These days, it’s common to work beyond the normal retirement age of 65 or 67. Working longer means continuing a lifestyle you’ve come to enjoy as well as the paycheck which helps support that lifestyle. However, a paycheck isn’t always the only reason to keep working. Don’t forget about employer-sponsored benefits like insurance and continued contributions to retirement. Those perks can be worth hundreds or even thousands of dollars. So, before your co-workers plan your retirement farewell party, here are three reasons you may want to keep working longer.
Keep your health insurance
Health insurance through your employer can often be cheaper than Medicare and provide more comprehensive coverage. Also, not everything is covered under Medicare. So keeping health coverage through your employer for as long as possible is likely going to allow you to spend less money on medical needs. This health coverage is especially valuable if your spouse is under 65 and you are carrying them on your health plan.
Keep life and disability insurance
The importance of life and disability insurance can get overlooked. If you don’t have a life insurance policy outside of your employer, then obtaining coverage at a retirement age of 65 or 67 may not be cheap.
Also, as you age, you may have more physical disabilities. Keeping your disability insurance for as long as possible will help you financially if you were to suffer from an unexpected illness or injury.
Keep saving for (eventual) retirement
As long as you’re working, you will not have to withdraw money from your current employer-sponsored pension or 401(k) plan — regardless of your age. Plus, both you and your employer can continue contributing to your account. This way you’ll be able to stash away more savings for the day you do hit your preferred retirement age.
Retirement is all about getting to do the things you couldn’t do while working. Once retired, you’ll hopefully live the lifestyle you’ve been dreaming of — traveling, finding new hobbies, or spoiling the grandkids. But remember, there’s nothing wrong with taking a little longer to get there.
Article provided by Local Government Federal Credit Union.
The advice provided is for informational purposes only. Consult a financial advisor for additional guidance.