We all have a vested interest in creating retirement plans to assure us of a more comfortable and stress free retirement lifestyle. If you didn’t start planning early enough, you may find it necessary to work past retirement age of 65.
What You Need to Know Retirement Plans and Working Past 65
We are going to briefly examine some of these challenges and how it will affect you as you grow older.
• Health challenges
Aging comes with so many health challenges that may be as a result of accumulated stress, unhealthy eating habits, childhood sickness, accident or even inherited diseases. If you look around in society today, many people who are past 50 years are usually suffering from one ailment or the other. Some people may be having diabetes, poor eyesight, high blood pressure, insomnia, etc.
Some of these diseases require you to have less stress, get adequate sleep, and changes in diet. It becomes a bit more difficult to take care of these issues and continue with the high stress jobs we had in the past.
• Financial pitfalls.
Another aspect to consider is a financial pitfalls is making contributions to your IRA or taking the required minimum distribution from your 401k. If you work beyond 65 years and get to the age of 70 and above, you will not have the allowance to make further contributions to a traditional IRA even if you are working and earning income. Also, you cannot take the minimum distribution from your 401k if you are working till you leave your current job.
Another financial pitfall of working beyond 65 years is that you will not be able to convert pre-tax retirement plans to after tax instrument even if your income remains the same or grows beyond what you used to earn before.
It is not actually a crime to work beyond the age of 65 years. If you have not prepared for your retirement, you can choose to extend your working years. However, there are some factors that might limit your efforts, so it would be wise to weight your options to make the right decision. A good financial planner would be an asset to make sure you make the most use of all the resources you have.