Good Lifestyle

Decide if you are ready to retire Put you at a crossroads - One that can affect the rest of the trajectory of your life. Although retirement cannot come early enough for some people, others note that retirement delay is delivered with advantages that are too important to ignore. Although all these advantages are not monetary, many are. Experts say that working longer can help you secure the retirement of your dreams and protect yourself from financial risks.

"One of the biggest risks that retirees will face is the risk of longevity - the risk of surviving our assets," said Melissa Murphy Pavone , CFP, CDFA, investment director for Oppenheimer & Co.

"With the progress of medicine and technology, people live longer. One in four men of 65 years of average health will live at 93 years. One in four women of 65 will live at 96 years. We need to plan a longer retirement period.

Do you consider retirement for yourself? Do not leave your day work before discovering what you hear yourself to win by you, even a little longer.

In relation: 6 ways to win a passive retirement income, finance experts say .

One of the main advantages of retirement delay is to increase savings and retirement funds, says Michael Collins , CFA, founder and CEO of Wincap Financial . "By working longer, individuals have more time to contribute to their retirement accounts and build a more important nest egg, ultimately providing them with more financial security in their golden years," he noted.

Pavone says that if starting earlier is better, it is never too late to start saving for retirement. "If your business has a retirement account, register. If not, open an individual retirement account or go. By maximizing your contributions to retirement, you create a solid financial basis for your future" , she shares.

If you are over 50, it recommends using catch -up contribution programs. "Not only will it increase retirement savings, but it could be tax advantageous," she explains. "If your business offers a business match, be sure to take advantage of it."

Late retirement will also allow your pension plan to grow if you have one. "Indeed, pensions are generally based on years of service and an average salary, which can both increase with additional years on the labor market," explains Collins.

Delay retirement also means delay the start of social security benefits . Although most people are eligible to submit a complaint at the age of 62, this will lead to a reduction in advantages that the expectation of the full retirement age (FRA). The advantages only increase if you wait longer than that.

"For each year beyond the total retirement age that an individual delays social security, his advantage increases by 8%, until the age of 70," explains Collins.

However, Pavone notes that deciding when taking social security is a personal decision. "There is no unique answer on how or when to activate social security retirement services," she said. "There are many factors to consider: the desired retirement age, the expected lifespan, lifestyle objectives, expected expenses, to name only a few."

In relation: Your retirement on a middle class income? Do not make these 9 errors, say the experts .

After your retirement, you will have to replace your current coverage by Medicare or buy private insurance.

"Many people rely on the health insurance sponsored by the employer for their medical needs," said Collins. "Delaying retirement, they can continue to receive this coverage and avoid the often high costs associated with private health insurance."

Doug Roll , founder of Carrefour financial group , note that continuous health care is not the only way of a longer career that can improve health results. "Research has shown that remaining engaged in labor can have positive effects on physical and mental health. Longer work can provide a sense of objective, social interaction and mental stimulation, which are beneficial for global retired well-being, "he said Better life.

Transition to a fixed retirement income can be a much simpler process if you have paid your debts in progress, such as mortgage loans, car loans or credit card debt. "This can reduce monthly spending and provide a safer financial situation," said Collins.

If you think you prefer not to retire as long as these debts are not approved, you can set financial objectives that will support more financial freedom during your senior years. For example, you can work to reimburse your mortgage faster or sell a vehicle that you no longer use as often to enter the retirement without debt or less heavily loaded. AE0FCC31AE342FD3A1346EBB1F342FCB

Before leaving your job, it is also important to consider the emotional implications of retirement.

"Retirement can be a major life change, and some people may have trouble adapting to suddenly have a lot of free time," said Collins. "Delaying retirement, individuals can continue to engage in mentally and socially stimulating activities thanks to their work, which can improve the well-being and the quality of global life."

He says that many people find a goal and a fulfillment in their work, therefore retirement allows them to extend this feeling of accomplishment and contribution to society. "It can also provide a feeling of structure and routine, which can be beneficial for mental and emotional health," adds Collins.

In relation: 10 things you should stop buying your retirement, finance experts say .

For people with traditional retirement accounts, delay retirement means delaying the start of the required minimum distributions (RMD) at 72, said Collin.

However, according to the Internal Rent Revenue Service (IRS), "Account owners in a workplace retirement plan (for example, 401 (K) or a profile sharing plan) can delay taking their RMDS until the year they take Their retirement, unless it is an owner of five percent of the company sponsoring the plan. "

"This can help minimize tax responsibilities and allow the retirement account to continue to grow," notes Collins.

Once you leave your career, it can be difficult to reintegrate the job market if you change your mind. Delaying your retirement, you can be absolutely sure that you are ready to make the transition according to your own conditions.

"The retirement delay gives individuals more time to consider their options and make a well -informed decision when he retired," explains Collins. "This can help ensure a more secure and fulfilling retirement."

Best Life offers the most recent financial information of the best experts and the latest news and research, but our content is not supposed to replace professional advice. Regarding the money you spend, save or invest, always consult your financial advisor directly.