Why You Shouldn’t Bank on a Delayed Retirement

According to Gallup, an increasing number of Americans are opting to work past retirement age. This story will look at how that strategy can backfire. 1. What kinds of issues do investors often overlook when planning a delayed retirement? For example, do they fail to consider the possibility of being downsized and not being able to find another work? What about being forced into early retirement by health issues or having to assume caregiver responsibilities? Is delaying retirement realistic for most workers? 2. How does planning to delay retirement affect your investment strategy? For example, would investors considering maintaining a higher allocation to stocks for a longer period of time if they’re planning to work an extra five years past retirement age? 3. What mistakes do investors typically make with their portfolios when assuming they’ll be able to work longer? 4. Delaying retirement might mean delaying Social Security, which can increase your benefits. If you’re working and taking Social Security, however, how does that affect your benefits? 5. What kind of safeguards should investors build into their financial plan in case they’re not able to delay retirement as originally planned? For example, taking full advantage of catch-up contributions after age 50 to shore up savings? Purchasing long-term care insurance?