THE BENEFITS OF RETIRING LATER
Deferring the drawdown of retirement assets by just four years increases a person’s eventual monthly income – for life – by 33 percent, says Steven Sass, coauthor of Working Longer: The Solution to the Retirement Income Challenge (Brookings Institution Press, 2008).
And an eight year delay can produce a 75 percent monthly bonus, he says.
Many people actually want to work longer than their parents did, and even longer than they expected, for the continued social engagement and connection as well as the continued income.
Even more promising, a slew of surveys show that as many as half of all baby boomers want to “give back” in their encore careers, in schools, community organizations, environmental efforts, and troubled spots at home and abroad.
These major structural changes in working lives have been building for decades; the economic crisis, which has wrecked many retirement plans, is accelerating this shift and increasing its urgency.
Acknowlegments: encore.org
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