Hurrying to Get on Track with Retirement Savings? Here Are 4 Methods to Reach Your Peers' Level
In an increasingly complex world, making informed decisions about retirement is crucial. Nora Gantenbrink, a wise and insightful individual, shares her experiences and findings on the advantages of working past traditional retirement age, particularly in the case of her husband.
One of the most compelling reasons for her husband to continue working is the potential impact on his lifespan. Research suggests that working past retirement age could help him live longer, a factor that cannot be overlooked.
Another significant advantage is the ability to delay withdrawals from their retirement accounts. By working past his Full Retirement Age (FRA) of 67, they allow their accounts more time to grow, potentially increasing their retirement funds.
The decision to work past retirement age also offers practical benefits. For instance, it provides more time for planning post-retirement days, ensuring a smoother transition into this new phase of life.
Moreover, remaining in jobs that challenge us can help maintain cognitive function and possibly reduce the risk of dementia. This is a crucial aspect, as mental health becomes increasingly important with age.
Working longer also has health benefits. Research indicates a connection between working past traditional retirement age and better health, including a reduced risk of chronic diseases. This aligns with the idea that an active lifestyle contributes to overall well-being.
Social interaction is another key factor. Working allows her husband to keep his social skills alive and well, which is beneficial for both mental and physical health.
Financial considerations also play a role. While high-interest debt should be prioritized for elimination to free up funds for retirement, the continuation of employment can provide additional income. In their case, her husband's health insurance is provided through work, a benefit they won't have to rely on solely on Medicare until he's 70.
Lastly, a notable benefit is the increase in Social Security benefits. Her husband's Social Security benefit will increase by 8% annually between his Full Retirement Age (FRA) and age 70, providing a substantial boost to their retirement income.
In conclusion, working past traditional retirement age can offer numerous benefits, from improved health and cognitive function to financial security and peace of mind. It's a decision that should be carefully considered, but one that could significantly enhance the quality of life in retirement.
