Retirement is expensive, and records suggest that almost 40 percent of American seniors retire with no savings at all. Savings, especially in today’s economy, are harder to come by as inflation has made prices skyrocket. The rate of inflation quickly outpaced Social Security benefits, forcing 25 percent of seniors to pinch their pennies or, as CNBC’s Carmen Reinicke reports, decide to delay their retirement all together.
Delaying retirement is no small decision, but unfortunately for many Americans, it may be necessary. Inflation has raised the cost of living for many seniors, making it difficult save money. While putting off your retirement plans for a little longer may sting, it might be the right choice.
By delaying retirement, you might become entitled to a higher benefit. Planning when to claim your benefits take time and strategy. If you claim too early, you might be leaving money on the table. The deciding factor comes down to your age, and how close you are to your “full retirement age.” If you are at or past your full retirement age, you can claim a bigger benefit, which if we’re looking at the glass half-full is a nice upside.
What Else Can We Do?
Plan. Inflation forced us into this situation, and because of that more seniors are seeking financial advice. Bankers, financial advisors, and professional investors can all help find ways to potentially increase our retirement income.
Additionally, if delaying retirement is the way forward, we can use the extra time to earn as much as possible. We can use those earnings and contribute what we can to other retirement accounts, like 401(k)s. The whole reason people are delaying retirement is because it’s harder to save, but if we can bear it, investing whatever we can spare can help us overall.
Delaying retirement is never easy, but always remember that you have more options than you might realize. Join the Council for Retirement’s fight to protect Social Security, protecting your benefit for when you do retire whenever that may be.