Should I Postpone Retirement?
For many Baby Boomer Americans, the goal was always set at 65. Once you reach that number, your work in the in the industry you chose is done. You get to welcome retirement with open arms and pursue the hobbies, businesses, and family time that you had been looking forward to throughout the years.
However, this is not the growing trend in the recent years. Baby Boomers are choosing to push back the finish line for a few more years, and they all have varying reasons. Some decide to wait for economic reasons while others delay because they do not feel as if they are done with their careers.
If you are fast-approaching the age of retirement and still unsure whether it is time to bid adieu to your work responsibilities, then here are three considerations to help you decide.
Longevity and the Cost of Care
The long term care situation in the United States is frustrating and worrisome. We are all well aware that the costs of long term care services have increased over the years, and the prices at the moment are terrifyingly high. In fact, so many retirees are facing their worst fear of outliving their savings.
What makes matters more challenging is people are living longer lives now. After turning 65, you can expect to live 20-30 more years, and this is why many are choosing to wait before diving into retirement. As you can see, combining longevity and high care costs could easily lead to a catastrophe. Individuals are often advised to purchase policy coverage early.
What is long term care insurance? You may ask.
For starters, it is an insurance product that covers funding for long term care services. Instead of paying out of pocket and risk draining your retirement savings, you can opt to secure a policy that fits your budget.
More Savings and Less Retirement Years
According to a study done by the Employee Benefit Research Institute, only 21% of workers can say that they are confident about having enough money for retirement.
By choosing to delay retirement, you can boost that confidence by increasing your nest egg. You get to continue saving for the twilight years and have more time exploring other options available to you. By doing so, you can potentially have more liberty in the decision-making during the twilight years.
Moreover, longer time in the workforce means fewer years financing your lifestyle without a substantial salary. You get to maximize your potential in your chosen career and accomplish so much more than you intended.
Although retirement certainly has its benefits, such as longer sleep hours and less work stress, remaining active in your career helps your mind stay in shape. Also, you get to avoid health conditions that may come with retirement. Among these conditions are heart disease, stroke, and obesity, and diabetes.
Delaying retirement has its pros and cons, so be sure to consider all aspects before deciding. Remember that at the end of the day, you have to decide what is right for you. You may also want to consult with your loved ones and family members to see what they think.
Samantha Stein is an online content manager for ALTCP.org. Her works focus on key information on LTC insurance, financial planning, elder care, and retirement. In line with the organization’s goal, Samantha creates content that helps raise awareness on the importance of having comprehensive coverage for a secured and stable retirement.