Are you considering working longer to bolster your retirement savings? It’s a common strategy among Americans who feel they haven’t saved enough to live comfortably in their golden years. However, this plan may not be as foolproof as it seems. In fact, retirement experts warn that relying on working longer as a safety net may backfire.
According to a recent CNBC and SurveyMonkey survey, around 27% of workers plan to work in retirement to supplement their income. While working longer can help shore up your nest egg, unexpected health issues or layoffs could derail your plans of working well into your late 60s or 70s. This is why it’s crucial to have a solid financial strategy in place to ensure your retirement savings can withstand any unforeseen circumstances.
Interestingly, many Americans end up retiring earlier than planned, with 35% leaving the workforce due to hardships like health problems or disability. Another 31% retire because of changes at their company, such as a layoff. This highlights the importance of having a backup plan and not relying solely on the idea of working longer to secure your financial future.
However, there are clear benefits to working longer if you’re able to do so. Delaying retirement allows you to keep your savings intact for longer, potentially allowing it to grow through investments and additional contributions. You can also delay claiming Social Security benefits, which can increase the amount you receive in the long run.
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