Going, going, gone are the days when we are forced into retirement because we hit a certain age. And boomers are redefining what that "R" word means to them. Retirement isn't about hitting a certain age or completely quitting what you have been doing. It may involve work, albeit perhaps on different terms or in a different field. It may mean adjusting that planned retirement date. There’s no shame in that. Late savers especially may need to consider what a difference an extra year of work can make in their lives.
Let’s consider the positive impact an extra year of work can have on your retirement savings.
1. One more year of work means your earnings are paying for your expenses. Your savings don’t have to pay for them.
2. One more year of work means you may be able to defer those government pension benefits and get a higher income stream.
3. One more year of work means you can put away some more money into your savings and investment programs.
4. One more year of work means your savings have one more year to grow.
5. One more year of work means your savings need to last one less year.
Think about the compound effect of all of these factors on your sense of financial security, your concerns about outliving your money and your peace of mind. Consider tapping into the power of one more year of work and the multiplier effect this can have on the next set of phases in your life.
Sit down with an advisor specializing in retirement income planning who can work through the numbers and what they can mean to your future.