R is for the New “Retirement Reality”

British GP examining young child with mother

Many of us see ourselves retiring before we hit seventy but the reality of this happening is becoming more of a dream. As a matter of fact, a growing number of Americans are embracing this new reality and driving themselves to work well into their 70s. A new Bankrate survey finds 70 percent of people want to work as long as possible.

Many say they want to continue to be active, make a difference and no longer see early retirement as a goal. As our society’s definition of retirement continues to evolve so does the mentality of many adults. No longer are we ready to throw in the towel at sixty-five; It may be because we find ourselves in excellent shape, want to keep our minds sharp, or are in desperate need of the additional income but working well into our seventies is becoming a “retirement reality.

So whether you’re working into your seventies for the money; or just because you wish to stay active. Here are some of the perks when you remain in the workforce:

Extra income — working in your retirement years, either part-time or full time will provide you with additional revenue. If your retirement savings didn’t grow as you planned, then working continues to be a reliable means of income.

Help protect your body and mind — retirement can bring boredom, lack of purpose and isolation. Research from the Institute of Economic Affairs found this can have a profound impact on both mental and physical health. The study showed an increase of clinical depression by 40 percent and a 60 percent increase in physical illness. So staying in the workforce may provide a great holistic solution, keeping the mind, spirit, and body in excellent working order and an additional bonus; it may help ward off extra medical expenses.

Reduce Spending — if you’re still working, leisure time is limited and so is the amount of money you will spend on entertainment.

Savings — the longer you work, the more time you have to save, it also shortens the years spent in retirement, helping your retirement dollars last longer and if any raises occur it will contribute to increasing your social security checks. Not to mention the benefits of delaying your social security payments. Check out AARP’s calculator to help you maximize your payout.

Medical Benefits — you can continue to take advantage of an employer-sponsored health plan which may exceed the benefits of Medicare.

As you can see, there are plenty of advantages extending your working years. However, if this isn’t appealing, you must start saving for retirement today!

Answers from A to Z

About Ann Zuraw

Ann Zuraw, the voice behind "Chicks, Chat and Change", is a Certified Financial Planner (CFP®), Chartered Financial Analyst (CFA®), and Certified Divorce Financial Analyst (CDFA™).If you have comments on this post contact Ann Zuraw

, , , , , , , , , , , , , , ,