There was a time when planning for retirement was a pretty straightforward process. It was reasonable to assume that you’d work 30 or 40 years for the same company then retire at age 65, armed with your Social Security and a nice company pension.

My, how things have changed.

Today’s retirement planning isn’t nearly so black and white. Unemployment continues to be a real concern and those hefty company pensions are all but extinct. Add to that the market uncertainty created by recent recessions and it’s no wonder that so many people worry about their ability to retire comfortably.

Yet, while those concerns are certainly real, that doesn’t mean you can’t still plan (and enjoy) a financially-secure retirement. You just might have to adjust your expectations a bit.

People who are not yet receiving Social Security for example, will become fully eligible at the age of 66, 67, or at some point between these two birthdays (the exact age of eligibility is determined based on the precise year of your birth).
However, you can choose to work longer if necessary, to ensure your financial security. Working longer allows you to accumulate delayed retirement credits and you can continue to accumulate these credits until you reach the age of 70.
These credits will increase the monthly benefit that you receive when you start drawing a monthly payment and you can even choose to continue working after you start receiving benefits without penalty.

Choosing to work longer also allows you to contribute more to an IRA or 401(k), giving you that much more compound interest to work with when you do finally decided to retire.

Granted, working longer may not be the retirement plan you first had in mind, but learning how to adjust your expectations can be the key to enjoying a positive result, in spite of whatever obstacles might come your way.

To learn more about retirement planning, give us a call today.

Larry Parman
Author, President and Founding Attorney
Parman & Easterday