Five reasons to postpone retirement.

Is putting off retirement the right move for you?

The average retirement age in the U.S. is about 63, but almost a quarter of Americans believe they won’t retire until age 70 or older.1 There are a variety of reasons why Americans delay retirement. Some are financially related, such as not having enough savings or too much debt or ongoing obligations; while others simply aren’t ready to stop working. What a lot of people forget to consider is that there are many benefits to postponing retirement.

Here are a few things to consider as you plan your future.

  1. You may live longer than you think. Consider this: A 65-year-old man has a 50% chance of living past the age of 85, and for a 65-year-old couple, there is a 50% chance that one member will live beyond the age of 92. Which means that your golden years may last longer than you originally planned for.
  2. Your health. A recent study by the Institute of Economic Affairs found that retirement actually causes a major decline in physical and mental health, increasing the likelihood of suffering from clinical depression and decreasing the likelihood of being in “very good” or “excellent” health.
  3. Your savings will have more time to grow. Your later years of your working life are typically some of your most profitable because you are at the top of your career and with the kids (hopefully) on their own, you can sock away more money for your retirement. Not to mention that the government allows you to make catch-up contributions to your 401(k), so the more money you can continue to put away, the better.
  4. Your Social Security benefits will increase. You’ve probably heard this one before—there are great Social Security benefits to working a few years more. For each year you delay taking Social Security, up until the age of 70, benefits rise substantially.
  5. Employer-sponsored health insurance. Whether retired or not, as we age, typically we have more healthcare costs which lead to more out-of-pocket expenses. By staying at your job longer you can take advantage of your employee benefits, including health insurance.

So if you are thinking of postponing your retirement, know you aren’t alone and think about the benefits it may hold for you.

Talk it through with an expert.

We're here to help.

get started
Further Reading

1“Is 70 the new retirement age?,” USA Today, September 16, 2016.