Most people think of retirement as something that happens when you hit sixty five. But nowadays many people retire for different reasons and they could retire much earlier than sixty five. But before you start making plans, there are good reasons to wait until the magic number before officially hanging up your briefcase. In this article we highlight the benefits of retiring after sixty five, and there are quite a few!
In modern society most people will go through many jobs in their lifetime. But in the age of baby boomers, it was quite usual to have just one job and stay there for thirty years. Usually with a state or federal job you could retire after that because you should already be eligible to draw a pension.
Some companies offer incentive to those approaching retirement age, to tempt them to retire early. This is good for the companies as it lowers overheads and they can use the salary of an older more experienced worker to hire cheaper fresh graduates.
Many baby boomers are working past their usual thirty years with the government. They are benefits in their way of thinking.
Firstly, due to better medical care and technology, people are living long. Retirement used to last only ten or fifteen years, it is now lasting twenty to thirty years. This could only mean that the money you will need for everyday expenses after retirement will increase too. These expenses include medical care, housing considerations, and leisure activities.
Another important point is that you can only start to draw from your social security is sixty-two years of age. Even though this means that you could cut years off your working life. However, at the age of sixty-two you will not receive your full social security benefit. You get a statement from social security every year to tell you how much you will be getting at your retirement. This statement is only true if you continue to work until you retire at sixty six, when one hundred percent of the retirement benefit will be paid to you. Even those people who turn sixty-five this year will have to wait an additional ten months to receive a full benefit.
If you retire at sixty two you may only be able to receive seventy five percent from social security. And this will last for the entire time that you are retired. Only four more years of work means you will lose a quarter of the money that you would otherwise be getting.
But the bright side of this is that you can continue to part time for four years and still be eligible for full social security benefits when you turn sixty-six. This means you can continue to work those four extra years but you can't make over a certain amount of money. This sounds great if you've already saved for your retirement.
This article has highlighted an important benefit or working after sixty five, be it part-time or full time.
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