Good Reasons to Retire Later
Working longer might work out well for you.2/19/2018
retirement planning
Are you in your fifties and unsure if you have enough retirement savings?
That second choice might be more manageable, and it may also work out better financially.
Research suggests that working longer might be a good way to address this shortfall.
What was the most noteworthy finding?
Here is an example from the report, with an asterisk attached.
If they work for another year, retire at 67 and file for Social Security benefits at 67, they may put themselves in a better financial position. In this simple example, Social Security benefits would constitute the other 81% of their retirement income. They are just slightly past their Full Retirement Age as defined by Social Security, so by retiring at 67, they receive 108% of the monthly Social Security benefit they would have received at 66.1,2
The asterisk in this scenario is the outlook for Social Security. In the future, will Social Security benefits be reduced? That possibility exists.
Working full time until age 67 may be a tall order for some of us. Right now, only about a third of American workers retire after age 65; about a fifth retire at age 60 or younger. Perhaps the ambitious, energetic baby boom generation will alter those percentages.3
Working one or two more years may be worthwhile for several reasons.
Spending another year on the job may help you become fully vested in a pension plan, and it also positions you to receive greater Social Security payments (assuming you are currently 62 or older). Wait until age 65 to retire, and you can leave work without having to worry about buying health insurance – Medicare is right there for you. You also keep your mind active by working longer, and you maintain the friendships you have made through your career or workplace.3
Retire later, and you may do yourself a financial favor.
Consult with a Vermillion Financial Advisor today. Vow to focus on being healthy and wealthy in 2018.
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