General Retirement Planning

Question 0

What are the main advantages of retiring later?

Answer 0

1. More savings and more time compound wealth
2. Less years in retirement

Items 1 & 2 can be conceptually combined into the idea that “You’ll have more money and less time to spend it.”

3. You are likely to increase your AIME by adding to highest paid 35 years. The likelihood is increased by the fact that indexing stops at age 60. Plus, many professionals are in their highest paid years.
4. Delaying SS causes benefits to increase due to delayed retirement credits.
5. Studies consistently show that working is beneficial for mental health. The social connections, sense of purpose, ability to continue contributing all contribute to a sense of engagement and happiness. It also increases peace of mind because it contributes to financial security.
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4.

Question 1

What are the things that most pre-retirees fail to take into account when thinking about retirement planning?

Answer 1

The effects of:

Taxes
Inflation (a kind of long term tax)

Also
Long term care
Need or desire to help children
Major infrequent expenses
Healthcare