Some people believe that the best time to retire is in their 50s. Many others wait until they reach their full retirement age, which for the majority of Americans is 66 or 67. Some people would rather keep working and earning money perpetually.
Have you thought of never retiring? Here are some compelling reasons to stay in the workforce:
Your assets have the potential to increase. You will receive a larger Social Security payout. Work can provide you with fulfillment. You will live a busy life. You can improve your skills.
You can take penalty-free 401(k) or IRA withdrawals at 59 1/2, but required minimum distributions are required after 72. If you stay working, you can live on your salary while your retirement assets grow. If the market is good, you can grow your nest fund.
At 66 or 67, most workers retire. Your whole Social Security income will be paid at this point. Early, reduced benefits start at 62. There are valid reasons to wait. "Before your full retirement age, your Social Security increases an average of 6% per year from age 62 to 67," Kris Whipple, partner and financial advisor with Kristopher Curtis Financial in Nashville, Tennessee, wrote in an email. Social Security grows 8% every year from 67 to 70, so each year you postpone guarantees government-backed growth until retirement.
Earn Social Security income after full retirement age without benefit reductions. Workers who tap Social Security benefits before retirement and continue working will get a maximum benefit before their monthly check is lowered. You can make $22,320 in 2024 by collecting Social Security before retirement. After earning more, $1 in benefits is withheld for $2. Full retirement income in 2024 is $59,520. After that, $1 in benefits will be withheld per $3 of wages above the maximum.
Even with enough money to retire, you may enjoy office culture and company success. After working for so long, stopping work can be difficult, especially for someone without many hobbies, Joseph Favorito, a financial advisor and managing partner at Landmark Wealth Management in Melville, New York, wrote in an email. “Many people simply need a place to feel productive.” Ask your employer about consulting or part-time work. “I have had many clients that continued to work because they felt good about being productive and it kept their mind sharp,” Favorito said.
Denver-based certified financial planner and Epiphany Financial Therapy founder Khwan Hathai wrote in an email that "Remaining in the workforce can offer significant mental and physical health advantages," whether you drive or work from home. “Job routines and demands help maintain a certain level of physical activity, which is crucial for good health.” Learn from younger professionals and share your experiences. “Staying employed often means continued interaction with colleagues and maintaining a sense of community, which can be important for emotional health and belonging,” Hathai said.
Staying in the workforce lets you improve your talents. You might specialize or attend a course to learn more. You may also believe in never retiring. "It's a choice that offers financial security, personal fulfillment, and continuous development," Hathai remarked.
Health and personal situation should guide your choice. Some seniors may find work too much. “Assessing the sustainability of their current role – both physically and mentally – is also crucial,” Hathai said. Ask working buddies about their experiences. They could discuss their career preferences and retirement plans. Choosing a goal after analyzing your money and situation may mean rejecting retirement.