As crazy as it may sound to anyone who wants to retire early, many Americans have a never retire mindset and plan to continue working well into their 70s and 80s. There are pre-retirees who create “always working” retirement plans because they either like what they do, they want to keep busy, they enjoy the benefits, or a combination of the three. While there are some positives to never retiring, there are some downsides as well. On the positive side, there are health benefits to remaining mentally and physically stimulated. Even part-time employment would offer regular interaction with others and mental challenges that a retiree may not have otherwise. 

Those who continue working later in life will have more time to save and invest and can enjoy the financial independence their salary plus retirement withdrawals will provide. Once they reach full retirement age, their Social Security benefits will not be taxed no matter how much money they earn. Continuing to work past retirement age is a great choice for anyone who wants to spend freely and not worry about what things cost, like healthcare, for example.

Many retirees struggle with the rising costs of healthcare and high out-of-pocket costs, but never retirees can afford medical care when they need it and will get paid sick leave when they’re unable to work. No matter when you plan to retire, if you don’t have a plan for what happens if you get sick or injured and cannot take care of yourself, your loved ones won’t know what to do when the time comes. As the saying goes, life is what happens when you’re busy making other plans. Everyone needs an effective estate plan.

There are downsides to never retiring, like missing out on time with family and friends. If you are always working, your time is not your own. You won’t have the freedom to be a full-time grandparent if you want, or to travel when and where you want. If you have a physical job, the older you get the more difficult your job will become. You could suffer an injury that could force your retirement. Knowing when to quit is key for all never retirees.

There are never retirees who wanted to retire but had no choice than to continue working. That’s because they didn’t prepare adequately to retire and can’t afford to quit their job. If their work is stressful, never retiring may cause health issues. Retirement planning is essential for anyone who wants to enjoy financial freedom in retirement. Whether you want to retire early or have a never retire mindset, call Alloy Wealth at 800-689-3935 to speak with one of our team members. We work with pre-retirees and retirees and will help you navigate through complicated future planning decisions.