Working Longer Can Provide Advantages
Some of you don’t want to hear this. There have been some studies done recently that indicate that a high percentage of baby boomers who are reaching the typical retirement age are not prepared. By not prepared they mean not enough financial resources available to maintain your lifestyle. While it is sometimes said that experience is the best teacher and we learn from our mistakes, a failure to plan ahead for retirement income needs can be devastating because you simply may not have the time to get yourself back on track.
A lot of people don’t take retirement planning all that seriously because they expect to be able to live on their Social Security benefit alone. In fact, over 60% of the people who do receive Social Security say that it is their primary source of income. However, the average monthly benefit is under $1100 per month. This is something to keep in mind if you expect to be relying solely on Social Security.
If you found yourself falling short of the mark as your full retirement age starts to come into focus, one thing you could do would be to resolve to work until you are 70 years of age. If you do this, you earn delayed retirement credits that will increase your benefit by 8% for every year that you work beyond your full retirement age. (Full retirement age for people who are not yet receiving Social Security is somewhere between 66 and 67 years of age.)
Of course, you would also have the benefit of a few extra years earning income and you may be able to pad your savings during this period as well.
The best way to proceed is to devise a plan that leads to financial freedom during your retirement years so you don’t have to work beyond your full retirement age if you don’t want to. The best way of doing this is with the guidance of a good Oklahoma City retirement planning attorney.
Author, President and Founding Attorney
Parman & Easterday