Some people eagerly look forward to retiring early. After a long, full life spent looking after the needs of your family and clocking in for work every single day, the prospect of having time to spend however you wish is highly appealing. You will finally be able to let your day flow without having to follow a rigid schedule, or indulge in hobbies or activities that you never had the time or money for during your younger years, or simply spend some quality time with yourself or with your spouse.
However, there are also some individuals who aren’t impatient to begin their retirement period as soon as possible. For these individuals, waiting until they turn 70 years old before they stop working and start their retired life is much more financially logical.
Curious about why this may be a better idea if you want to ensure your financial security during retirement? Here are four reasons why you should alter your retirement planning strategy and wait until 70 to retire:
You can keep your mind actively functioning, and therefore sharper for work. Some elderly individuals fall into a state of depression during their retirement years because being out of work makes them feel useless and unable to contribute to a common goal. Older individuals who remain occupied with work during their later years keep their minds sufficiently fresh and functioning, helping them perform well at their job.
You won’t have difficulties finding part-time employment. Retiring and then looking for a part-time job (often outside of the industry they have long worked in and with a lower salary) to generate a supplemental income is part of many elderly individuals’ plan, but this can easily backfire for them. There is no guarantee that you will find work that fits your skillset, experience, and current capabilities. Rather than risk losing your income-generating job, you can choose to stay on and take advantage of the opportunity to save more for your retirement.
You can maximize your employer’s health insurance plan. If you enter your advanced years healthy as an ox, good for you — but you will still need to cover the costs of staying in good health. For elderly people with medical issues, however, health expenses can skyrocket. If you continue to work until you are 70, you can enjoy the benefits of your company health insurance plan for a few more years, effectively taking care of your health at a much lower cost.
Lastly, you can enjoy more Social Security benefits. When you reach full retirement age, you will be able to get all the benefits you deserve rather than just a percentage of the total if you were to choose to retire earlier. Bigger checks mean more money that you can use to finally enjoy your well-deserved retirement period after 70.