Your Retirement Conversations
Talking to yourself lately? Do these conversations revolve around retirement? You want to retire. You need to retire. You’ve put in the time and you’re at the right age to retire but can you?
Working 40 or more years and deserving retirement does not guarantee that you can afford it. Due to unforseen circumstances you may need to work a bit longer than you expected. That’s okay; working longer may be in your best financial interest.
Advantages Of Working Past Retirement Age
#1 – Making Up For Past Decisions
Due to miscalculations you cannot afford retirement yet. You thought you had invested enough into your retirement plans during your working years. After using a retirement calculator you come to find that you did not save enough money. By continuing to work you have the chance to build up your retirement investment accounts.
Accelerate The Process
You can accelerate that accumulation of retirement investment money by reducing your expenses. It’s never to late to change your spending habits.
- Downsize your home
- Move, find a cheaper part of the country to live in
- Buy a used car instead of a new one
- Go on more mini vacations; save the extravagant ones for every other year
- Use coupons
- Stick to a budget
- Rely on student loans for your children’s college expenses vs your check book
#2 – Play Catch-up From Market Slump
If your retirement investments have dropped dramatically in value it’s in your best interest to wait for the rebound. You will reduce the risk of running out of money during your retirement if you hold off retirement until your investments recover.
In the meantime by living on earned income you delay dipping into your retirement investments. Keeping retirement accounts intact for as long as possible will allow those investments a chance to rebound in value.
#3 – Your Chance To Eliminate Debt
You’ve always carried a few credit card balances, a mortgage and a car payment. Even with that debt you never had a problem managing your finances. So why would debt be an issue during retirement?
Red flag, red flag. If you are going to enter retirement in debt you are asking for trouble.
When your pay checks stop at retirement your only source of income will be your retirement investments and maybe some social security benefits. That retirement income has to last for the rest of your life. If that money has to pay for your lifestyle and last as long as you do you may just run out of money.
#4 – Keep Your Money|Use Their Money
The cost of health insurance, life insurance, disability and long-term care insurance can be a heavy financial burden. Reduce your out-of-pocket costs for insurance by getting those benefits at your work place. By saving money on insurance costs you can budge that money to spend somewhere else.
Decisions, Decisions, Decisions
Should you stay or should you go? Should you retire or continue to work? You need retirement and deserve it. Before making your final decision just make sure you can afford it on your terms.