Did you know the fastest growing age group in the U.S. workforce is workers over 65 years old?1 As a wealth advisor, I’ve had many conversations with clients who are approaching retirement and wondering if stepping away from work is the right move—or if continuing to work just a little longer might offer some important advantages.
While retirement is often seen as the finish line, it can also be a flexible milestone. There are meaningful financial benefits to extending your time in the workforce, even if only part-time or in a different role. Here are a few key reasons why it’s worth considering.
1. More Time = Bigger Social Security Checks
Delaying Social Security is one of the most effective ways to boost your retirement income. For each year you wait beyond full retirement age (up to age 70), your monthly benefit increases by about 8%. That’s a permanent, inflation-adjusted increase, making it one of the most reliable ways to enhance your income for life.
2. Longer Investment Growth, Less Drawdown
Working longer likely means you’re not tapping into your retirement accounts yet, which allows your investments more time to grow. Even a modest additional year or two of compounding can make a significant impact, especially when you're preserving capital instead of withdrawing from it.
3. Continued Access to Employer-Sponsored Healthcare
Health insurance remains a major expense for many retirees. Staying employed can extend your access to employer-sponsored healthcare, which may offer better coverage and lower premiums than individual or Medicare plans. For those under 65, this can be especially valuable.
4. Ongoing Contributions to Retirement Accounts
Remaining in the workforce means you can continue contributing to retirement plans like 401(k)s or IRAs. If your employer offers matching contributions, that’s added value. Even after age 70, current laws allow you to keep saving, potentially boosting your retirement readiness.
5. A Strategic Buffer Against Inflation and Longevity Risk
Today’s retirees are living longer, and inflation remains an ongoing concern. Extending your working years can help reduce the risk of outliving your savings, giving you greater flexibility and peace of mind as you plan for a retirement that could span 20 or 30 years.
Deciding when to retire is one of the most personal financial decisions you’ll make. While there’s no one-size-fits-all answer, staying in the workforce longer can offer real financial advantages and strengthen your overall retirement strategy.
If you’re weighing your options, it’s a good time to speak with a trusted financial advisor. A well-informed plan, tailored to your goals and circumstances, can help you make the most of these important years and set the stage for a more confident retirement.
1. Number of people 75 and older in the labor force is expected to grow 96.5 percent by 2030. (2021, November 4). Bureau of Labor Statistics. https://www.bls.gov/opub/ted/2021/number-of-people-75-and-older-in-the-labor-force-is-expected-to-grow-96-5-percent-by-2030.htm
The opinions and analyses expressed in this presentation are based on Curi RMB Capital, LLC’s (“Curi RMB Capital”) research and professional experience are expressed as of the date of this presentation. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future performance, nor is it intended to speak to any future time periods. Curi RMB Capital makes no warranty or representation, express or implied, nor does Curi RMB Capital accept any liability, with respect to the information and data set forth herein, and Curi RMB Capital specifically disclaims any duty to update any of the information and data contained in this presentation. The information and data in this presentation does not constitute legal, tax, accounting, investment or other professional advice.
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