Some people simply can’t wait to retire — so much so that they begin counting down the days once they reach the midpoint of their careers. But you might feel very differently about retirement.
Retirement can be a difficult phase to adjust to. You’re going from earning a paycheck to living off of a combination of savings and Social Security. And you’re also going from having a structured routine to having days on end that you suddenly have to fill.
Retirement can also be an isolating period of life. Many retirees feel cut off from the world once they no longer have a job to report to. And so it’s easy to see why the idea of retirement may not excite you at all.
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If so, here’s a news flash. Retirement doesn’t have to be a given. If you don’t want to retire, plan to work indefinitely. If your health holds up, you can enjoy a perfectly happy existence holding down a job well into your 80s or beyond.
But while it’s perfectly OK to shun the idea of retirement, it’s also important to save for retirement — even if it’s something you don’t plan to do.
You need savings, just in case
There’s a reason retirees are often encouraged to work in some capacity. Aside from the financial benefits, a job can serve as a social outlet, and also, a way of staying mentally and physically fit.
Now for many older people, part-time work is a far more ideal solution than full-time work. But if you love what you do and you hate the idea of retirement, then there’s nothing wrong with planning to work for the rest of your life if you feel that will make you happy.
That said, sometimes plans don’t go the way we’d like. You may not want to retire, but health issues that pop up later in life might force you to. And so even if you’re convinced you’ll never enter retirement, it’s important to save for the future nonetheless.
The good news, though, is that you may not need as robust a nest egg if you’re convinced you’ll be working longer than the typical senior. And even if you want the protection of a larger nest egg, getting there may be easier than you’d think.
If you’re able to part with $300 a month for your IRA or 401(k) plan, and you invest that money over 40 years at an average annual 8% return, which is a bit below the stock market’s average, you’ll end up with a nest egg worth $932,000. That should certainly serve as a nice safety net in case you’re forced to cut your hours down the line or stop working altogether.
Carve your own path
Many people eagerly look forward to the day they can retire. But if retirement doesn’t suit you, don’t do it. It’s that simple. As long as you save some money in case things don’t work out, there’s nothing wrong with planning to work indefinitely if you feel that’s the right move financially and emotionally.
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