3 Reasons You May Want to Put Retirement Off 1 More Year
Key Points
Waiting to retire could be wise if you're not sure you have enough savings.
You need a withdrawal strategy to ensure your savings last the rest of your life.
Retirement may not be the right move if you're worried you'll be bored or isolated.
- The $23,760 Social Security bonus most retirees completely overlook ›
You had planned to leave the workforce in 2026. You may have even chosen a specific date. But now that date's rapidly approaching, and you're less certain that retirement is the right move.
This is a sign that it's worth reviewing your plans to make sure you're actually ready. If any of the following three things apply to you, you may be better off waiting until 2027 to quit your job.
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1. You aren't sure you'll have enough money to cover your costs
It may not be what you want, but it's often better to work a bit longer than to leave the workforce when you're worried about not having enough money in retirement. You'll give yourself additional time to save, and the savings you already have will get more time to grow.
This is a better approach than planning to return to work if you later realize you're draining your savings faster than expected. Older adults are more likely to experience health challenges, and sometimes they wind up caregiving for others, so you can't be sure returning to work will be an option for you in the future.
2. You don't have a withdrawal strategy
Even if you have adequate savings, you need a retirement withdrawal strategy that will help your savings last the rest of your life. This is especially important if you have a family history of longevity, and it can be especially challenging in times like these with rising inflation.
You don't want to sell too many of your assets right away, or you could risk running out of money prematurely. It's best to remain in the workforce at least until you've come up with a plan for how you'll make your money last.
3. You're worried you'll get bored
Without work, some seniors may feel bored or isolated. You may avoid this if you have family or friends nearby, or if you're considering getting involved in community activities. But if you need a sense of purpose or a lot of social interaction, retirement might not be your best option.
You might choose to quit your current job and find another job that's more in line with your interests. Or you could drop to part-time hours at your current job so you have more time for hobbies.
You can always transition to a full retirement down the road if you decide that's what you want. But if you think you might want to keep some ties to your job, it's better to scale back your time gradually. If you retire fully and then change your mind, you may have difficulty finding new employment when you want it.
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