Delaying Retirement
“Defer retirement,” advises Olivia Mitchell, executive director of the Pension Research Council. “Working longer generates two positives: Increased savings and improved social security.” It makes sense. The more you save, the more future income you get.
Before plunging it’s vital to analyze your finances. How much do you spend annually; how much WILL YOU spend the next 15 or 30 years? Compare anticipated expenses (including inflation) against anticipated income. If you defer social security payments by three years, your benefits increase over 23%. Presumably your retirement will also include assets generating reliable, long term income streams. The longer you defer taking this income, the more it grows through compounded interest.
Plan to live a carefree, healthy retirement. The risk: You might outlive your money. This is where advance planning plays a vital role. Will you be helping your children or burdening them? Will the state care for you at some point or will you sail off on an ice flow. There are strategies you need to develop before your mental acuity declines.
“Don’t give anyone control over your finances, except perhaps your children,” says the Michigan Retirement Research Center’s John Laitner . “If you don’t keep very close control, you may find your money’s not there anymore.” Laitner says legitimate charities may attempt to obtain the right to directly debit your bank accounts, while scammers may drain an account dry. “Seniors can be pressured into giving [personal and financial] information out,” Laitner says. He recommends that older Americans establish a durable power of attorney “…before one gets to the point where good decisions can’t be made.” While you can, appoint someone you trust to manage financial and legal matters on your behalf.
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