Is 70 the New 65?

​For many workers, age 65 is an important milestone. It’s the earliest eligibility age for full Social Security benefits for many Americans. It’s the age at which you become eligible for Medicare. It could also be your eligibility age for a corporate pension. For a broad range of reasons, age 65 is often generally considered to be a traditional retirement age.
 
However, many workers are now rethinking that idea. In fact, according to a recent study from CareerBuilder, 30 percent of workers age 60 and older say they won’t retire before age 70. An additional 20 percent plan to never retire. That means half of all workers over age 59 say they will work at least another 10 years.1

There are many benefits to delaying retirement to age 70. You get to delay your Social Security filing, which could substantially increase your benefit. You can stay on your employer’s health insurance plan, which may be less expensive and more robust than Medicare. You also get extra years to save for retirement, while simultaneously reducing the number of retirement years that may need to be funded with distributions from your savings.

Of course, working to age 70 and beyond can be a challenge. There could be issues that arise that limit your ability to continue your career. Below are three tips to help you overcome these challenges and extend your career as long as you’d like:

Invest in your health.
Disability is a risk for workers of any age, but it could be an especially dangerous risk for those over age 60. According to the Council for Disability Awareness, 1 in 4 adults will suffer a long-term disability at some point in their lives.2 That risk could increase as you age and become more vulnerable to medical issues.
 
Don’t let your career plans get derailed by injury, illness or chronic pain. If you want to work well past 65, you’ll need to invest in your health to limit your vulnerability. Eat healthy and exercise regularly. Stay current with doctor visits and any important prescriptions. Consider taking up a hobby like painting or music to stay mentally sharp. An investment in your health doesn’t only benefit your physical well-being—it also benefits your career and financial stability.

Learn new skills and knowledge.
Don’t put your career on autopilot just because the end is near. The world is changing quickly. Technology, globalization and other forces have transformed many businesses and industries. You can never predict when an employer may decide to undertake a major restructuring that eliminates jobs.
 
You can limit your vulnerability to job loss by investing in yourself and continuing to grow and develop. Take classes or training that will increase your knowledge. Volunteer to take on difficult projects at work. Make yourself so valuable that your employer will be resistant to eliminating your position before you’re ready to retire.

Protect you and your spouse from long-term care risk.
It’s possible that you could be forced to retire early even if you stay healthy. You might have to leave your career early to provide care for your spouse if he or she develops serious health issues. Don’t think it could happen to you and your spouse? Think again. The U.S. Department of Health and Human Services estimates that 70 percent of all seniors will need long-term care at some point.3
 
What would happen if your spouse needed extended care while you were trying to continue your career? Would you have to end your career prematurely to care for him or her? Could you afford to hire caretakers out of pocket? If not, think about purchasing long-term care insurance, which could help cover some or all of the cost.
 
Ready to plan your extended career? Let’s talk about it. Contact us today at First Fidelity Group. We welcome the opportunity to help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.

 
1http://www.prnewswire.com/news-releases/half-of-mature-us-workers-will-wait-until-at-least-age-70-to-retire-or-wont-retire-at-all-300432256.html
2http://www.disabilitycanhappen.org/chances_disability/disability_stats.asp
3https://longtermcare.acl.gov/the-basics/who-needs-care.html
 
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