Ask the Piggy Bank: Should I Put Off Retirement?
I’ve been thinking about my parents a lot lately, since they are approaching retirement age. My husband’s dad retired last year, and his mom expects to retire this year. So I’ve been contemplating their situations. I also had a brief email conversation with Patrick over at Cash Money Life in which he wondered how many people are considering putting off retirement because of the current economic issues. So, really, it is no surprise that over this past weekend I’ve received a few emails to this effect:
I’m a couple of years away from retirement. Should I put it off for a couple more years?
Over the past couple of decades the concept of “retirement” has been changing. We have largely shifted from a pension-based retirement society to one that relies more on personal investment accounts like 401(k)s and IRAs for retirement income. This has also been resulting in earlier retirement ages. However, WREX news points out that an AARP poll shows that some are thinking about putting off retirement now, due to the economy.
With the stock market doing what it’s doing, many people are experiencing statement shock as they see that their retirement accounts are losing money. But, as Patrick points out, withdrawing money from your retirement account really isn’t the best solution. And, it may not be in your interest to retire just yet, either.
You should look at your personal finance situation to see where you are at. Chances are that the stock market will recover in the next few years, so if you can work for a couple more years, it might actually be beneficial for you to put off retirement. That way you can still earn an income while you wait for your retirement account to recover. Additionally, it you might consider continuing your retirement account contributions. Your money will buy more while it’s cheap, and that could benefit you later — provided you have chosen solid investments that are likely to recover.
Disclaimer: I am not an investment professional. This should not be construed as investment advice. All investment carries the risk of loss. Before investing, do your own research and/or consult with an investment professional.
Tags: 401(k), AARP poll, ask-the-Piggy-Bank, investment accounts, IRA, pension, put off retirement, Retirement, retirement-account, stock-marketRelated Stories
POSTED IN: Economy, Money advice, Retirement, ask-the-Piggy-Bank
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