Best Reason to Delay Retirement

Most people are thinking of delaying their retirement in order to work longer, save more money, add to their investment portfolio and avoid having to dip into retirement savings until a bit later in life.

There is, however, another major reason you should consider delaying your retirement.

Those who delay retiring are more likely to live longer

Studies and research by actuaries — the professional mathematicians who advise pension funds — show that working longer and retiring later improves life expectancy. Andrew Gaches, a longevity consultant said that "retiring at age 70 rather than 60 adds around 13 months to men's life expectancy — and 12 months to women's longevity — even after allowing for differences in individuals' health, wealth and lifestyle.”

The Stanford Center on Longevity, quoted a study that indicates "the death rates of those who were still working were roughly half that of the death rates of men the same age who were fully retired.”

Living longer is certainly of major interest to most people, but living longer is important only if your quality of life is a good one and you have enough capital or income to live somewhere near the lifestyle you had planned.

Some areas to check out regarding maximizing income for “retirees” who continue to work in some capacity:

1. Receiving Social Security benefits: If you are receiving Social Security benefits and also work but aren't yet at full retirement age, $1 in benefits will be deducted for each $2 in your earnings. For the year you reach full retirement age, these benefits are reduced $1 for every $3 earned until the month you reach full retirement age. Note the amounts you can earn continues to increase each year.

2. Delay Social Security benefits if at all possible   Unless it is likely you won't live the average longer projected life, if you are in your early 60s you should not tap into your Social Security benefits. By starting at 62, rather than at the government’s “full retirement age” of 66 for people born from 1943 to 1954, you would cut your monthly benefits substantially. If you wait until age 70 you would get 132% of the monthly benefit you would collect at your full retirement age.

Read the “Working & Social Security Benefits” section at RetiredBrains for more information on this subject.

Also check the Social Security Benefits Estimator and Calculator. The information on this page of the Social Security website provides all kinds of information as well as links to where you can find answers to many of your questions.

3. The costs of health care and how you pay for them during your retirement years should be a major consideration. If you continue to work full-time, employer paid health care benefits, whether they are paid in full or contributory, are relatively reasonable. If you stop working before you are eligible for Medicare these costs are likely to be substantial.

Once you are on Medicare, and if you also take out a supplemental insurance policy, the costs even with copays, in most instances, is affordable. For more information click here.

Additional links where you can find information of interest regarding continuing to work well into your retirement years:

Search Temporary & Part-Time Jobs and project assignments as these are the kinds of employment more available to boomers and older job seekers.

Search seasonal jobs. CoolWorks.com includes a section devoted to seasonal jobs for what they call “older and bolder” job seekers.

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