Are you planning on working past age 65? You’re not alone. Traditionally, age 65 has been considered to be retirement age. However, many workers are now saying that their target retirement age is well past 65. In fact, some plan to work to age 70 or beyond.
According to a recent study from CareerBuilder, 30 percent of workers age 60 and older say they won’t retire before age 70. An additional 20 percent plan to never retire. That means half of all workers over age 59 say they will work at least another 10 years.1
Retiring after age 65 could be a wise idea. If you delay your Social Security benefits to age 70, you could see a significant increase in your payment when you finally do file. You can stay on your employer’s health insurance plan, which may be less expensive and more robust than Medicare. Most importantly, though, you get additional years to save for retirement while reducing the number of years in retirement that may need to be funded with distributions from your savings.
There are also nonfinancial benefits to working longer. If you enjoy your work, a prolonged career may give you additional purpose and drive. You might enjoy the social connections you maintain through work. The challenges of work could keep you mentally sharp and help stave off cognitive issues like Alzheimer’s or dementia.
Of course, working past age 65 can be difficult. A broad range of challenges could limit your ability to extend your career. Below are three tips to help you overcome these challenges and extend your career as long as you’d like:
Take care of your health.
Even if you want to work past 65, health issues could prevent you from doing so. According to the Council for Disability Awareness, 1 in 4 adults will suffer a long-term disability at some point in their lives.2 That risk could increase as you age and face greater vulnerability to medical issues.
Don’t let injury or illness derail your career plans. Invest in your health to reduce your vulnerability to medical issues. Eat healthy and exercise regularly. Stay current with doctor visits and any important prescriptions. Consider using brain games and puzzles to stay mentally sharp. An investment in your health is also an investment in your career and your financial well-being.
Invest in your skills and knowledge.
Don’t put your career on autopilot just because you’re nearing retirement. The world is changing quickly. Technology, globalization and other forces have transformed many businesses and industries. You can never predict when an employer may decide to undertake a major restructuring that eliminates jobs. If you are laid off or restructured out of a job, you could have difficult finding a new role. You may have no choice but to retire early.
Limit your risk of job loss by investing in yourself. Take classes or training that will increase your knowledge. Volunteer to take on difficult projects at work. Make yourself so valuable that your employer will be resistant to eliminating your position before you’re ready to retire.
Protect yourself and your spouse from long-term care risk.
If you’re married, it’s important to remember that your spouse’s health needs could impact your career just as much as your own medical issues. One big potential risk the need for long-term care. The U.S. Department of Health and Human Services estimates that 70 percent of all seniors will need long-term care at some point.3
Consider what would happen if your spouse needed it while you’re still working. Would you have to end your career prematurely to care for him or her? Could you afford to hire caretakers out of pocket? If not, think about purchasing long-term care insurance, which could help cover some or all of the cost.
Ready to plan your extended career? Let’s talk about it. Contact us today at Focus Financial Group. We welcome the opportunity to help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.
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John Stover is a Registered Representative of and offers securities through TCM Securities, Inc. members FINRA & SIPC
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