When people think about retirement, they view turning 65 years old as the magic number. And I get it! Why wait a few more years if you can retire now? Surprisingly, there may be more reasons than you think. On this episode, I’m going to share with you five benefits of working past the age of 65, why these may be beneficial for you, and how to take advantage of them before it’s too late.

You will want to hear this episode if you are interested in...

• Working longer to keep saving towards retirement [1:20]
• Working longer to delay Social Security benefits [2:51] 
• Working longer to contribute to an HSA [5:22] 
• Working longer to cover your travel expenses [8:09] 
• Working longer to stay young [9:22]

Worth the wait

Many people have the mindset that they want to retire as soon as possible. However, there are plenty of good reasons to wait. For example, if someone worked until the age of 70, that’s going to shorten the amount of time they would need to live off their portfolio in retirement. Thus needing to save less than someone who retired earlier. It’s also a huge benefit if you got a late start in retirement planning. Staying in the workforce and retiring later can help you make up for lost time and save the money you’ll need for a successful retirement.

Another great reason to keep working is that it delays when you begin collecting Social Security benefits. You get an additional 8% credit per year for every year you wait until your full retirement at age 70. Meaning, if full retirement for you is age 67 and you wait until you turn 70, you would receive an additional 24% in benefits. Working longer also benefits people who earned a lower income at the beginning of their careers and are now in their peak wage-earning years. Replacing lower-income years with higher-income years can also increase your benefits.

Strike while the iron is hot

When planning for retirement, there are a handful of things that you can only do before retirement that will serve you well in retirement. One of those things is contributing to a Health Savings Account (HSA). I LOVE these things because they are currently the only triple tax-free investment account available. Triple tax-free means that you receive a deduction on your contributions, the money grows tax-deferred, and when you take it out and use it for health-related costs it’s 100% tax-free to you. You would likely be able to take advantage of this because many employers are switching to high deductible health plans. However, once you enroll in Medicare, you are no longer eligible for an HSA account. Staying employed allows you to continue making contributions to an HSA that will serve as a tax-free medical fund in retirement.

Additionally, most people wait until after they retire to take their dream vacation. While the sentiment makes sense, it could be more beneficial to take that trip while you’re still working. If you can pay for your travel while you’re still receiving a paycheck, it will be less of a hit on your finances in retirement. You also have the added benefit of using paid time off if you have it available. For more information on working past the age of 65, listen to this episode!

Resources Mentioned

• 6 Ways Seniors Can Stay Young And Active After 60 (Article) 

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