Marketwatch had a post called 5 Reasons Your Shouldn’t Retire which gave a good round up for financial reason to delay retirement (not retire at all; not so much).
One was about delaying taxes. Apparently you do not have to take RMDs if your plan is a 401k, you are still working and still contributing. This one is new to me (for any trolls out there, portfolio manager is not the same thing as a CFP).
Number two is hopefully common knowledge that delaying your social security check increases your ultimate payment substantially. Not everyone can wait or should wait but if you can and you should then this could be a big difference maker. Number three was about lower health insurance costs but there was not much detail in the article on this.
Number four was something we’ve talked about, namely not having saved enough. Whatever your age, if you want to retire but your social security plus a reasonable withdrawal rate is less than what you believe you need then something will have to give and that something might be that you work longer one way or another.
Number five was about not retiring with consumer debt because the interest rate on credit cards would likely exceed investment returns.
This is ground we have covered many times before. As a matter of philosophy I don’t believe in retirement in the way most people think of it although the way most people think about is clearly evolving into something different than what it used to be. Of course I may view this differently when I am older.
I’ve written dozens of times about finding a secondary career to start up around the time of traditional retirement. This achieves several objectives. It relieves some of the income burden off of your portfolio, keeps you active and engaged and reduces any sedentary hours which is obviously a health benefit.
The idea is not to completely replace your income but if you need $2500 beyond your social security and can make $1000/month working 10-15 hours a week doing something you love doing you are winning on multiple levels.
The context from past posts has been monetizing a hobby along the lines of my 80 year old neighbor and his backhoe (he’s 82 now and sold is backhoe about a year and half ago). He was charging $60 and routinely had to turn down work. Obviously some of the rate charged went to expenses (gas and repairs) but how many hours would you need at $30-$40 to relieve the burden on your portfolio.
Most of us will not make a living out of backhoe work but chances are there are things that you are involved with that you might be able to figure out how to monetize if you start working on it now.