$type=slider$meta=0$readmore=0$snippet=0$count=5$show=home

Planning to keep working in retirement? Your body may have a different plan

INDONESIAKININEWS.COM -  The traditional view of a work-free retirement is fast becoming a relic of prior generations.  In the 2022 Retireme...



INDONESIAKININEWS.COM - The traditional view of a work-free retirement is fast becoming a relic of prior generations. 

In the 2022 Retirement Confidence Survey by Employee Benefit Research Institute (EBRI), 70% of workers expected their paychecks to be a source of retirement income.

The benefits of continuing to work are clear. You can keep contributing to your retirement account as you delay your retirement contributions. Working longer may also allow you to put off collecting Social Security – which will give you a higher benefit later.

Unfortunately, working deep into your retirement years may not be a realistic plan, as the researchers discovered. Your body – or fate – may have a different plan.

► The Daily Money:  Get our latest personal finance and consumer news in your inbox

Planning to keep working in retirement? Your body may have a different plan.

Retirees' experiences different from workers' expectations

The same EBRI survey asked retirees to weigh in on their experiences with work in retirement. More than three-quarters of retirees (78%) said they weren't using work as a source of income. 

Further, 47% of retirees admitted to retiring earlier than expected. Of that group, a large majority linked their early retirement to circumstances outside their control. Specificallyl

32% retired earlier due to illness
33% retired earlier due to corporate downsizing or restructuring
13% retired earlier to care for a spouse or family member
7% retired earlier because their skills no longer matched their jobs

Here's the takeaway; A retirement plan that relies on your paycheck may expose you to the worst of financial surprises. As the data indicates, seniors commonly retire earlier than they would like.

If that happens to you and you're not prepared financially, your early retirement could come with a major lifestyle downgrade.

Retirement poll:  Only 31% of Americans expect their savings to last

Backup your finances with higher savings contributions

Saving and investing more are often the best moves you can make to protect against an earlier-than-planned retirement. If you have a workplace 401(k), take advantage of high contribution limits and catch-up contributions if you're eligible.

This year, you can contribute up to $20,500 to a 401(k). The IRS additionally allows for $6,500 in catch-up contributions if you turn 50 before year-end.

Making use of those catch-up contributions can significantly increase your savings balance at retirement. Say you invest the full catch-up amount of $6,500 annually between the ages of 50 and 65. Assuming your return is a market-average 7%, those contributions will grow to about $160,000.

You can also stash more money in a health savings account (HSA) if you're eligible. For everyone under age 50, 2022 HSA contributions are capped at $3,650 when you have self-only, high-deductible health insurance. If you have family coverage on a high-deductible health plan, your contribution limit is $7,300 for the year. In the year you turn 50, you can add $1,000 to those limits.

Do municipal bonds have any downsides? Here's what you need to know

Reduce debt and build cash

Reducing high-rate debt and building your cash reserves will also strengthen your finances. You'll want to pay down your high-rate debt before retiring, anyway. Doing it now frees up cash to fund higher retirement contributions.

Ample cash savings gives you the flexibility to manage through all kinds of unexpected circumstances. Say you do get laid off in your late 50s. You could use your cash on hand to pay the bills temporarily as you explore the job market and/or rework your retirement funding plan. Without sufficient cash reserves, your only option may be to start your 401(k) retirement distributions immediately.

Hope for the best and plan for the worst
In personal finance, it's always smart to consider the worst-case scenario. With respect to retirement, that worst case could be losing your paycheck five or 10 years earlier than you'd planned.

Raising your retirement contributions now is usually the best defense against a forced early retirement. Paying down high-rate debt and increasing your cash savings are also smart moves. You're not likely to regret any of these steps, either. Even if you end up working as long as you'd like, rock-solid finances are always good to have.

Offer from the Motley Fool

10 stocks we like better than Walmart: When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now... and Walmart wasn't one of them! That's right – they think these 10 stocks are even better buys.

By: Catherine Brock
Source: today


Name

Baerita,3,Berita,23964,Cek Fakta,3,H,151,HUMOR,7,Internasional,1001,Kesehatan,29,Nasional,23000,News,1361,OPINI,81,Politik,6,Seleb,3,Tekno,1,Viral,3,
ltr
item
IndonesiaKiniNews.com: Planning to keep working in retirement? Your body may have a different plan
Planning to keep working in retirement? Your body may have a different plan
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjDoFbIfeNtl4aOi_G7Brsb4uNkV84ukUE1NoAZGsEHede_dI845AxfsEnE1_9wih5TOoCBQYX1HGlttnAd7gnPmZstBBMlsFquZSfyAqT7ilAoSVIeBLPEnLcB6i7ID91dZ0I1RJsERLvMiil66NnTF8YGBPgzMTuzizlSjpWR-50oU1wMJ8tpiM9Ilg/w640-h364/IMG_20220611_124431.jpg
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjDoFbIfeNtl4aOi_G7Brsb4uNkV84ukUE1NoAZGsEHede_dI845AxfsEnE1_9wih5TOoCBQYX1HGlttnAd7gnPmZstBBMlsFquZSfyAqT7ilAoSVIeBLPEnLcB6i7ID91dZ0I1RJsERLvMiil66NnTF8YGBPgzMTuzizlSjpWR-50oU1wMJ8tpiM9Ilg/s72-w640-c-h364/IMG_20220611_124431.jpg
IndonesiaKiniNews.com
https://www.indonesiakininews.com/2022/06/planning-to-keep-working-in-retirement.html
https://www.indonesiakininews.com/
https://www.indonesiakininews.com/
https://www.indonesiakininews.com/2022/06/planning-to-keep-working-in-retirement.html
true
1493314966655697463
UTF-8
Loaded All Posts Not found any posts VIEW ALL Selengkapnya Balas Cancel reply Hapus Oleh Beranda Halaman Postingan View All RECOMMENDED FOR YOU LABEL ARCHIVE CARI ALL POSTS Not found any post match with your request KEMBALI KE BERANDA Minggu Senin Selasa Rabu Kamis Jum'at Sabtu Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy