Should you retire early or continue working if you love your job?

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Take early retirement has become more popular over the years as individuals save and invest to achieve a coveted reality: enough financial freedom to have a comfortable life and no longer work.

Go into retirement is not always as simple as you think. Often we don’t think about how emotional the transition can be; After decades of having a savings mentality, you now have to start spending the money you’ve accumulated, and that can be a source of anxiety for many future retirees. But in addition to this conundrum, those who are about to retire – quite close but could still work a few more years – sometimes face another dilemma: do I continue to work since I love my work or should I stop and start my work? retirement?

To select asked Joe Duran, Chief of Goldman Sachs Personal Financial Management, to weigh in his thoughts and according to him, the answer to your predicament might lie in finding a balance between the two.

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The benefits of working longer

Retirement and our perceptions of it have really changed over the last few generations and now it can include part-time work or even going back to school,” says Duran. “People are reinventing retirement every day and having a good financial plan can give you a lot more confidence and reduce the anxiety often associated with retirement.”

There are, of course, certain advantages to staying as long as possible in the labor market. On the one hand, the more you delaying the distribution of your Social Security benefits, the more you will receive each month when you decide to claim your benefits. If your sources of income in retirement are limited, this may encourage you to continue working until age 67, the age at which you can receive 100% of your monthly benefits. In addition, you can obtain an 8% increase in your benefits for each year that you delay collecting Social Security, until the age of 70.

And, of course, the longer you work, the more more money than you can save to use in retirement, especially if you hadn’t already saved for retirement in your 20s or 30s. Retirement accounts generally have annual contribution limits – for a Roth IRA, for example, you can only contribute $6,000 per year ($7,000 if you are over 50). These contribution limits are use or lose, meaning if you only contribute $5,000 this year, you cannot contribute another $1,000 next year.

Over time, the lost opportunity to maximize your contributions can accumulate, and depending on when you started saving for retirement, it could even play a significant role in the lifestyle you can afford.

So if you haven’t already contributed to a Roth IRA, it might be time to open an account and start putting your money into it. wealth front and Improvement make the process as simple as possible since they are robo-advisors who can actually make investment suggestions based on factors such as your risk tolerance, goals and time horizon for retirement. Because of this, they also take a lot of the stress out of managing money, which can be a benefit for many people because there is already so much to do in everyday life. Or, if you want to go the more traditional route, you can open a Roth IRA through a brokerage like loyalty or Schwab.


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Even if you already have a 401(k) account at work, it’s always a good idea to contribute to a retirement account that’s not tied to your employer and allows you to contribute after-tax income upfront for tax-free withdrawals in the future. This is yet another factor that can play a role in the amount of the financial flexibility you have in retirementand it can be as important as how long you stay in the job market.

“Continuing to work for as long as possible will absolutely give you more choice and financial freedom in retirement,” says Duran. “Working longer not only gives you more savings and builds your safety net, but it also provides health benefits that you don’t have to pay for personally.”

It is important to find a balance

However, Duran also suggests that you should keep balance in other areas of your life in mind when considering whether or not to stay in the workforce. According to him, even if you like to work, you will never be able to regain the time you lost. It is important to determine which actions would give you the right balance between financial flexibility and how you would like to spend your time for the rest of your life.

“It’s also important to remember that the people in your personal life need to be included in how you prepare for and think about what retirement might look like,” Duran says.

Many people choose to take advantage of their retirement to spend more time with their adult children and grandchildren. They may find that being able to pick up their grandchildren from school, join their family during spring break or summer vacation, and volunteer for their grandchildren’s school events are meaningful ways of retire — especially if they would not have been able to participate in these activities during a normal working day.

But those who don’t feel quite ready to say goodbye to work can think of ways to make adjustments that will still allow them to work and adapt to non-work activities that bring them joy.

“Many people today are thinking about adjusting their professional lives by reducing the number of days they could work or taking up consulting work as an alternative so that they can continue to enjoy the work but also increase the amount of personal freedom they’ve earned,” Duran suggests. “It’s not just a financial decision, it’s also a psychological decision and losing your work identity can be quite difficult to deal with, which is especially true if you’re anxious about your financial situation.”

At the end of the line

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff alone and have not been reviewed, endorsed or otherwise endorsed by any third party.


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