Not everyone retires the
same way
– or at the same pace.
Provided by Taylor McClish
Are you in
a hurry to retire? Not everyone is rushing to that particular finish line. According to
the 2018 retirement survey from the Transamerica Center for Retirement Studies,
which gauges the outlook of American workers, 56% of those who describe
themselves as “fully retired” did so before age 65, while another 14% said
goodbye to the daily grind in the year they turned 65. But that still leaves a
significant number – 30% of respondents – working beyond age 65, with some even
indicating that they never “expect to stop working.”1
Are
financial needs shaping these responses? For some, though not everyone. Those who
retired after age 65 offered a wide range of responses. Forty-seven percent of
respondents indicated that they wanted to remain “active” or that they “enjoy
what [they] do.” But many indicated that they couldn’t afford to retire (24%),
needed to maintain health benefits (12%), or simply wanted to continue making
money (56%). That latter statistic may speak to a desire for more financial
independence, or a hope to spend a few extra years in the workforce, so they
can continue making contributions to retirement accounts.1
“Retirement”
and “work” are no longer mutually exclusive. Whatever your reasons for not retiring at
the earliest opportunity, the truth is that many people enjoy good health and
vitality well into their seventh decade (and beyond) and see no reason to speed
their way into that phase of their life.2
Social Security will eventually become a
factor, whether you retire in your sixties or wait until after you turn 70. We
are sometimes cautioned that working too much in retirement may result in our
Social Security benefits being taxed. Your benefits stop accumulating at that
age, as do delayed retirement credits. Delaying collecting benefits until age
70 does have one big plus: your monthly deposit will be 132% of the basic
monthly benefit.2
If you do want to make a gradual
retirement transition, what might help you do it? First of all, work on maintaining your health. The
second priority: maintain and enhance your
skill set, so that your prospects for employment in your sixties are not
reduced by separation from the latest technologies. Keep networking. Think
about Plan B: if you are unable to continue working in your chosen career, even
part time, what prospects might you have for creating income through financial
decisions, self-employment, or in other lines of work? How can you reduce your
monthly expenses?
Easing out of work & into retirement
may be the new normal. Pessimistic
analysts contend that many Americans will not be able to keep working past 65,
no matter their aspirations, and that 70 is out of the question. They may be
right, and many will not be able to meet that goal. That said, they may be
wrong – you are part of an active, ambitious generation that has changed the
world, so don’t be surprised if you also help change the definition of
retirement.3
Taylor McClish may be reached at (503) 239-3060 or Taylor.McClish@cunamutual.com
This material was prepared by MarketingPro, Inc., and does not
necessarily represent the views of the presenting party, nor their affiliates. This
information has been derived from sources believed to be accurate. The
publisher is not engaged in rendering legal, accounting or other professional
services. If assistance is needed, the reader is advised to engage the services
of a competent professional. This information should not be construed as
investment, tax or legal advice and may not be relied on for the purpose of
avoiding any Federal tax penalty.
Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.
Citations.
Citations.
1 - transamericacenter.org/docs/default-source/retirees-survey/tcrs2018_sr_retirees_survey_financially_faring.pdf
[12/18]
2 - thebalance.com/why-retire-at-70-2389048 [3/2/19]
3 - cnbc.com/2018/10/03/david-bach-disagrees-that-70-is-the-new-retirement-age.html [10/3/18]
2 - thebalance.com/why-retire-at-70-2389048 [3/2/19]
3 - cnbc.com/2018/10/03/david-bach-disagrees-that-70-is-the-new-retirement-age.html [10/3/18]