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With the decline of the financial markets, many workers between the ages of 50 and 65 are asking their financial advisors if they should rethink the start of their retirement. The answer, of course, is that it depends. But certainly the considerations that apply to most everyone would be that by holding off allows you to 1) wait until the financial recovery is underway and your investments start to return to their earlier values and 2) buy into the market at low prices and take advantage of any upswing, thereby making up for some of your losses.

Here are some other smart reasons to delay retirement in this economy:

         1. Time it so that your retirement coincides with your spouse/partner and you can eliminate work-related expenses together to maximize savings. It also allows you to maximize Social Security contributions or getting to an age when you can both collect a full benefit while continuing to work (if you choose).
         2. With life expectancies being prolonged, it is not unusual to live to your mid 80s or beyond. By delaying retirement, you can preserve your savings and ration it over fewer years.
         3. Conversely, the same is true. The longer you work, the greater the number of years you have to save and invest.
         4. A big advantage of postponing retirement is to continue your medical insurance until you are eligible for Medicare benefits.
         5. Some employees have a pension plan which is based on years of service. The more years you put in, the higher your monthly retirement income.
         6. Finally, if you can time your retirement to coincide with the sale of a business and/or the sale of your home, it will give you incremental income to live off of and invest.

      Of course there is no one-size-fits-all retirement plan. Sometimes the decision is not your own, for example, if your company downsizes or folds. Health issues are also a factor in determining a date. But if the decision is in your hands, ask yourself if you would have a greater comfort level retiring now or in the future. You’ll know the right answer.

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Tags: delay retirement, lee rosenberg, maximize savings, retierment, retirement, retirement considerations, retirement plan

About the Author: Lee Rosenberg is the Co-founder of ARS Financial Services, Inc. As a Certified Financial Planner with more than 34 years of solid financial expertise. Lee is a registered representative of Cadaret, Grant & Co., Inc. He was also named one of the top 25 Independent Financial Advisers in the US by Rep magazine.

This entry was posted on Saturday, April 4th, 2009 at 5:00 pm and is filed under retirement. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.