Working Longer Has Its Benefits
By Jordan Dechtman, Wealth Management
· 2010-10-29T15:45:13.000Z
The number of retirees feeling “very confident” that they have sufficient assets to maintain their lifestyle in retirement has dropped by approximately 50 percent in the past two years, from 41 percent to 20 percent, according to the 2009 Retirement Confidence survey from the Employee Benefit Research Institute. Declines in portfolio values and increased life spans have made longevity risk a top concern for Americans nearing or already in retirement. With life spans lasting longer, the working years before retirement may need to last longer as well. Working longer not only results in the ability to save more, but it increases the number of years (and presumably higher paying years) upon which your Social Security benefits are based. If, instead of applying for Social Security at the earliest age of 62, you wait until age 65, you will receive 25 percent more in benefits. If you don’t apply until age 70, you more than double the benefit versus age 62. For more information and a benefit calculator, visit http://www.socialsecurity.gov/retire2/agereduction.htm . In addition, if you participate in an employee pension plan or a 401(k) plan with an employer match, working a few more years increases your employer’s contribution to your retirement kitty. And since Medicare isn’t available until age 65, retiring at that age or later eliminates the need for higher-cost individual health insurance in between. Beyond the financial reasons, research indicates retiring later may carry health benefits as well. A study published in the International Journal of Geriatric Psychiatry in May 2009 showed that each extra year of work correlated to a six-week delay in the onset of dementia. The September 2009 issue of the Psychological Science in the Public Interest reported on research that found four factors that could delay cognitive decline: mental engagement, social involvement, certain personality traits and physical fitness. Work may encourage one or more of those factors. Early retirement became a common goal and something of a status symbol with boomers. But working a few more years can help ensure you retain that retirement status, instead of taking a low-paying job to make ends meet. Call your personal financial advisor, Jordan at 303-741-9772, email him at Jordan@JordanDechtman.com or visit our website at www.JordanDechtman.com for a full discussion of how delaying retirement in the short term can pay off in the long term. About Jordan Dechtman Wealth Management. Jordan Dechtman Wealth Management is an independent Colorado financial services firm, serving clients since 1984. Jordan Dechtman Wealth Management helps you plan, predict, protect, your future one day at a time. To learn more about the Jordan Dechtman Wealth Management difference, please contact Jordan Dechtman Wealth Management at 303.741.9772 or www.JordanDechtman.com . Member: FINRA-SIPC Phone: 303.741.9772 6025 S Quebec Street, Suite 170 Centennial, CO 80111 PR Contact: Jordan Dechtman Jordan@JordanDechtman.com www.JordanDechtman.com
About This Author
Jordan Dechtman, Wealth Management
Centennial, Minnesota, United States
A strong relationship with a competent, caring and thorough independent investment advisor is the best way for you achieve your most important financial goals. At the same time, you want the convenience and comfort of world-class client service. Jordan Dechtman Wealth Management structures its busin…
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