The first thing that comes to mind when people heard that someone would soon turn 65 is that the person will retire soon. Many also wanted to turn 65 so that they will be able to retire from the workforce. Of course, there are lots of good reasons to retire at 65, and one of them is to have ample time to enjoy what you love doing and live life to the fullest. There are also reasons why this age is not a good time. Retiring at this age isn’t always all about awesome things you can do because there is also the downside that goes along with it.
Here are three heavy reasons why you may want to delay your retirement until later age:
The later you withdraw from your social security, the bigger benefits you’ll receive, of course, the opposite happens when you start withdrawing at an earlier age, such as at 65. Therefore, it is good to wait until your full retirement age before you start to withdraw your Social Security benefits. Full retirement age depends on what year you are born. Refer to the table below:
Retiring early means you’ll need to fund longer years in retirement. Your savings should be able to last as long as you live, and retiring early would make that very hard.
The problem of retiring early or at 65 is that you won’t have a chance to add more to our savings. Retiring in later years will enable you to have ample time to cram into your savings making it bigger to provide you more comfortable golden years.
If you are among those who saved just fairly well, retiring at 65 might compromise your future financial being by leaving employment world early.
The idea of having a lot of time to do everything you want seems like heaven. But having too much leisure time can eventually backfire. According to research from the Institute of Economic Affairs, retirees are 40% more likely to suffer from clinical depression than younger workers.
You need to put in a lot of effort to be creative to fill in your time when you retire early. If you don’t have a plan of activities, hobbies and the finances to support such activities, then you might end up bored with your daily routine. To avoid such detrimental boredom, delay your retirement to later age.
You still need to make important decisions regarding your health care benefits such as Medicare enrollment when you turn 65 and are still working. You should start to think about these decisions at least three months before your 65th birthday.
If you are still working and are getting health insurance benefits from your employer, you could save a huge amount of premiums from delaying enrollment to Medicare Part B and enrollment to Medicare supplement plans. That amount you saved can be added to your savings.
Delaying retirement offers a lot of benefits that can fortify your retirement. It can also lessen your worry to some of retirement’s uncertainties. Consider retiring at a later age so you’ll have more time to save and prepare and boost confidence to enter your golden years.