Published by Taylor Financial Group (And Oliver the Cat)
So I know what you’re thinking, “Oliver, you are a cat. You don’t work at all. Who are you to tell us that we should consider working longer?” Well, I am here to tell you that I am not just a cat, I am a hardworking individual. In fact, I probably work more than you do, because my work never ends. At the Taylor Financial Group office, I work full time as a Quality Control Specialist, inspecting, testing, and sampling materials (i.e. chairs, couches, mattresses, laps, etc.), for defects and any deviations from specifications (every object must be tested for its strength by gravity).
Then, after the traditional work day is over, I go to the Taylor family home and do my best work as an emotional support animal, bringing joy to the Taylor family. Essentially, I am a very hard worker and you should believe me when I tell you that working longer can make a hugely positive impact on your savings.
Many humans (and cats) do not truly realize the impact that working longer can have on their savings. In fact, the National Bureau of Economic Research found that working a few years longer can be more impactful on improving retirement income security for older workers than boosting 401(k) contributions during the last decade of work.
Investment News concurs, stating that a 36-year-old who increased her 401(k) contributions from 6% to 7% of her pay (assuming a 3% employer match and 5% annual return) would receive approximately four times more benefits from her increased contributions and earnings over 30 years than a 56 year old who increased her savings by a similar percentage over 10 years. In comparison, a 56-year-old worker who decides to work an additional month at the end of her career could receive the same increase in retirement income as she could by boosting her retirement savings by one percentage point over 10 years.
In conclusion, if you are close to retirement, it is important to know the major benefits that can be gained through working longer. If you have questions about your retirement plan and when it would be best for you to retire, feel free to contact the Taylor Financial Group office for advice.
Till next time,
Disclaimer: This article contains forward-looking statements that depend upon or refer to future events or conditions. These statements contain factors that may cause the actual results to differ materially from those expressed or implied. There are no guarantees any investment or strategy will meet its intended objective.
Sources: “Working Longer is the best way to boost retirement income.”