Reasons to Continue Working Past Retirement Age

Studies reveal that the majority of Americans are not prepared for retirement when the time arrives.  Moreover, statistics are showing that longevity is increasing as some seniors are outliving their savings.  Rising food and health care costs as well as inflation rates are leaving retirees vulnerable to poverty unless they continue working past retirement.  Reasons to continue working past retirement age are: increased longevity and high costs associated with it, rising costs of food, increased health care costs, rising inflation costs, unexpected events in life and uncertain future of a social security fund. 

Below listed are some of the main reasons why you should continue working past retirement stage:

Increased longevity and high costs associated with it

Longevity is increasing and so are the costs associated with getting old.  On top of that, retirees are faced with rising food and health care costs. These costs can amount to a lot of money looking at a period of twenty years before you retire especially if you count in taxes and increasing inflation rates.

Rising costs of food

You’ve already notice the trend of rising food costs.  Now, think about how much the food may cost in twenty years when you retire counting in inflation rates.  For an average person about 20 dollars a day is required to get enough food to live on.  20 dollars a day for 20 years will equal about $146,000 dollars without adjustments for inflation.  If this is not a good reason for you to continue working past your retirement, then what is?

Increased health care costs

You will more likely than not incur increased health care costs when you retire as you will lose the health coverage.  Thus, you will have to purchase your own health coverage that will be even more costly when you get old.

Rising inflation costs

You are faced with increasing inflation rates due to a stagnating economy and a weakened dollar value.  As this trend is expected to rise people are increasingly relying on investments to save for retirement.  If your money does not grow faster than inflation, it loses its value.

Unexpected events in life

Life always has its way of bringing unexpected surprises when you least expect it.  What if you have a serious medical emergency past 70? 

Uncertain future of a social security fund

Due to economic recession, social security is no longer secure as it once was.   Its future is uncertain especially after 2041 unless some kind of a miracle happens.