirement’. In the book, Coburn makes a compelling case for a radical shift in mindset: save less now and spend more on the things and people you enjoy today.<\/p>\n
\u201cWe\u2019re seeing this big \u2018unretirement\u2019 movement,\u201d Coburn explains. <\/p>\n
\u201cPeople are going back to work, not because they need the money, but because they miss the connection. They miss the contribution.\u201d<\/p><\/blockquote>\n
In fact, 25% of people who retire at 65 end up returning to work, often because retirement wasn\u2019t what they expected. That statistic is central to Coburn\u2019s message: maybe retirement doesn\u2019t have to be a hard stop at 65, and maybe that traditional goal isn\u2019t the one-size-fits-all plan we’ve been led to believe.<\/p>\n
Rethinking the Magic Retirement Age<\/strong><\/p>\n
Coburn\u2019s message is rooted in the idea that our obsession with age 65 as the finish line is outdated. He explains that the number comes from 1889 Germany, where retirement benefits were first envisioned, starting at 65, a time when life expectancy was roughly the same. The U.S. adopted a similar approach with the introduction of Social Security under President Franklin Delano Roosevelt in 1935, setting the target retirement age at 65 when life expectancy in the U.S. at that time was 71.<\/p>\n
But with people now living well into their 80s and beyond, Coburn argues that clinging to the 65-year milestone is not only unnecessary, it may be hurting our overall quality of life.<\/p>\n
\u201cHow much thought have you actually given to why this age is appropriate for you?\u201d he asks his clients. \u201cMost people say they haven\u2019t thought about it at all.\u201d<\/p>\n
The High Cost of Over-Saving<\/strong><\/p>\n
While financial security is important, Coburn says many Americans are now so focused on saving for a future they might not fully enjoy that they\u2019re missing out on life today.<\/p>\n
\u201cThere\u2019s a very large percentage of people playing this money game,\u201d he says. \u201cThey think they need to save a certain amount by a certain age, no matter what, but it\u2019s costing them their relationships, their health, and their happiness.\u201d<\/p>\n