By waiting to retire, you could put a lot more money in your pocket.
Are you nearing retirement age?
If so, you have a choice coming up.
Should you retire as early as possible or should you wait?
According to a recent Kiplinger article titled “6 Reasons to Work Past Retirement Age,” delayed gratification could work in your favor.
Do you receive health insurance, life-insurance and employer-matched 401(k) contributions?
These are valuable.
In fact, they could save you hundreds or thousands of dollars by keeping them as long as possible.
A Larger Pension.
Fewer employers provide pension, but some do.
If you are one of the lucky few, staying longer will give you more pension money.
Pensions are calculated based on years of service and your salary.
Not all employers calculate this the same way though.
Some may calculate based on your average earnings for the last three or five years of employment.
Others use the average of your earnings for all the years you were enrolled in the pension plan.
Is your income increasing at work?
If yes, you could get more money by sticking around.
The Joy of Working.
Work can be fun.
Chances are you have built friendships with coworkers.
You also may enjoy the feeling of accomplishment and the act of doing good work.
A job provides structure and a sense of purpose.
Unless you have specific plans or hobbies for retirement, working longer can be good for you.
You can take the extra time to come up with a plan for after you retire.
A Bigger Nest Egg.
Retirement is not cheap.
Aging is not cheap.
You should have savings to last 25 years ... at least!
Do not have enough?
Work longer to make up the difference can help.
And you will want to keep your savings in your retirement accounts as long as possible.
More Social Security Benefits.
Waiting to retire allows you to postpone taking Social Security as long as possible.
Yes, full retirement age is currently 66 for those born between 1933 and 1954 and 67 for those born in 1960 or later.
Does this mean you should take the money at this age?
Each year you delay until age 70, you get an 8 percent increase in your benefit.
What does this mean?
Waiting until you are 70 to take Social Security will guarantee you a larger check.
If you work until age 70, you will also receive income from your employer and will not need to tap into your retirement savings to sustain you.
Retire with Your Spouse.
Are you older than your spouse?
Retirement is more fun shared.
By retiring together, you can enter into new adventures together.
As you can see, there are plenty of reasons to delay retirement.
Talk with your financial advisor and an experienced estate planning attorney to see what may be best for you.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Kiplinger (January 2017) “6 Reasons to Work Past Retirement Age”