OVERCOME YOUR FEAR AND ENJOY RETIREMENT

Even if you have a well-funded nest egg, giving up a paycheck is hard. We'll help you start the journey.

- SANDRA BLOCK

WHILE not as terrifying as aerophobia (fear of flying), as common as nomophobia (fear of being without your phone) or as unnerving as coulrophobia (fear of clowns), fear of retirement is a real phenomenon for millions of older Americans.

If you're behind on saving, the fear is probably warranted. But even if you've accumulated a substantial nest egg, the thought of going without a regular paycheck may be scarier than a roomful of circus clowns.

"Although someone may be financially well prepared to retire, emotionally it can be very difficult," says Edward Snyder, a certified financial planner in Carmel, Ind. A recent report from Northwestern Mutual found that Americans, on average, expect to work until age 65, up from 62.6 in 2021. Many are working much longer than that, even if they can afford to retire. About 650,000 Americans in their eighties were working last year, according to an analysis of census data by the Wall Street Journal, up about 18% from a decade ago.

Given the increase in longevity, it's not surprising that Americans are working longer, but the motivation to stay on the job isn't necessarily financial. A survey by Hearts & Wallets, a research firm, found that nearly 20% of respondents between 65 and 74 with investment assets of between $2 million and $5 million were still working. "Whether households are retired or not has very little to do with investable assets," the report said.

The downside to delaying retirement is that you may miss out on some of the best years of this stage of life. "We emphasize that retirement has the Go-Go, Slow-Go and No-Go years, and we don't want to see clients sacrifice their Go-Go years because they are afraid of uncertainty," says Nicholas Gertsema, a certified financial planner in Saint Joseph, Mo. Delaying retirement can also create stress in your marriage if your spouse has stopped working and doesn't want to hike the Camino de Santiago trail alone.