Are you counting down the minutes until retirement? You probably can’t wait to retire. But, like most people, you might feel worried about your retirement income. Will you have enough money to retire comfortably? What about inflation? What if an emergency happens? These questions might be keeping you up at night.
Those are common concerns, and of course no one can predict the future. But we can anticipate bumps in the road, and prepare ourselves for whatever might come our way.
One very simple answer to these concerns is to keep working about five years longer than you had originally planned. This will give you more time to prepare for any surprises in your retirement years, and build a more generous retirement income. Consider the following benefits to postponing your retirement:
- You can make five more years’ worth of contributions to your 401k or IRA.
- You can also make catch-up contributions each year, since you’re over age 50 by this point.
- Aside from all of the extra contributions, your money will also grow for five more years. When you consider the power of compounding interest, that’s quite a chunk of change you’ll be earning!
- You’re most likely at the height of your career right now. You’re earning more than ever before, so you have more money to pay down debts and could possibly retire free of financial obligations.
- While no one likes to think about it, your retirement years do have an end point. Postponing your retirement by a five years means that you will live on your retirement savings for five years less. You’re less likely to outlive your money, and you can enjoy a higher standard of living in the meantime.
If you can’t delay your retirement by five years, you can still enjoy the above benefits (although to a lesser degree) if you postpone by only a year or two. The point is that right now, at the height of your career, you have more power than ever to work toward a healthier, happier retirement. Call us for a consultation, and we can help you identify your biggest retirement challenges and create solutions to address them.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.