Self-made millionaire: Don’t buy into the idea that ’70 is the new retirement age’

Self-made millionaire and bestselling author David Bach disagrees with the suggestion that there’s a “new retirement age.”

“There’s this new advice out there that 70 is the new retirement age. That is ridiculous,” he tells CNBC Make It. “First of all, the life expectancy for men is 76. You want to retire at 70 and have six years left to retire? Ladies, for you, it’s 81. You want 11 years in retirement?”

He’s responding to an idea popularized by personal finance maven Suze Orman, who, in 2017, wrote on Money: “70 is the new retirement age — not a month or year before.” Orman then reiterated that advice to CNBC Make It: Don’t retire, or claim Social Security, until you turn 70.

Research from the Stanford Center on Longevity suggests that the typical American would benefit from a later retirement age, too.

“Let’s do the reality check on retiring at 70,” says Bach. “The average person in America retires at 62, certainly before 65.” There are a few reasons for this, he says: Health issues, less energy or being forced out of the job.

“So let’s just get real: Most of you are not going to retire at 70. You’re probably going to retire before you’re 65.”