US Markets
Home›US Markets›Sectors›Suze Orman warns AI could force earlier retirement for…
Suze Orman warns AI could force earlier retirement for workers
In a hypothetical example, retiring at 62 instead of 65 reduces total income from Social Security plus a 4% withdrawal estimate to $48,027 versus $60,999.
Finance expert Suze Orman warned that AI-driven job disruption could accelerate worker exits in industries where the technology is adopted, leaving some people with fewer opportunities to keep working into their later years, according to Yahoo Finance.
Orman said the risk is especially high for workers in their 50s who plan to rely on employment into their 60s or 70s to bridge savings gaps, arguing that forced early retirement can derail retirement plans when savings are not built up as expected.
Yahoo Finance also lays out a scenario involving a 50-year-old Gen Xer with $215,600 saved in a 401(k) and $71,000 in annual earnings. The example assumes contributions of $7,000 per year through age 65 and an average 8% return, along with a Social Security benefit of $2,167 at 65, two years before full retirement age of 67.
In the example, retiring at 65 would put the worker at about $873,875 in savings, producing roughly $34,955 under the 4% rule, with combined income of $60,999 including Social Security. If the person retired at 62, the example estimates savings of $675,681 and, after accounting for early-filing penalties that reduce the Social Security benefit to $1,750, total income of $48,027 from both sources.