Working past retirement can be good for you.
An increasing number of senior American workers indicate that they would be working past their retirement age. According to the results of the 2014 survey conducted by Careerbuilder.com, 54% of American workers say that they would continue working after retiring from their current jobs. 81% of the people belonging to this group indicated that they would work part-time while the remaining 19% said they would still be working full-time.
It is interesting to note that the number of people who prefer to remain employed after retirement has been steadily increasing for the past two decades. Gone are the days when people collect their last paycheck at age 65. In today’s world, people simply phase out from one career to the next, and remain gainfully employed for a few more years after their 65th birthday.
The Benefits of Working Past Retirement
Aside from earning consistent income for at least a few more years, there are some other reasons why people now choose to work post-retirement. Here are some of them.
Staying longer on the job may mean a bigger pension. If your income is still increasing, staying on the job for a few more years may translate to a bigger pension since most plans are calculated based on pay and years of service. This means that the longer you keep on working, the higher your pension will be.
It can help you build a more comfortable nest egg. By working past retirement, you can keep contributing to your retirement accounts so that you will have a bigger savings when you finally decide to retire.
It may translate to a bigger Social Security benefit. If you don’t have any serious health problems, waiting until age 70 to collect your Social Security benefits makes a lot of sense. This is because your benefits will increase by at least 8% for every year you delay collecting them, until age 70.
You can enjoy employee benefits. By staying on the job, you will keep enjoying several benefits which includes employer-paid life and health insurance. This is huge since aside from being considerably cheaper than Medicare, the health coverage you get from being employed provides a better and more comprehensive coverage.
It can give you a sense of fulfillment. Some people believe that their work gives their lives a sense of purpose and direction. If you are one of these people, consider postponing your retirement until you have a solid plan on how you will spend your time after leaving the workforce.