Tips for Retiring Later than You Think

Paul Miller |

After decades of working the average 9-to-5 job and trying to save for the future, most Americans look forward to a relaxing retirement in which they pursue their beloved hobbies and have a modest income. If retirement continues to elude you, or you enjoy your job and aren't ready for retirement, there are a few tips that can help you retire at a later point in life than you were originally thinking.

Take Advantage to Remain Active

Believe it or not, many of the health problems that some retirees experience are the result of a more sedentary lifestyle. When you no longer have a job to show up to each day, it's easier to enjoy slower mornings where you lounge on the couch reading the paper. However, if you're still a member of the workforce, you get up at a reasonable time each day and get moving. You stay active throughout the day walking around the office, going up and down stairs, just accomplishing daily tasks.

You can also find ways to make your continued employment a little more enjoyable by focusing on the positives. For starters, you will still earn money and contribute to your retirement fund. On top of that, you benefit from personal relationships you have with people in the office. Retirement means, in large part, an end to many of those relationships. Staying employed means you still see those people, and you get a good chance to remain mentally and socially engaged.

Focus on Wealth Accumulation

As alluded to above, your continued presence in the workforce gives you more time to accumulate wealth that can support you when you do decide to retire. For starters, when you receive a raise, put that money toward paying off debts or contribute to your retirement funds (401k, IRA, Roth, etc.). This will boost your financial security in the future, when you really need it.

You can double this effort by withholding more from your paycheck each year to put into your retirement accounts, or even paying a little extra each month on regular debt payments to pay down your accounts a little sooner than planned.

View Income as Spigots

Ideally, you're retirement fund will have multiple sources contributing to it. By this we mean, you'll have Social Security, private retirement accounts, and maybe even a pension contributing to your overall income during retirement. Decide which of these should be used at which point in time to meet your financial needs during retirement.

Focus on Needs, not Wants

Just because you can afford a brand-new car now or a bigger house, doesn't mean you need to have those things. If you save your money by sticking with the paid-off vehicle and living in a modest home, you'll have more money to enjoy your life during retirement. Additionally, continuing to save throughout your life ensures that your money lasts longer.

Consider an Annuity or Managed Retirement Account

If you want to provide yourself with a safety net, consider using a portion of your retirement savings to establish an income/variable annuity with a guaranteed lifetime withdrawal benefit. This helps you find a balance between the need for guaranteed income and your goal of not over insuring for the future. But be careful of how that benefit may work. These benefit riders, while guaranteed by the Insurance Company, are not usually protected against inflation, so the income may be insufficient in later years. Creditworthiness of the insurance company and complexity of the contracts are additional concerns; as well as having ongoing advice and management of these products.

Well managed “Investment Accounts” utilizing income objectives and multiple strategist accounts, also work very well to accomplish your goals with some potential for growth and full access to the funds. There are different approaches to retirement income needs.

Retiring later than you think you will, can be a blessing in disguise. Although you have looked forward to retirement, consider working while you can, as the benefits sometime outweigh the downfalls. Staying active longer keeps you healthier, and also adds to your nest egg, which will prove a positive for you in your retirement. Whatever age you plan to retire, the best thing to do is to be prepared for whatever happens that may change that plan. For help developing a strategy for these changes contact Paul Miller, CFP® at Indian River Financial Group today!