PHONE: (717) 303-1999

Financial and Retirement Planning Blog

To Delay or Not To Delay; Retirement

These days, more and more people are putting off retiring by the time they reach 65. Instead, these Baby Boomers are opting to continue working until they are a bit older, usually by the time they reach 70. There are a variety of reasons why they are delaying retirement, with one of the chief reasons being that they truly love their jobs and want to continue to be productive in them for a longer period of time. Of course, retiring past the standard 65 years old carries a number of benefits. It is worth exploring these advantages to determine whether its wise to begin planning to retire later in life.

You Can Earn More Money

One of the most obvious benefits of delaying when you retire is that you can earn more money. This is because, naturally, the longer you work, the more money you put in toward the time when you eventually retire. Many people believe that their standard of living will decrease after they stop working. In addition, the longer you hold off on withdrawing funds from your retirement accounts, the more interest they will accrue over time. Over the course of a few years, that money can really add up. You also will not have to downgrade your lifestyle if you put off retirement for a few more years.

Higher Social Security Benefits

If you wait until you are 70 years old to retire, you can collect a higher social security benefit. Legally, you can begin collecting when you reach 62 years of age, but your monthly benefit is reduced by 30 percent. By the time you reach 70, when you begin collecting social security, you can earn an additional eight percent per year. In other words, if you were to claim at 66, your monthly benefit would be $1,000. If you were to claim at 62, however, you would only receive $750. Planning ahead and waiting to collect your social security benefits at 70 would increase your monthly benefit to $1,320.

Longer and Healthier Life

Individuals who put off retiring until a later age tend to be happier and healthier overall, which can increase their life expectancy. Working longer keeps your mind sharp and keeps you feeling useful and productive. Additionally, the longer you work, the longer you can continue to receive health benefits paid by your employer if the company provides them. These health benefits are much better than options you would need after you retire, which you would have to pay for out of your own pocket. This is especially true if you are not yet old enough to qualify for Medicare.

Allows You to Explore New Career Opportunities

Just because you decide you want to put off the time you eventually retire, it doesn’t mean you have to stop working altogether. If you have worked for the same company at the same job for many years but are burned out, you might want to try your hand at new career opportunities. Many people chase dreams and start their own businesses. Perhaps there is something you’ve always wanted to do that involves something you truly love and believe in. This is the time to embark on it. Some people choose to get a job on a part-time basis, which allows them to continue collecting for when they eventually retire but allows them to stay busy and earn money.

These are all compelling reasons why you might want to wait to retire. Weigh out the benefits and decide whether this is the right path for you.   A well thought out retirement plan will allow you to feel comfortable when choosing the “right time” for you to retire- we can help you achieve your goals.

Jason Bergey
Pennsylvania Wealth Management
http://pawealthmanagement.com/
(717) 303-1999
Sources: Hyperlinked In Article

Copyright © 2017 Pennsylvania Wealth Management

Investment Advisory Services offered through Retirement Wealth Advisors, (RWA) a Registered Investment Advisor.  Pennsylvania Wealth Management and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

This information is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Pennsylvania Wealth Management and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.

Investment Advisory Services offered through Retirement Wealth Advisors (RWA), a Registered Investment Advisor. Pennsylvania Wealth Management and RWA are not affiliated. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

This information is designed to provide general information on the subjects covered, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Pennsylvania Wealth Management and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.

Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Retirement Wealth Advisors.

Million Dollar Round Table (“MDRT”) is a membership organization. Qualifying criteria for membership includes attaining specified levels of commissions earned, premiums paid or income earned on the sale of insurance and other financial products. MDRT membership requirements include the payment of annual dues, compliance with ethical standards, and maintaining good standing with an MDRT-approved professional association. The MDRT logo and/or trademarks are property of their respective owners and no endorsement of Jason Bergey or Pennsylvania Wealth Management is stated or implied. MDRT and Retirement Wealth Advisors, Inc. (RWA) are not affiliated.