Maybe you have had enough of that horrible boss, cannot stand the annoying co-worker any longer, or you just feel burnt out and need a break from work. When this situation happens to younger workers, they typically look for another job. But, older workers often look for early retirement. Before announcing your early retirement decision consider how working one more year could make a difference in your retirement lifestyle.
Why does working just one more year have such an impact?
- Working one more year means the retirement period is shortened, so you would spend less and you lower your risk of running out of resources.
- You would receive higher Social Security and pension benefits for life because you accrue additional years of service and/or at a higher salary level.
- Working longer translates into one more year of free money from the employer match in your employer sponsored retirement plan.
- Plus, you may spend less on healthcare if you have favorable coverage through your employer. Medicare does not begin until age 65 and the cost of private health care is typically much more expensive than employer-subsidized plans.
If you decide to stick it out one more year at your higher paid job, make sure to manage whatever is causing you stress in your work environment. Take more vacation time or propose more flexible work arrangements. If you are a seasoned veteran, no doubt you have proved your worth and will be surprised by what your employer may be willing to do to keep you on board.