Many older people stop working longer than expected, and often it is not by choice. According to Northwestern Mutual's planning and progress study from 2019, those who expect to work past 65 years of necessity do not feel they have saved enough money to retire comfortably, are worried about social security, and fear the financial impact of rising costs like health care.
However, for others, the decision to extend their career is not something that does not cause financial problems, but rather a desire to continue working. In the aforementioned study, those who choose to work earlier 65 years do so for these reasons.
. "I like the job / career and would like to continue"
The most common reason why today's workers want to expand their careers is that they find their job fulfilling. If your job gives you pleasure, there is really no need to give up just because you are approaching retirement age. And if the hours start coming to you, talk to your employer about a gradual retirement, where you gradually cut down your lessons, but continue to work all the time.
2. "I Want More Disposable Income"
There is a difference in wanting more money in retirement and who need more money. For some people, working longer gives them the opportunity to do the things they always wanted to do, whether it be traveling, owning a boat or finally joining that country club. Therefore, think about the retirement savings and the lifestyle your money will buy you. You may have more than enough to cover the basics of housing, food, and transportation, but if you think of any of your other retirement goals, working longer may be your ticket to achieving them.
3. "There is a social outlet that will help me stay active / prevent boredom"
Retirement increases the likelihood of suffering from clinical depression by 40%, according to research by the Institute of Economic Affairs, and much of it boils down to boredom . Going from a full-time plan to no job at all is probably more difficult than you would think, but if you don't spend your time adequately in retirement, your physical and emotional health may suffer.
If you don't have a plan for how to spend your days in retirement, or don't have many friends who have left the workforce, then it pays to think about expanding your career. This is especially true if going to work helps you maintain your physical health (for example, if you go a lot during commuting).
There is nothing wrong with ending your career in the early to mid-60's you can afford to do so. In fact, 65 is a relatively popular age to retire, because that is when the coverage through Medicare kicks in. But even if you have to retire late because of financial problems, there are several benefits to expand your career. Doing so may allow you to get your dream pension, not to talk about the mental agony that many elderly people experience when they leave the workforce too soon.