8/8/2011 2:54 PM ET|
10 reasons to delay retirement
Your finances, social life and even your marriage could benefit from working longer.
Increasingly, Americans are pushing back their ideal retirement age. The age workers expect to retire rose from an average of 60 in 1995 to 66 in 2011, according to a recent Gallup poll. And a Harris Interactive survey released in July found that Americans age 55 and older plan to work until they're 69, up from age 64 in 2001.
Working longer has a variety of economic and social benefits. "At the bottom end of the socioeconomic scale, people need the money and the insurance to make ends meet, and at the upper end, people are working because they want to," says Joseph Quinn, a Boston College economics professor.
Here are 10 reasons you may want to consider delaying retirement:
More time to save. The years immediately before you retire are often some of the best years to save. That's because you'll likely earn more during these years than you did earlier in your career. And once children become financially independent, parents have a unique opportunity to significantly boost their retirement savings. Workers over 50 can delay paying taxes on an extra $5,500 in a 401k and an extra $1,000 in an IRA, compared with their younger counterparts. (Are you saving enough for retirement? Check MSN Money's calculator to find out.)
Fewer retirement years to finance. Many healthy baby boomers can expect to spend 20 or even 30 years in retirement. Postponing retirement means there will be fewer years without income from work that you'll need to finance. Even working part time in retirement can allow you to draw down your savings more slowly.
Continue to delay taxes. Withdrawals from traditional 401ks generally become required after age 70½. However, if you are still working and don't own 5% or more of the business sponsoring the retirement plan, you can continue to delay paying income tax on retirement savings within a 401k. Withdrawals from traditional IRAs will still be required, even if you keep working into your 70s. (How much will your 401k provide? Find out with MSN Money's calculator.)
Higher Social Security checks. Your Social Security payments will increase for each year you delay signing up between ages 62 and 70. A worker born in 1965 currently earning $50,000 per year can expect to receive about $1,340 per month if he or she begins collecting benefits at age 62, according to AARP's new Social Security benefits calculator.
That amount will increase to $1,915 per month if he or she delays claiming until 67, and to $2,374 monthly at age 70. The age you can claim the full amount you are entitled to is in the process of being increased from age 65 to 67, which means you will have to work longer than your parents did to get a comparable level of Social Security benefits.
Health benefits. Workers can't sign up for Medicare until age 65. Finding affordable individual health-insurance coverage, if you qualify at all, can be extremely difficult for people who lose the group coverage provided by an employer. Holding on to your job or finding a part-time job with benefits can be the most cost-effective way to find health insurance before age 65.
Improve your social life. Money isn't the only thing our jobs provide. We form friendships with colleagues and become part of workplace communities. "A lot of people have their main social interactions with their colleagues at work," says Jay Wintrob, the president and CEO of SunAmerica Financial Group. "They become friends and get to know one another's families, and work keeps them in the mix and being viewed as being productive."
VIDEO ON MSN MONEY
How typical of essays supporting delaying, or never, retiring, that the accompaning photo is of a guy in a white shirt and tie who probably works indoors, does nothing on his job more physically strenuous than pushing a mouse around a pad. And he usually doesn't have a 30 year old boss ordering him around all day. In the world of news columnists, laying bricks, plumbing, carpentry, etc. is no more physically difficult than mouse-pushing, and a 70 year old can perform that work as easily as a 30 year old.
Some lucky people have jobs they love and never wan't to leave them. If you're not one of them, why would you want to have some repugnant corporate manager type ordering you around for 40-60 hours a week until you're frail? Or telling you that you'll have to work that weekend and "don't write down the overtime!. We will give you some time off later in the month." That sounds like a form of mental illness to me. Maybe they should put this on their tombstones: "I did what people ordered me to do my entire life."
My advice for workers in their 50's and 60's: Get rid of "stuff" so you can live in a smaller, cheaper place. Pay off the house before you turn 55 or sell it. And save all you can so you can escape from our increasingly oppressive and often destructive corporate culture before you're too old to even hike a half mile at a National Park. Retire in one of the many countries that believe healthcare is a basic human right if necessary. Move back (if you even want to) when you're old enough for Medicare.
Completely divest yourself from wallsteet, who just like washington wants you to work and contribute longer all the while stealing from your 401k with the salespitch of (if you don't invest now you'll miss out on the gains)....unless your pile of money is now only 1/4th. I've heard the ole don't put your eggs in 1 basket scenerio...hmmmm, I let them do all the investing and in 2years got less then 3% before this latest crash....1 word scam.
Wonder why mr spread the wealth isn't going after wall street, this isn't about taxing the wealthy, otherwise Obama wouldn't have let 52,000 americans with swiss accounts off of tax evasion scottfree without penalties, interest or their names to be published, the democrats way of taxes is now they want to get rid of the homestead credit another blow to the average worker and tax company employer contributed healthplans, hmmmmm wonder why companies go overseas, oh but wait Obama now wants another job shipping free trade act with south korea.........I swear these morons are out to destroy america, Then you have foreign aid. We borrow money from china pay interest and then give them 200 million a year on internet and mass transit...companies state owned.But, but, but we might interfere with nonworking do-good hippies in the peace corp, too bad! Get a real job and pay taxes.
You hear about all the cuts to americans, but non to foreigners or congressional pay healthcare, or their retirement.
Everyone of these clowns needs to go with the potus at the front of the pack. S & P outright said, if you don't cut spending we're going to downgrade, which is what the teaparty said...and then these bozos with drug induced constituents want to blame the tea party.....they even call on more spending, wanted more spending and a bigger stimulus which does and did nothing for the average joe, just the wealthy and then the potus after the downgrade said "we've always had a AAA credit rating"...................your right...until now. Screw washington and wallstreet..Divest, and hit them in their pocketbook, wait for the next tax holiday (a program designed for and by the wealthy and pull out)
What a joke, I retired at 52 and have not looked back. You spend what you make and adjust naturally. Don't listen to these people that tell you to work till your in the grave. Go out and enjoy life. What are you going to do with an extra $100 bucks at 90
I am 63 years old and would love to still be working my $115K/yr job. Only one problem; the greedy company I worked for (12-yrs) decided to "modify" their home office workforce in late '08, and let me and about 55 others go. Most of us were replaced with people who came on board for much less. This happened even though the company was making big $$ at the time and still is today. They used the economic downturn as an excuse to do this. But I'm not alone. To make things worse, companies (HR) won't give people like me the time of day when I apply for opportunities I'm well qualified for. Why; because they look at people my age and think we're looking for a short-term bridge to retirement; that we'd work on cruise control, and that we couldn't possibly be able to work for the $$ they're willing to pay. Discrimination in the workplace; sadly it's alive and well. What % of the currently unemployed do you think is 50-55+ yrs of age; disproportionately too high is the answer. This is the thanks we get for (in most cases) being the best at what we do; for being loyal, ethical and trustworthy. My advice to younger workers; get all you can get and the hell with companies who say "we love you; we'd love to have you on board". They will stab you in the back and show you the door the moment the opportunity presents itself. U.S. companies;; you deserve this disloyalty for what you've done and continue to do to American workers. Deal with it!
Top Reasons to Retire Now:
1. You don't like working 7AM - 6PM (What happened to 9-5?)
2. You are going to die and it could be sooner than later.
3. The government will up the Social Security Age most likely before you are ready to retire anyway.
4. Any money the government does not jerk around in the stock market, Wall Street will. Take it out no later than 59 and annuitize.
5. You can decrease your spending to match your savings.
6. When you are stricken ill such as my dad with Alzheimers at age 65 you can at least enjoy 5-6 years of retirement.
People who have worked hard for 40-50 years have the right to retire and enjoy a leisurely life in their early 60's. I'm so sick of the financial freaks trying to mentally force the golden people into working longer so they can benefit. Let them be content with what they have and enjoy their sunsets as they see fit.
Get off the wagon, you financial freaks, life used to be good before you entered the picture!
The big problem I see with raising the retirement age in order to collect Social Security is that this means that older people have to work longer, taking jobs from younger people. If the younger people can't get jobs because they are filled by older people.....how are they going to be able to contribute to Social Security so they have it available when they are ready to retire.
As for harping about Baby Boomers....remember, there were many more of us than other generations, which meant that more money went into the Social Security fund and should be available. We have our government to thank for changing the rules and allowing money from the fund to be put into the General Fund to be used for every stupid "pork" project that came along!! Now, they are saying that the fund is going to be broke in a matter of years....hell yes, if they keep using it for their own stupid needs! Our Government needs to keep their hands off this fund, NOT put it into the General Fund to be used willy nilly, and only then will there be enough money for everyone to retire gracefully!!
20 TO 30 YEARS IN RETIREMENT?
HAVE YOU EVER ADDED 30 TO 69?
SO YOU THINK YOUR GONNA JUST GO 99 CAUSE YOU WANT TO!
IF YOU MAKE 80 YOU ARE ONE OF THE LUCKY ONES.
80 LESS 15 YEARS OF RETIREMENT = 65.
LIFE IS A VAPOR AND AT 69 ITS GONE!
How's this for an idea:
The 26th amendment (granting the right to vote for 18 year-olds) took only 3 months & 8 days to be ratified! Why? Simple! The people demanded it. That was in 1971...before computers, before e-mail, before cell phones, etc.
8. No pay to Congressmen during government “shutdowns.”
****The American people did not make this contract with Congressmen. Congressmen made all these contracts for themselves. Serving in Congress is an honor, not a career. The Founding Fathers envisioned citizen legislators, so ours should serve their term(s), then go home and back to work.
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Your No. 1 priority needs to be keeping safe. But after that, you can save yourself some grief by making careful records -- and keeping all your receipts.