By Jordan Dechtman, Wealth Management
10/29/2010 The number of retirees feeling “very confident” that they have sufficient assets to maintain their lifestyle in retirement has dropped by approximately 50 percent in the past two years, from 41 percent to 20 percent, according to the 2009 Retirement Confidence survey from the Employee Benefit Research Institute. Declines in portfolio values and increased life spans have made longevity risk a top concern for Americans nearing or already in retirement.
With life spans lasting longer, the working years before retirement may need to last longer as well. Working longer not only results in the ability to save more, but it increases the number of years (and presumably higher paying years) upon which your Social Security benefits are based. If, instead of applying for Social Security at the earliest age of 62, you wait until age 65, you will receive 25 percent more in benefits. If you don’t apply until age 70, you more than double the benefit versus age 62. For more information and a benefit calculator, visit http://www.socialsecurity.gov/retire2/agereduction.htm.
In addition, if you participate in an employee pension plan or a 401(k) plan with an employer match, working a few more years increases your employer’s contribution to your retirement kitty. And since Medicare isn’t available until age 65, retiring at that age or later eliminates the need for higher-cost individual health insurance in between.
Beyond the financial reasons, research indicates retiring later may carry health benefits as well. A study published in the International Journal of Geriatric Psychiatry in May 2009 showed that each extra year of work correlated to a six-week delay in the onset of dementia. The September 2009 issue of the Psychological Science in the Public Interest reported on research that found four factors that could delay cognitive decline: mental engagement, social involvement, certain personality traits and physical fitness. Work may encourage one or more of those factors.
Early retirement became a common goal and something of a status symbol with boomers. But working a few more years can help ensure you retain that retirement status, instead of taking a low-paying job to make ends meet. Call your personal financial advisor, Jordan at 303-741-9772, email him at Jordan@JordanDechtman.com or visit our website at www.JordanDechtman.com for a full discussion of how delaying retirement in the short term can pay off in the long term.
About Jordan Dechtman Wealth Management. Jordan Dechtman Wealth Management is an independent Colorado financial services firm, serving clients since 1984. Jordan Dechtman Wealth Management helps you plan, predict, protect, your future one day at a time.
To learn more about the Jordan Dechtman Wealth Management difference, please contact Jordan Dechtman Wealth Management at 303.741.9772 or www.JordanDechtman.com.
Member: FINRA-SIPC
Phone: 303.741.9772
6025 S Quebec Street, Suite 170
Centennial, CO 80111
PR Contact: Jordan Dechtman
Jordan@JordanDechtman.com
www.JordanDechtman.com
Jordan Dechtman, Wealth Management
A strong relationship with a competent, caring and thorough independent investment advisor is the best way for you achieve your most important financial goals. At the same time, you want the convenience and comfort of world-class client service. Jordan Dechtman Wealth Management structures its busin…
Year-End Is The Time To Review Risk
Heirs Can Be Ill-Prepared to Receive an Inheritance
No Cost of Living Adjustment For Social Security Recipients in 2011
Time To Prepare Your Tax Planning Strategies
Your Life Insurance Needs Will Change
Health Care Costs: Estimating Your Financial Need During Retirement
Managing The Flow Of Your Retirement Funds
Your 401(k): Don’t Be Tempted to Borrow From Your Future
Talk With Your Financial Planning Coach About Your Goals For The Second Half of 2010