Waiting to retire. Why more Americans are delaying retirement.

Did you know that per a 2016 study by Towers Watson, forty-six percent of US employees over 50 now say they plan to work longer than they once expected¹? And according to a Gallup poll from 2014, working Americans expect to retire at age 66, up from 63 in 2002² (Source: USNews.com).

There are many reasons why individuals are choosing to work longer. Some reasons include the rising cost of healthcare and health insurance, being in debt, or not having enough saved.

Even though some people can’t wait to move on to greener pastures, there are potentially many social and economic benefits to be gained by delaying your retirement – even by just a few years. The following are several benefits that may be realized by waiting to retire.

1. 1. A few more years of employment equals an opportunity to put more money away. This might be the best time to save more. Why? Your kids have likely flown the nest and are now financially independent and you’re also making more now than you did at the beginning and middle of your career. This gives you an opportunity to save or invest more than in previous years.
   2. If you are over age 50, you can put more into your tax deferred retirement accounts. In fact, according to USNews.com in 2014, you can delay paying taxes on an extra $5,500 in a 401(k) and an extra $1,000 in an IRA than younger workers³.
   3. You may save on health insurance. You can’t start collecting Medicare until you are 65. Many Americans won’t even think about retiring until then, due to the high cost of medical care. Many Americans are keeping their full-time jobs, at least in part, to keep health insurance or taking part-time jobs with benefits.
   4. You get more out of work than money. For many of us, the people at work are like family. Working together and problem solving together can boost your mood, give you energy and a sense of purpose.
   5. Boost Social Security payouts. Between the ages of 62 and 70, your Social Security payments will increase for each year you delay signing up. Check out this calculator from AARP to determine your benefit.

Should you postpone your retirement?

Only you can decide what is best for you and for your family. But you should also have a firm grasp on your financial situation to determine the best year to retire. Your financial professional can help you customize a plan — whether you’re in your 30s or you’re approaching 60. If you don’t know if you’re on track, you can schedule a no obligation consultation with an advisor at The BlackOak Group today. We look forward to meeting with you.

^{This material has been reviewed for consistency with applicable regulatory and company standards. Any factual statements in the material, including, but not limited to, any performance numbers, statistics, policy numbers and dates, etc., have not themselves been verified. The reviewer offers no comment as to their accuracy or completeness. The author, by submission of this material to the reviewer, attests to the accuracy of the information contained therein.
This article was originally approved for use in December 2016 as AGE 120937 and certain information presented may have changed. For more current information please contact a member of The Black Oak Group.}

Sources:

^{1. Rafter, Michelle V. (2016).10 Reasons People Postpone Retirement. Retrieved from http://archive.boston.com/business/personalfinance/livinglonger/gallery/10_reason_people_postpone_retirement/↩}

^{2. Brandon, Emily. (2011, July 18) 10 Reasons to Delay Retirement. Retrieved from http://money.usnews.com/money/retirement/articles/2011/07/18/10-reasons-to-delay-retirement↩}

^{3. Brandon, Emily. (2014, May 12) Retrieved from http://money.usnews.com/money/retirement/articles/2014/05/12/the-ideal-retirement-age-and-why-you-wont-retire-then↩}