Retirement is something that most of us will want to look forward to and when we are approaching the time when we are about to retire, the thought of delaying it for a few more years for most of us will have very little appeal. However an increasing number of seniors are finding they have little choice in the matter because staying on at work past retirement age is unavoidable due to their own financial circumstances. Whilst this is not something that most individuals will enjoy doing, there are tangible benefits of working later on in life…
Lets start with the most obvious one; you will have more money when in retirement if you retire later. Working later helps you in two ways, firstly you are still earning money which means you can build up a larger pension fund. Secondly you are not drawing an income from this money whilst still in work, meaning that when you do eventually retire, you will have more to live off each year you’re in retirement. This is the primary reason why so many seniors are having to work later than they had planned. You can still enjoy some financial benefits even if you are still working, for example in the UK they offer free bus travel to anyone aged over 65. Also you can get enjoy discounts at a number of retail outlets who offer money off to seniors.
Working in general does help you to keep you healthy and active (despite how it may feel at the time). Of course, this varies from job to job but overall if you are getting up in the morning, commuting to work, conversing with colleagues and generally staying alert this will help you to keep active. Working ensures you have daily interaction which cannot always be guaranteed in retirement, especially if you live on your own.
If you work later you can increase the contributions being made to your pension fund. Not only will you have more money to retire with, you will also be able to get a higher income if you buy an annuity, which will increase in value the older you are.
You cannot be sure what will happen in the future. Once retired of course, it is very difficult to get back into the jobs market should you find you need additional income. The later you work, the more money you can save for any unexpected changes in your circumstances. Also remember that life expectancy is impossible to predict so you will not know in advance how long your retirement will last. Although the concept is not appealing, the truth is that working later gives you the best chance of being more financially secure in retirement.
This article came from Simon who writes for pension website Annuity City.