6 reasons to consider delaying your retirement

If you have been dreaming of retirement since entering the workforce, you may have some idea of ​​what it will be like when you are no longer working. But there is a possibility that you will not start retirement when you thought you would, perhaps due to circumstances beyond your control.

About 40 percent of workers plan to push retirement later in life due to inflation, a recent survey by the Nationwide Retirement Institute says. Even if life doesn’t always go according to plan, would-be retirees can make the most of a bad situation by delaying retirement. So, if you’re on the fence, here’s why you might want to consider retiring later than you initially thought.

For many retirees, $ 1 million is the magic number of retirement savings, but Americans are nowhere near that figure, overall. According to Vanguard’s “How America Saves 2022” report, workers aged 45 to 54 in Vanguard retirement plans had a median of $ 61,530 at the end of 2021. Those aged 55 to 64 had a median of $ 89,716 in their plan.

Delaying retirement gives you more time to save for your golden years and less time to live off your savings. Many retirees fear they will run out of money before they die, so the more time you spend saving, the less you’ll depend on those savings when it comes time to stop working.

Although you can apply for Social Security as early as 62 years of age, the later you postpone it, the more you could possibly apply for. Waiting until your full retirement age or until you reach the age of 70 could greatly increase your benefits. For example, those with a full retirement age of 67 could increase their monthly allowance by 24% if they waited until the age of 70.

Delaying Social Security means you will have to make up for that potentially lost income. Without a solid nest egg in place, you may have to delay retirement longer than expected. Continuing to work may be your only, or main, source of income for a while longer. In the meantime, though, you’ll be blocking other COLA Social Security upgrades while you’re at it.

If you are happy with your work and otherwise happy to work, you don’t have to stop once you hit a magic number. Not everyone likes their job and many are looking forward to the day when they no longer have to go to the office. But if you are satisfied, don’t feel like you have to stop.

In addition to income, work has numerous other emotional, psychological, and mental health benefits. Older workers don’t have to stop working at a certain age, especially if they’re having fun.

While income is useful, a job typically offers other benefits as well. For example, you might have a great 401 (k) program matched to the employer. If you’re not yet eligible for Medicare, you can also rely on health benefits. These benefits may be better than those offered by ACA health care grants, or at least for much less than what you would pay.

Some workers may receive other benefits, such as reimbursement for continuing education, gym membership, reimbursement of some bills, and more. If you want to keep certain benefits that you can’t get if you quit your job, you may want to stay a little longer.

With inflation at its highest for several decades, rising costs are hurting everyone, including pre-retirees. Again, with roughly 40 percent of respondents rejecting their retirement due to inflation, according to the recent Nationwide Retirement Institute survey, it can make sense to wait for the price increase and make sure their finances are on a tight footing. stable base before moving on to the next step.

While you wait, use Bankrate’s pension calculator to figure out how long your money will last.

For many reasons, your original retirement plan may not have worked as well as you thought. For example, you may not be able to downsize due to an uncertain housing market. Or you got laid off during the pandemic and had to find a job that wasn’t what you traditionally did for work, so you’re making up for lost income now and need to keep working.

Maybe you wanted to move to be close to family, or sudden health problems consumed more of your budget than you expected. Regardless of the reason, you may not be able to retire now, and you may need to reevaluate your plans or consider alternatives, including working longer.

Bottom line

Retirement is not a one-size-fits-all path. If you have to delay your retirement due to something unexpected or things didn’t go according to plan, don’t worry. If you feel stuck and don’t see a way out, you may have more options than you think. Take some time to review your choices now so you can chart a path to retirement in the future. And if you’re looking to avoid this in the future, here’s how much you should have saved at each age to stay on track.

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