“63% of Americans fear they will go broke after retirement, for very reason that expenditures are increasing while savings deplete,” according to a survey by Oregon State University. By the time most citizens reach 35, they are already preparing for retirement by sacrificing vacations, working longer hours, and adapting to a strict saving pattern. Despite this, 40% of workers do not see themselves leaving work by age 70 as reported by CareerBuilder. Due to this trend, employers are forced to amend their hiring requirements as they anticipate reaping big from the perfected skills of older workers. But what would you, as an American employee, gain by working past the age of 70?
Social security benefits
“If you look to make the most of your social security benefits, just work longer,” said Maury Blackman, CEO of Premise Data. By working after retirement, you raise your benefits by 8% for every year you defer your security until age 70. If, for instance, you are set to retire at 65 but lengthen your time at work by 5 years, you will have increased the benefits by 40% of what you would have received at age 65. Furthermore, if you start receiving checks at 65 and continue working, your profits can still rise though at a lower rate. Oppositely, retiring before the official age will bring your social benefits down by 7% over the first 3 years, and 5% thereafter.
Health benefits and killing boredom
Working past the age of 65 can prolong your life incredibly, according to an OSU study, who also warned that retiring early might increase the chance of early death. Besides reducing the risk of contracting physical illnesses, working at old age makes you psychologically and mentally upright. This is because work challenges your brain and keeps you occupied and alert. Similarly, if you retire alongside your partner or close friends, it would be time to enjoy the silver lining of life finally. On the other hand, your social life could turn out to be boring and unbearable if you cease working alone, prompting you to go back to work.
“I know a senior in Florida who was a commercial banker but after retiring, started his own business riding friends to the airport,” said Mark Lichtenfeld, the author of ‘You Don’t Have to Drive an Uber In Retirement.’ While you don’t have to do an overly involving job, working after retirement grants you a sense of connection to the society, prolonged purpose and not to forget, a better financial life. However, it is vital to plan for retirement such that you won’t have to work if old age ailments catch up. For sure, you should not stamp it as retirement but a transition to a new chapter of life.