When, and If, To Say When

As you approach your golden years, you may want to consider if retirement is right for you.

When we were young, we were told that we needed to study hard and get a good job so we could retire comfortably. For many of us, this was a no-brainer, and some have been more successful than others.

Some people will feel they can never retire and other people who easily can just aren’t ready. Look at Warren Buffett. He’s almost 90, and we certainly don’t see him retiring anytime soon. Or how about Jeff Bezos, the Honda driving billionaire? Even though he lives well within his means and he could easily retire in his fifties (depending on how the divorce goes), we don’t imagine he’ll ever retire. 

As we begin the New Year and prepare to file taxes, many people’s eyes are on their retirement years and how ready they are. For those who are uncertain, here are some of the top reasons why financial planners don’t recommend retirement as the best option for many: 

1. Affordability – Being able to provide for additional expenses from the rising costs of taxes, especially on Long Island, to unpredictable future health issues are definitely reasons to consider working in your elder years. The longer a person works, the fewer years the person will need to set aside funds to supplement their social security checks, especially if social security is going to be a significant part of retirement income. Additionally, you can increase those eventual Social Security checks significantly by putting off receiving the benefits for a few additional years.
2. Exorbitant Health Insurance – The most beneficial reason to put off retirement is medical benefits. Health is a hefty cost when it comes to retiring. According to an August 2017 Bloomberg article on health care costs, the U.S. spends more per capita on prescription medicines and over-the-counter products than any other country. If your workplace offers comprehensive healthcare, that’s definitely an incentive to keep working into your senior years. If they do not, the additional income will help to support your healthcare costs in future years. For many, the most practical reason to delay retirement is workplace health insurance benefits.
3. Improved Health and Wellness – It seems odd but people who have jobs they love with companies they love, working with people they love, are happier and healthier, as pointed out in a March 2017 NY Times article. The reality is that being inactive can reduce life expectancies. Working in your golden year, even on a part-time basis, can be beneficial to keep your mind and body sharp. People who enjoy their jobs are less stressed and less lonely, both key to mental and physical well-being. At its most basic level, putting off retirement is beneficial when your career gives you a sense of purpose.
4. Sheer Boredom – Okay, so maybe this is not an as urgent a reason as the first three reasons, and maybe you have enough money not to be concerned about covering basic necessities and have a substantial safety net built up. However, people love feeling productive, and many people find that feeling through their professional lives. While some people save enough to retire, they still love coming to work to be around people they’ve grown close to. Or perhaps your life is heavily built around your profession and being sedentary isn’t right for you. Whether it is the sense of purpose or the desire to keep moving, opting not to retire may be the best way to keep you happy and feeling alive.

In the end, the best person to make the decision about whether you should retire fully, semi-retire or keep on working is you. However, talking to financial experts as well as your health care providers will help you to make a more educated decision.

Whether you decide to retire or not, it is never too late to plan for all contingencies. Shapiro Financial Planning Group is ready to help you create a financial strategy that will keep the golden years golden.