Most people might frown on the idea of retiring on their 70th birthday. Here we’ll take a closer look at the pros of working until the age of 70.
According to a study, working longer can potentially increase your lifespan. It also stated that putting off retirement for even just a year could reduce the risk of dying by 11% after one turns 65. This doesn’t mean that working from 9 to 5 till age 70 means living forever, but it can add on some years to your golden years.
If you want to add some money to your retirement fund then working those extra years will be a smart move. For example, if you have a 401(k) and you keep working till you are 70 you can keep making contributions up until the annual limit.
Some people might be thinking that there will be an automatic increase in the FRA once they hit it if they begin drawing their social security benefits at the age of 62 and retire. Unfortunately, this isn’t the case at all. Particularly in this low rate environment going on today, it would be wise to think of the time between 62 and 70 years as a period for investments. The real question, in this case, would be whether it is wise to take social security retirement benefit at any time earlier than when you hit 70.
Seeing as the unused leave got stacked up on to your years of service, which is good because it increases what you stand to benefit. If you are currently at the point where per pay period you are earning eight hours of annual leave you can also possibly save up the 280-hour maximum amount of annual leave you’ve earned in the last year of employment. It is also possible to carry into the last year you plan on work over 240 hours of annual leave. Pay that is worth roughly five and a half pay periods is generated by these hours.
Retirement can be a scary transition, fear of the unknown quickly settles in. After you’ve retired, you are already committed, and if you change your mind in the midst it and want to get back into the workforce, it will be hard to find another job that pays nearly as well. In a nutshell, retirement comes down to having a strong dose of self-discipline, simply knowing how to discern what you should logically do versus what you want to do emotionally.