In the past, retirement has been portrayed as an ending, a grand exit from your years in the workplace. But the rules are shifting. Labor force participation among those aged 65-74 is predicted to reach 32 percent by 2022, up from just 20 percent in 2002.1 As the Baby Boomer generation ages, more people are viewing retirement as an opportunity to enjoy the rewards of work in a whole new way. If you’re considering working in retirement, here are a few reasons why it could be beneficial.
Reason #1: Improve Your Mental Health
Doing things like learning a new skill can help maintain mental agility. Working, especially in a new job, is a great way to continue learning and improving your skill set. Staying engaged in work helps to build your “mental muscle.” This is an effective way to reduce the risk of developing dementia or Alzheimers as well as ward off signs of aging.
Reason #2: Maintain Physical Health
Staying active during retirement years is crucial for continued health. Whether you choose to work full time or volunteer a few days a week, engaging in some form of work will keep your body moving. This can give you opportunities to stay balanced, strong, and healthy.
Reason #3: Continued Income & Delayed Social Security Benefits
The longer you work, the longer you receive a steady paycheck. This, of course, can help boost financial stability and grow your savings. But in addition, working during retirement may afford you the ability to delay receiving Social Security benefits.
Social Security benefits become accessible at age 62, but full retirement benefits will only be available once an individual reaches their full retirement age, which is determined by their birth date. Any benefits received before reaching your full retirement age are reduced by a percentage, also determined by birth date, ranging between 25 and 30 percent.2
Depending on your circumstances, working into retirement may mean being able to delay benefits until your full retirement age. If you want to maximize your benefits, you can receive an increase in retirement benefits by a certain percentage each year you delay until the age of 70. This bonus percentage is determined by how long beyond your full retirement age you wait to begin receiving benefits, and the increase is permanent.
Reason #4: Sense of Purpose
Studies have shown that a sense of purpose has been found to lengthen lifespan and quality of life.3 Working on something you care about, starting a new business or mentoring others in the workplace can ward off depression and provide a healthy sense of fulfillment and direction in your later years.
Reason #5: Avoid Isolation
One of the risks associated with retirement is increased isolation, which in terms of its impact on your health, has been equated with smoking nearly a pack of cigarettes a day.4 Working with others reduces this risk, giving you a chance to build connections and enjoy meaningful interactions.
There are plenty of considerations to make before rejoining the workforce in retirement. When deciding if this is the right move for you, keep these important benefits in mind. If you'd like a financial professional to help you determine the right time to begin receiving Social Security benefits feel free to...
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as investment, tax, or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Digital assets and cryptocurrencies are highly volatile and could present an increased risk to an investors portfolio. The future of digital assets and cryptocurrencies is uncertain and highly speculative and should be considered only by investors willing and able to take on the risk and potentially endure substantial loss. Nothing in this content is to be considered advice to purchase or invest in digital assets or cryptocurrencies.
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