Continuing to work during retirement can have a number of financial benefits for the retiree. With the extra income that’s coming in, life may be just a little less stressful. The need to stretch that dollar even further in this tough economy we are currently living in will be lessened somewhat if the retired individual is able to continue to produce an income. There are a number of financial possibilities and benefits to take into consideration when deciding if now is the right time to retire or should you keep on working for a longer period of time as long as you are able to.
Retain existing savings
Allowing your savings to stay put and continue to accumulate interest while you live off the income from your job is something to consider. The longer those savings aren’t being used, the bigger the pay back will be in the end.
If you keep on working during those retirement years, you could possibly be able to afford some of life’s little extras. Doing some more traveling or purchasing that new boat or luxury vehicle you’ve always dreamed of owning could now become a reality instead of a dream.
Larger social security payments
The longer you hold off drawing that monthly social security check, the bigger the payment will be. Working past full retirement age allows you to claim the full retirement benefits you’re entitled too, no matter how much extra income you have coming in.
Insufficient retirement income
Perhaps you don’t have enough retirement income coming in to live on. Weather your investments were hurt by the shaky economy or you just didn’t put enough away for those retirement years, continuing to work can help that financial situation out. It may not be what you had planned, but life is full of uncertainties as many individuals are well aware of.
Catastrophic disasters, illness, inflation or long-term care are just a few of the many things that you didn’t count on, but suddenly you’re faced with. Having a job with an income will help ease the burden of these unplanned expenses.
Prepaying a mortgage
A number of retirees could still paying on a home mortgage. Working past retirement is a financial benefit that could help you add a bit more to your monthly payment each month and help shorten the life of that existing mortgage. Adding just $10 or $20 extra each month to that mortgage could save you thousands of dollars of interest over an extended period of time.
That extra retirement income that you having coming in could be just “stashed away for a rainy day” if you don’t need it for anything else.
Whatever the reason you may decide to continue to work during those retirement years, the financial benefits of doing it will definitely be rewarding.