Many people dream of retiring early. But doing so means taking a financial risk. Your savings need to last longer, and you may not have as much time to boost your nest egg as you'd like.
On the flip side, delaying your workforce exit could make for a more financially sound retirement. If you work longer, you'll have more years to fund your IRA or 401(k) plan.
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Plus, working longer could make it possible for you to delay your Social Security claim beyond full retirement age. That allows you to boost your monthly benefits for life.
But while delaying retirement clearly has some financial benefits, there are a few drawbacks to be aware of, too. Here are some pitfalls to keep in mind.
1. Your job could contribute to health problems
In some cases, working longer leads to better mental health and helps people's minds stay sharp. But depending on your job, sticking with it a few extra years could cause your health to worsen.
If your work is stressful, that could cause a world of issues. If the demands of your job cause a lack of sleep, that, too, could have serious health consequences.
Plus, when you work a desk job, there's the risk of being too sedentary for your own good. You may want to discuss some of your health-related concerns with a medical professional and get their take.
2. You might miss the opportunity to take advantage of good health
Many people find that their health and mobility decline as they get older. If you delay retirement, you might end up with more money. But you might also end up losing out on the opportunity to travel and do other things you've always wanted to do with that money due to worsening health.
Of course, this isn't guaranteed to happen, and it's also a good thing to discuss with a medical professional. But if you reach your mid-60s in great health, know that you're not guaranteed to feel the same way physically in your early 70s.
3. Working longer could cause marital conflict
It's true that being a retired couple and having too much together time could tax a marriage. But delaying retirement could have a negative effect on your marriage, too.
If you want to delay retirement but your spouse doesn't, that's apt to cause conflict. They may feel like they can't do things like travel without you, so they're stuck waiting for you to leave your job.
Plus, if your job is so demanding that it takes you away from your family, that's apt to be a sore spot, too. Be sure to consider the effect a delayed retirement will have on your relationship before locking yourself into that decision -- and be willing to compromise.
Your plan might have you working until you're 73. If your spouse really wants you retiring at 67, 70 sounds like a pretty reasonable middle ground.
All told, there are plenty of good things that can come out of a delayed retirement. Just be sure to consider the pitfalls as well.
