Retiring at 65 could be a costly mistake for millions

Counting down the years and days until retirement is something most people do at some point. If you've been using 65 years old as your milestone, you may want to rethink things because it could be a big mistake.

Looking at your healthy years

Everyone knows 65 is considered the traditional retirement age, but that shouldn't necessarily be seen as a universal rule. For many U.S. seniors, it could mean having too few healthy years left.

Your goal may be to work hard, retire at 65, and live out your golden years stress-free. Sounds great, but experts point out a growing gap between how long you will live and how well you will live. In other words, if you wait until 65 to step down, you may not have as many active, healthy years left as you assumed.

Retire earlier if you want to enjoy it

According to a Lancet Health study, total life expectancy in the U.S. is 79 years, but when you take health adjustments into account, it's actually only 66.2 years. The data from the World Health Organization is even more eye-opening, putting health-adjusted life expectancy at 63.9 years.

This means if you're retiring at 65, you may only get 1 to 2 years of healthy retirement living. That's a far cry from the stress-free, adventurous lifestyle often depicted in ads.

There can be a negative financial effect too

The assumption is that retiring later means you'll have more money saved. Sure, that may be true, but you may also find much of those savings going toward healthcare-related costs rather than fun things like travel. Retiring earlier allows you to travel while you're still healthy and active.

Of course, retiring before 65 means you'll need a financial plan to bridge your health insurance until Medicare kicks in at 65—but for those who prepare, the trade-off can be well worth it.

Worth thinking through all the options

When it comes to retirement age, there is no one-size-fits-all solution. It's wise to plan ahead, balance your health timeline alongside your financial goals, and start saving as early as possible.

Source: Yahoo! Finance