It may turn out that based on your current retirement income projections, yacht travel is off the table and retiring according to your initial plan will be difficult. Tacking an extra five years onto a career can seem like a setback, but the impact on a retirement portfolio can be substantial.
That's because of two things, according to Bruno: "The power of compounding. And the other thing is that you're still contributing. If you're over 50, you can take advantage of catch-up contributions," she says.
Once you have a general idea of how much money you can live on in retirement, try it out before leaving the workplace.
"Plan out what your available resources for income will be in retirement, and then spend a year or two living within that amount. This is a good way for a person to really get a handle on living within a new -- and for most -- constrained budget," says Jim Blankenship, Certified Financial Planner, founder and principal of Blankenship Financial Planning in New Berlin, Ill.
The beauty of planning early is that if you find your retirement budget chafes a bit, there's still time to downsize your life, get out of debt and save like a maniac.