Reasons Not to Retire Just Yet

If you’re like most Americans, then you have probably spent a good chunk of your life looking forward to the day when you can finally retire- the day when you will no longer be forced to punch a time clock. And, if that day is fast approaching, you may be counting down how long you have to go before you can FINALLY retire.   

With that said, though, there are actually some pretty good reasons to prolong retirement for as long as possible, and while that may not be at the top of your wish list, you should at least consider these reasons and, if you find that retiring later will be beneficial to you, to put off retirement for at least a little while longer.

Reason #1: The Market is Performing Well

Right now, the market is performing relatively well. In fact, we’re in a great period that is known as a “market top,” and, while that might seem like the perfect time to retire, the opposite is actually true. People who retire when the market is doing well will often lose their money and savings more quickly due to higher inflation rates. Because the economy is performing well, in other words, things tend to cost more, and less interest is typically garnered from savings and other assets.

If you want to make the most of your money and not get the raw end of the deal, you’re better off waiting until a time- probably in the next two years or so- when the market isn’t performing quite as well and when inflation is lower and assets are garnering more.

Reason #2: You’ll Probably Get More Social Security Money

If you’re relying or heavily relying on social security income to get you through retirement, then that is all the more reason to retire later than you originally planned! See, most people can start getting their full retirement benefits when they turn 66 or 67, but, if you work beyond your retirement age, you can typically gain about 8% on your money for each additional year that you work.

While that might not seem like a huge increase, it can really add up over time, especially if you end up living a longer than average lifespan and thus having more time to collect on your money.

These are really just two of a great many benefits to working longer and retiring later. Only you, hopefully with the help of your financial adviser, can ultimately make the decision about whether or not a longer working life is for you, but you should, at the very least, talk with your adviser and consider the potential benefits of working longer before making the decision to retire.