Delaying Retirement Increases Wellness

Delaying retirement

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Health and Financial Benefits of Delaying Retirement

Retirement is a goal that everyone achieves in their own way, however, not everyone may be ready for retirement at age 65. While thinking about a retirement strategy, some may be eager to relax after many decades of working (no shame there!), but some may decide to continue working a job they enjoy after the traditional retirement age for many reasons. A study shows that about 52% of all workers in America plan to delay their retirement to continue working after turning 65, while 16% claimed that their plan is to never stop working.

Postponing Retirement for Financial Benefits

Many financial benefits may come from delaying retirement for a few years. One may be able to increase their retirement income and social security benefits the longer they decide to work. A study shows that delaying retirement by one year at age 66 can increase retirement income by 7.75%. Social Security benefits are based on the individual’s highest 35 years of earnings. If one decides to work for 3 more years, until they turn 68, with a higher income than in previous years, those additional 3 years of higher earnings may replace 3 years of lower earnings, greatly increasing their Social Security benefits. Social Security benefits may also increase by 6-7% annually if one works over the age of 65 and may increase to 8% each year until age 70— there are no incentives for claiming after age 70.

Improving Social and Mental Stability

Deciding to prolong retirement may increase mental stimulation and social engagement. By going to work, one can participate in social interactions with coworkers which may decrease signs of depression, isolation, and anxiety. Without a consistent work schedule, searching for a new routine or hobbies may bring anxiety to new retirees that may affect their health. Those who retire early may experience increased loneliness, depression, or feel socially isolated, which can lead to many health issues and lessen the quality of life.

An increase in mental stability may arise in those who continue to work versus those who retired at 65. Delaying retirement may increase cognitive benefits like mental sharpness, brain function, and memory— possibly decreasing the risk of dementia and Alzheimer’s. Delaying retirement may also decrease the likelihood of health conditions like diabetes, heart diseases, and high blood pressure by a third. Those who are newly retired may become less active, further affecting their mental and physical health. Staying active is necessary to decrease the risk of many heart complications and improve mobility functions. Those who decided to delay retirement a year after the traditional retirement age showed an 11% decrease in mortality by continuing to work and maintain their current routines.

Retirement Conclusions

Working over the traditional retirement age may bring better support to one’s health, social, mental, and financial stability. If a person’s health allows them to postpone retirement, they may experience a wide range of benefits, including living a longer and healthier life!

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About Brittany Herring

Born and raised in Houston, TX, Brittany made the move to Dallas, TX to expand her marketing career. As a 2019 business marketing graduate from Stephen F. Austin State University with a background in social media, Brittany joined Empower Brokerage in the summer of 2021 serving as a Marketing Specialist and RSD Liason.

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