10 Reasons to Delay Retirement
Your finances, social life, and even your marriage could benefit from working longer
Increasingly, Americans are pushing back their ideal retirement age. The age workers expect to retire rose from an average of 60 in 1995 to 66 in 2011, according to a recent Gallup poll. And a
More time to save
The years immediately before you retire are often some of the best years to save. That's because you'll likely earn more during these years than you did earlier in your career. And once children become financially independent, parents have a unique opportunity to significantly boost their retirement savings. Workers over 50 can delay paying taxes on an extra
Less retirement years to finance
Many healthy baby boomers can expect to spend 20 or even 30 years in retirement. Postponing retirement means there will be fewer years without income from work that you'll need to finance. Even working part-time in retirement can allow you to draw down your savings more slowly.
Continue to delay taxes
Withdrawals from traditional 401(k)s generally become required after age 70½. However, if you are still working and don't own 5 percent or more of the business sponsoring the retirement plan, you can continue to delay paying income tax on retirement savings within a 401(k). Withdrawals from traditional IRAs will still be required, even if you keep working into your 70s.
Higher Social Security checks
[See 8 New Retirement Rules.]
Workers can't sign up for
Improve your social life
Money isn't the only thing our jobs provide. We form friendships with colleagues and become part of workplace communities. "A lot of people have their main social interactions with their colleagues at work," says
Protect your marriage
When to retire, where to live, and how to pay for it are often points of conflict for married couples. The majority of married couples ages 46 to 75 disagree about their expected retirement ages (62 percent) and what their top source of retirement income will be (55 percent), according to a
In 2001, a
Give something back
Many people approaching retirement have knowledge and skills they would like to pass on to the next generation. Some people would also like to leave a legacy for their children or the community that supported them throughout their career. One way to do this is to continue to work or volunteer in some capacity.
When you have some money coming in from other sources such as
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Personal Finance - 10 Reasons to Delay Retirement
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