As retirement approaches, many people start to think about their financial future. For those who haven’t saved enough or want to continue working beyond a traditional retirement age, there are strategies that can help.
One option is to delay Social Security benefits. While individuals can begin receiving benefits as early as age 62, waiting until full retirement age (typically between 66 and 67 depending on birth year) will result in higher monthly payments. Waiting until age 70 can maximize the benefit amount even further.
Another strategy is to work part-time during retirement. This not only provides additional income but also allows retirees to ease into a new lifestyle while maintaining social connections and mental stimulation.
For those with significant assets in tax-deferred accounts like IRAs or 401(k)s, delaying withdrawals until the required minimum distribution age of 72 (previously 70½ before recent legislation changes) can help minimize taxes and allow for continued growth of the funds.
Additionally, downsizing housing or relocating to an area with lower living costs may free up funds for future expenses or travel plans.
It’s important for individuals considering delayed retirement strategies to consult with a financial advisor and assess their unique situation. Factors such as health, family obligations and personal goals should be taken into account when making decisions about retirement planning.
Ultimately, the goal of delayed retirement strategies is to increase financial security and improve quality of life during later years. By carefully considering options and seeking professional advice when needed, individuals can create a plan that works best for them.