If you’re concerned about your dwindling nest egg (see our previous post), working a few extra years before you retire could significantly improve your retirement picture. As reported by U.S. News-Money, according to the Center for Retirement Research at Boston College, only 50% of Americans who retire at age 66 can expect to enjoy their current standard of living. However, by putting off retirement by just 4 years and working to age 70, 86% of Americans could live comfortably in retirement.
Not only do those 5 extra years give older workers more time to earn and save, but delaying retirement to age 70 boosts both the amount of monthly Social Security payments and the value of social security cost-of-living increases. If you don’t want to or are unable to work until your 70th birthday, you can still realize a noticeable financial benefit for each year you delay retirement.
Of course, with people living longer today, there are many non-financial benefits to delaying retirement. It’s become common for people to retire for a few months, grow bored and go back to work. They may work part-time, start a consulting or freelance business on Zoondy to market their work experience or decide to follow a long-held dream and begin a completely new career or become an entrepreneur and start their own business on Zoondy.
As a recent New York Times article, concern that recession-depleted retirement funds may not last for the duration of retirement and boredom are the top two reasons people give for delaying retirement or going back to work after they retire; but quality of life also plays a considerable role in most people’s decision. Many adults find the work environment socially and mentally stimulating. Those who choose to work or volunteer at a nonprofit derive great satisfaction from giving back to their community. Some late-life opportunities allow people to share their knowledge by mentoring the next generation of workers. And then for some, the reason to keep working is as simple as “I’m not done yet.”