The following is a guest post. If you are interested in guest posting for The Frugal Farmer, see our Guest Post tab at the top of the page or by clicking here.
Why You May Want to Delay Retirement
Although it seems like everyone has the goal of being able to retire as early as possible, there are multiple reasons why it might be beneficial for a person to consider delaying their retirement in order to reap the benefits that the delay can provide.
Just because you are of appropriate retirement age, that doesn’t necessarily mean that you should feel forced or pressured into retiring. There are many reasons why waiting to retire might actually be to your benefit in the long run. Here are just a few:
Saving More Money
One of the most obvious benefits of delaying retirement is the fact that it will allow you to save more money. Instead of retiring as quickly as possible and relying on the amount of money that you have currently been able to save, delaying retirement by even just a few years can allow you to really dedicate yourself to saving large amounts from each of your paychecks, and to store that extra money away where you will be able to easily access it in the future. This will allow you to retire much more comfortably and worry less about money issues such as healthcare and entertainment costs.
Allowing Retirement Funds to Grow
The more time that you give your 401(k) to recover from the 2008 financial collapse, the more money you will likely have in your account when it comes time for you to retire. The retirement funds of many have really recovered since the stock market started to turn things around, and by waiting a year or two more, you will likely be able to secure a more comfortable retirement.
Learning New Hobbies
Many people have a tough time adjusting to retired life. One reason for this can be because they have had so much of their time taken up by work that they aren’t used to having an abundance of “down time”. It’s important during the years before retirement comes to have a plan as to how you might spend your free time. Giving yourself some extra time to rediscover your interests or learn some new hobbies will ensure that you are able to adjust more quickly to retired life and find new activities to fill your time with.
Making a Plan
Taking your time to prepare for retirement allows you to do some planning for other parts of your life as well. There may be places you’d like to visit, volunteer work you want to do, or friends and family that you’d like to see more often. Taking additional time before retiring, in order to plan out what you might do during these “free” years, ensures that you will enjoy your retirement that much more.
If you like what you do at your current job, you may not feel too bad about spending an extra year or two there and enjoying another year or two in your field before you turn in your key. For many, work is very fulfilling, and the transition to a life of retirement may seem overwhelming or difficult in some way. Taking another year or two to work, even if it’s just part-time, might make leaving your job for good that much easier.
There are many things that need to be taken into consideration in order to ensure that you are able to not only enjoy retirement to the best of your ability, but also plan for the future as well. Take time now in order to ensure that you go into retirement as prepared as possible, both financially and personally.
Author Bio: You can find Dave Smith blogging all over the financial community with his passion for saving and frugality. Even if you are rich, he believes it is still healthy to have a balanced wallet.