Retirement might now be merely an aspiration for some baby boomers. According to a recent Transamerica Center study, 57% of boomers expect to retire at 70 or older, or don’t plan to retire at all.
Traditional retirement might also look different than it does now, as 48% of US workers believe they’ll have a “phased retirement,” where they just wind down their responsibilities and job duties to have more leisure time. The overwhelming reason for putting off full retirement is financial, as 80% of people planning to work past age 65 or work during retirement are doing so for monetary reasons.
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If you’re considering working past retirement age, there might be some benefits beyond financial. However, there are also some drawbacks. Read on to see what career experts advised for those considering putting off retirement.
Waiting To Retire Increases Social Security
Not only do boomers make more money by retiring later, but their Social Security earnings go up, too.
“When near-retirees really realize that Social Security will not replace their income, they aim for the maximum payout that comes at age 70,” explained Marcia Mantell, the owner of Mantell Retirement Consulting, Inc. “Waiting until age 70 results in a significant boost in monthly income — 24% increase or slightly more.”
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Phased Retirement Opens Up Options
Lexi Petersen is the founder and chief creative officer of Cords Club, where they offer phased retirement to employees. Petersen has seen that this approach offers the best of both worlds for boomers.
“Phased retirement gives [boomers] the option to arrange their days more reasonably so they have time to take care of their healthcare, their grandchildren or just kick back and relax whenever they please,” Petersen said. “Yet at the same time, it gives them the ability to enjoy some of the benefits of being productive and contributing adults, especially in terms of keeping their mind sharp. All of these are not easily possible with traditional retirement, which is all or nothing.”
Working Longer Helps Manage Current Financial Realities
In a time of a shifting economy, author Larry Samuel encouraged older employees to continue working.
“For most of us, given the decline of pensions, increasing insecurity of Social Security, rising cost of living, and greater longevity, working as long as one physically can is a very smart strategy,” Samuel explained. “In the current work environment, keeping one’s job as long as possible is the best career move anyone can make, assuming the individual, regardless of his or her age, finds the work meaningful and life-enriching.”
Keep Goals in Mind
In the end, the choice to retire or not comes down to necessity and desire. You don’t have to keep working if you have the means and no longer derive satisfaction from what you do. Kevin Coleman, a career counselor, advised that you can retire comfortably, so long as you’re ready and making other plans for the future.
“If you are financially able to do so, fully retiring from your work can be very freeing, as long as you are able to still spend some of your time in meaningful ways such as being present with your family, volunteering, or investing in your community in other ways,” Coleman concluded.
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This article originally appeared on GOBankingRates.com: Over Half of Working Boomers Plan To Work Until 70 — Is This Your Next Move?
