Warren Buffett Is Retiring at 94: Will Working at Age 90-Plus Become the Norm?

Warren Buffett recently announced that he plans to retire as CEO of Berkshire Hathaway at the end of this year. He’ll be 95. The average retirement age in America is 62, according to a 2024 MassMutual survey. So, for the average person, waiting to retire until they’re in their 90s might seem extreme.

But for founders and CEOs, delaying retirement for years or even decades beyond the norm isn’t so unusual. The standard retirement age may also be on the rise. The U.S. Bureau of Labor Statistics predicts that the number of people 75 and older in the workforce will increase by 96.5% through 2030.

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So will working to 90-plus eventually become the norm? What are the financial benefits of working this long? What are the drawbacks? Here’s what the experts say.

Also see four ways debt is forcing older Americans to delay retirement.

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Working Until 90 Might Not Become the Norm

For those who are impassioned about their work, retirement might not be in the cards. It’s not because they can’t afford it, but because they simply choose not to stop.

“Warren Buffett may be the exception, not the example — but his longevity in leadership sets a tone we shouldn’t ignore,” said Hanna Kaufman, a CFP at Betterment. “Warren Buffett isn’t working until 94 because he has to, he’s doing it because he wants to.”

Other high-profile individuals who are still working in their later years include Ellen Gordon (CEO of Tootsie Roll Industries) and Bernard Francis Saul II (CEO of Saul Centers). Both are in their 90s.

Kaufman said it’s not likely that working until 90 will become the norm. But for some CEOs, founders and investors, it certainly might be. This is due to a combination of purpose, sense of identity and intellectual challenge.

However, not everyone can keep working until they’re 90 years old, even if they want to. Emotional and physical well-being play a major role in determining whether it’s even possible to keep active in the workforce.

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Working Longer Can Be Financially Beneficial

Buffett has an estimated net worth of almost $143 billion. But for many Americans, the cost of living necessitates working longer than ever before.

Even if you retire before your 90s, delaying retirement can be highly financially beneficial. For example, waiting to collect Social Security until you’re 70 will increase your monthly benefit amount by 32%. As an added benefit, working longer means higher potential retirement savings.

“Earning for longer, for example, $80,000 a year, can make quite a difference in the size of savings, particularly with compound interest in a 401(k) account,” said Seann Malloy, founder and managing partner at Malloy Law Offices.

If you have an employer-sponsored retirement account — like a 401(k) — you can also hold off on taking required minimum distributions (RMDs) while your money grows tax-deferred. The exception is if you own 5% of the company.

Notably, you’ll need to withdraw a certain minimum amount from other retirement accounts when you turn 73. This includes traditional IRAs, SIMPLE IRAs and SEP IRAs. Roth IRA owners can keep contributing while they’re working without taking those RMDs.

Plus, the longer you work, the longer you can hold off on using those retirement funds. This can ease any financial burden when you retire.

Last but not least, there are healthcare costs to consider. Continuing to work can help combat these costs. “Continued employment may also allow you to keep access to employer sponsored health coverage, which can significantly reduce out of pocket medical costs,” Kaufman said. “These assumptions hinge on the assumption that you’re healthy enough to work and have a job that allows for that kind of longevity.”

Will Americans Be Forced To Work Until They’re 90?

Even with the retirement age on the rise, it’s unlikely that people will soon be forced to work until they’re in their 90s. But that doesn’t mean early — or even on-time — retirement is always a possibility.

“For some, working longer may be a choice — but for many, it’s quickly becoming a necessity. Between rising healthcare costs, inflation, and the decline of traditional pensions, the financial pressure to delay retirement is real,” Kaufman said. “While some work longer for purpose or passion, others are doing it simply to stay afloat.”

Don’t wait to start planning. The sooner you start saving and investing, the better your chances of retiring when you want to.

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This article originally appeared on GOBankingRates.com: Warren Buffett Is Retiring at 94: Will Working at Age 90-Plus Become the Norm?