Five reasons to think about retiring past 65
Like many people, you may be looking forward to the day you can retire from work. You might even be thinking about retiring a few years early—but have you ever thought about the potential benefits of retiring a bit later in life?
Delaying your retirement may offer several benefits, especially if you’re not sure what you’ll do with all your free time once you stop working. Whether you just want to spend a few more years working at a job you love or to have more time to save, delaying retirement may be an option for you.
Still unsure about a later retirement date? Here are five reasons to consider delaying retirement.
1 Continue earning a little longer
Learning to live with less income can be one of the hardest things about retirement. Delaying your retirement date means you can keep on earning employment income—and it also provides you with more time to contribute to your 401(k), your IRA, and any other retirement savings accounts you have available to you.
2 Benefit from your benefits
If you have access to health benefits through your employer, you’ll continue to enjoy the benefits of your plan while you work. And if your spouse also qualifies for your health plan, that may be another important advantage of working a bit longer.
3 Earn higher Social Security benefits
If you’re 65 or younger today, then you haven’t yet reached your full retirement age for Social Security retirement benefits. Reduced benefits may be available if you’re younger, but if you start receiving benefits early, your benefits are reduced a small percentage for each month before your full retirement age. On the other hand, you can qualify for higher payments if you begin taking them after your retirement age, although the incremental increases are capped at age 70.
What’s full retirement age for Social Security retirement benefits?
| Year of birth | Full retirement age |
| 1943–1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 10 monhts |
| 1960 or later | 67 |
For illustrative purposes only.
4 Keep enjoying meaningful work
If you love your job, you don’t have to say good-bye to it as soon as you turn 65. If you’re somewhat ready to retire but still want to enjoy the fulfilling aspect of going to work, think about gradually reducing the number of hours you work each week. This may help you slowly phase into retirement.
5 Employers value senior talent
In a survey taken just before the COVID-19 outbreak, more than 90% of employers said that they regard older workers and prospects to be as or more attractive than their younger counterparts. Of course, you know what kind of work is best for you at this point in your life, but it may be reassuring to know that opportunities are out there in professional and supporting roles.
No matter when you plan to retire, look carefully at your options, and choose the ones that are best for you. If you need some help, contact a financial professional for guidance.
Important disclosures
The content of this document is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Please consult your own independent advisor as to any investment, tax, or legal statements made.
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