Financial Professional Dale McCarty

SHERMAN, Tex. (KXII) - 1. Are you seeing more clients waiting to retire?
• Yes, we are. Americans are living longer today than ever before and so retirement is longer than it used to be!
• A recent survey by CareerBuilder found half of all workers age 60 and older plan to retire at age 70 or not at all.

2. What are the benefits of waiting, past the age of 65, to retire?
• Many people now are planning for longer periods of retirement. By working a couple extra months or years, you not only offset some of the withdraws you would make if you had retired during that time, but you are also able to add to your base retirement income.
• Recent research from the National Bureau of Economic Research[1] suggests that delaying retirement by 3-6 months can have as much impact on your retirement standard of living as saving an additional one percent of all labor earnings for 30 years.

3. How do you know if you are someone who should work past the age of 65?
• It’s a good option for someone who doesn’t have adequate retirement savings. One positive is it allows you to delay taking social security benefits. By doing so, it can increase your lifetime payout.
• For example, by delaying taking social security, you could receive a certain percentage multiplier on top of your “full retirement benefit.”
• Consider, for example if you were to receive $1,000 from social security as your full benefit. By delaying receiving by one year this benefit could increase the payout to 108% of the full benefit amount.

4. If you are coming up on your retirement years, and you discover that you might not have enough tucked away to meet your income goals, what options do you have to boost your retirement income?
• One popular option individuals might use in order to make up retirement income is to use the 401k catch up period. Workers over the age of 50 can elect to put in an additional $6,000 on top of the IRS max to their 401k.
• Another option savers might consider is evaluating their overall expenditures to cut expenses, create cashflow, and allow for additional savings. By creating a budget and sticking to it, you could save more money. In addition, refinancing debt at a better interest rate can potentially create cashflow that could be allocated to retirement savings.