If you plan on working past the age of 62 and also delay in claiming your Social Security, you’re not alone.
More Americans than ever over the retirement age are in the workforce, and more than ever are also working full-time.
According to Pew Research, 18.8 percent of Americans ages 65 and older, or nearly 9 million people, reported being employed full or part-time in May of 2016. In May of 2000, only 12.8 percent of 65-and-older Americans, or about 4 million people, said they were working, according to the report1.
CNBC reported that only 10.8 percent of Americans over the age of 65 were still at work in 1985.
The Associated Press and NORC reported that trends suggest the work force to be made up of a quarter of those 55 and older by the year 2020. In 2010, that number hovered at only 19 percent.
The huge increase of older Americans working longer could be the result of a variety of factors, but many point toward the senior population enjoying longer good health into their 50s and 60s. This better health leads many Americans to chose to continue to work even though they could decide to take their Social Security benefits if they chose to do so.
But, is this necessarily a bad thing? It might not be. In fact, working longer may actually be a better decision for some workers out there.
Of course, first speak with your financial advisor before making any decisions, however, delaying taking Social Security and continuing to work can work in your benefit.
“(Delaying taking Social Security) postpones retirement, allows workers to contribute to their 401(k)s for a longer period, provides larger amounts of current income than would retirement money and avoids the actuarial reduction in Social Security checks, so that when people actually put in claims for Social Security they will be able to receive larger checks each month.” - BenefitsPro.com
If you’re thinking about what you plan to do when you reach Social Security age, be sure to contact Steel Valley Investment Group of Raymond James to discuss your options.
1. Pew Research June 2016: “More older Americans are working, and working more, than they used to” http://www.pewresearch.org/fact-tank/2016/06/20/more-older-americans-are-working-and-working-more-than-they-used-to/
Views expressed are not necessarily those of Raymond James & Associates and are subject to change without notice. Information provided is general in nature, and is not a complete statement of all information necessary for making an investment decision. Information contained herein was received from sources believed to be reliable, but accuracy is not guaranteed. Additional information available upon request.