Monday, June 16, 2014

Benefits and Challenges to Postponing Retirement

Depending on your older loved one’s personal situation, there are many different benefits and challenges associated with delaying retirement. Here are some points to consider, and why retiring later might be beneficial or a big problem for your elderly friend or relative.
Advantages of Retiring Later
Spending a few more years at work may not seem like the most attractive prospect for your loved one. But, for some, it could greatly improve the quality of their life after they do retire. Postponing retirement will allow their investments to grow even more and will reduce the amount of time spent that they are withdrawing from their investments. 
In addition, each year of full-time work adds an additional year of earnings to his or her security record. That could lead to improved benefits when they do leave their job. Furthermore, those who do so can receive delayed retirement credits. These increase with every year your loved one works after their retirement age. 
Beyond financial advantages, there are some well-being benefits associated with continued employment. If your loved one is still vibrant, energetic, and full of life, maybe they will need something to work for and to hold their interest. Maintaining employment and postponing retirement could help stave off boredom that many able-bodied retirees experience after ending their employment too early. 
These employees can continue to be stimulated each day and engage in social interaction. Retirement makes it easy to become more withdrawn, as people could simply stay at home rather than interact with others. But by continuing to work, your loved one will be immersed in social situations, keeping them fresh and on their toes. 
Challenges of Retiring Later
Delaying retirement can come with lots of financial and social benefits. Unfortunately, for some people, these benefits don’t outweigh the chance to spend more time how they want. The freedom that comes with retirement is unique and special, but it does mean withdrawing from investments and savings. 
Furthermore, working past the age of 65 is not always easy. Your loved one may not be passionate about his or her job. He or she may also be in a physically demanding job. Their body may not be able to handle the continued stress, and the idea of staying in this position might be frustrating. In addition, for some people, working past this age might not be safe at all. Senior health is an important fact to consider. 
Even more, older people may find it difficult to pay bills and maintain good credit if they choose to retire at the traditional age. They might have to continue working because they cannot afford to retire. There is a nationwide problem with seniors surviving in poverty—and sadly, that’s something we face right here in Durham. There is sometimes an overwhelming financial demand to continue working past the traditional age of retirement, which is not always good for the elderly. 
Choosing whether or not to retire is a highly personal decision. Support your older family member or loved one in their decision making process, and help advise them wherever you can. Consider their physical and mental capabilities, as well as their financial stability. Each of these will work together to determine the right choice for your friend or relative. 

1 comment:

  1. Is retiring at 65 still an option for a lot of people? I feel like since the cost of living has gone up and most people are having to get multiple part-time jobs that it's harder to save for retirement. I think that it's something to think about, whether you'll retire at 65 or not, before you reach that part.