You may be thinking that you are one year closer to retirement. But, if you delay your retirement date, there may be some substantial benefits. Read on for some reasons to consider staying in the workforce for a while longer.
INVEST IN YOUR FUTURE: Benefits of Delaying Retirement
We are all looking forward to the day we can quit working and start a blissful retirement, but putting off the day you finally leave the workforce might be a wise consideration if you’ve underestimated the amount of money you’ll need to retire or if recent swings in the stock market have depleted your nest egg. Even if you have enough money, working longer than you originally anticipated might have some benefits of which you aren’t aware.
If you were born after 1937, the age at which you can start receiving full retirement benefits goes up according to the year you were born. If you delay claiming your benefits and continue to contribute to Social Security through work, however, the payments to which you’re entitled will increase. The longer you delay retirement, the more your Social Security payments will increase in the form of a delayed-retirement credit. This credit is added automatically from the time you reach full retirement age until the time you begin taking benefits or reach the age of 70, whichever comes first. People born after 1943 can receive an increase of as much as 8 percent for each year they delay retirement, not to mention the fact that for every year they continue to work, another year of benefits is added to their Social Security record. And because there is no longer a limit to the amount a person age 65 or older can earn without risking a reduction in Social Security, you might build on your benefit even more if your last years of working are among your top 35 most financially productive.
