Suze Orman's Warning: Planning to Work Until 65 Leaves You Vulnerable-2 Steps to Build a Safer Retirement

Why planning to work until 65 is riskier than it sounds

Expected retirement age and actual retirement age often diverge

Planning to work until 65 feels responsible. But it is not the same as being secure. If your retirement depends on one long stretch of income, a setback can disrupt the whole plan.

That is why this matters. The latest retirement data shows a gap between expectations and reality: the median expected retirement age for workers is 65, but most retirees actually retired before that, at a median retirement age of 62, and nearly half said their retirement came earlier than planned.

That is not a minor budgeting glitch. It is a real planning risk.

Allianz also found that one in two workers says they would retire right away if they won, yet most still expect to work straight through to 65 or beyond. The bigger issue is not whether people truly want to quit early. It is that many still anchor their lives to one clean retirement date even though life does not always cooperate.

Suze Orman's point is straightforward: working longer can help your savings keep growing, reduce how much you need to withdraw early, and even let you keep contributing. But she warns that planning to work until 65 becomes risky if it is your only plan.

The practical takeaway is to prepare for an earlier exit, not just the ideal version of retirement. If your plan can work at 62 instead of 65, it is likely more durable.

Tip #1: Reduce your monthly retirement costs before you stop working

Why paying off the mortgage matters

Suze Orman's first recommendation is practical, not dramatic: get the mortgage paid off before you retire.

The reason is simple: a paid-off home can significantly lower your monthly retirement expenses. When fewer bills depend on your portfolio or Social Security, your savings have more room to breathe and your plan becomes less sensitive to bad timing in the market.

Even if you still aim to retire at 65, preparing for a possible exit at 62 can make the plan sturdier. You are not planning to quit early for fun. You are reducing the pressure on your finances if health issues, a layoff, or family needs change the timeline.

A simple way to test the move

Before you retire, run a quick stress test:

• List only the expenses that must be paid every month.
• See how much smaller that total becomes without a mortgage.
• Check whether Social Security and other guaranteed income can cover that lower amount.
• If it can, your plan is likely more resilient.

The main caveat is also simple: do not drain your cash reserves to eliminate a mortgage if doing so leaves you exposed in another way. The goal is to make your monthly burden small enough that an early retirement does not turn into a financial emergency.

Tip #2: Plan for care needs, not just market swings

A strong savings plan can still miss a key risk

Savings only get you so far if the next shock is not a market dip, but a decline in your ability to live safely on your own.

That is why Orman told a careful saver named Tina that retirement is not just about building wealth; it is about protecting it. If one major care shock could significantly undo years of discipline, the plan is still exposed.

That risk is not theoretical. More than half of people over 65 will have intensive care needs, defined as needing help with at least two basic daily tasks or support because of cognitive decline. You may never need that level of help, but preparing for the possibility is part of making the plan resilient rather than fragile.

Steps most people delay too long

A sturdier plan usually includes some of these moves while you still have time to make informed choices:

• Talk with family now about your preferences, so decisions are easier if you ever need help.
• Get essential documents in order, such as powers of attorney and advance directives.
• Keep an accessible cash reserve for care-related costs so you are not forced to sell investments during a market downturn.
• Review long-term care insurance and housing options with a clear head before a crisis forces the decision for you.

A simpler checklist for a more flexible retirement plan

The next step is not to pick a date and hope for the best. It is to build a plan with more than one safe path.

3 steps to run before retirement

• Model an early exit as a real possibility. Run your numbers for retirement at 60 or 62, because the median retirement age is 62, and earlier retirements often come from a health problem, a layoff, or perhaps a loved one who needs care.
• Lower your fixed monthly costs first. A paid-off home matters because it reduces what retirement actually costs each month.
• Protect the nest egg before you need it. Care planning is not about fear; it is about reducing the odds that one family shock derails the whole plan, especially since more than half of people over 65 will have intensive care needs.

If your retirement plan can still work when work ends early, housing costs are lower, and care needs become part of the picture, then you are in a much stronger position to retire when you want to-not just when life forces your hand.