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You may be eager to retire after 30 or 40 years of working. Not so fast! Working just a little longer can mean a lot more money in retirement. If you will receive a pension from your union job, you definitely will want to consider working until you are vested fully and can receive the maximum pension benefit. Staying on the job after you have vested, though—either part-time or full-time—may allow you to hold on to your nest egg longer, pay off any debt you still owe and keep you more active.
While most people think they will work until they are 65, the average worker retires at age 62, according to the Employee Benefit Research Institute's (EBRI) 2006 Retirement Confidence Survey.
But retiring too quickly can be costly. For example, a 2004 research study by the Center for Retirement Research at Boston College found that by working until age 65 instead of 55, a typical worker could nearly double his real annual income. By waiting until age 68 to retire, he would accumulate enough to have about three times the amount of money available to spend during retirement, compared with someone age 55. Even working a couple of years longer, if you are able, can make a big difference in your retirement resources.
At the same time, just because you want to work doesn't mean you will be able to. You may find that you need to take care of an ill spouse, for example, or you may have health challenges of your own. About two-thirds (67%) of workers expect to work at least part-time in retirement, but only about one quarter (27%) of retirees actually work, according to the EBRI 2006 Retirement Confidence Survey.
Some union members decide to go back to school and enter the workforce in another union job. Start thinking about your options and if further education is appropriate, visit the Union Plus College Planning Center for help.
Some employers specifically are targeting older workers for their open positions. For sites that list job opportunities for seniors, visit Senior Service America.
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Think about your career and at what age you'd like to realistically retire. What type of work would you like to do as you get older—the same job, a new career, part-time work or can you afford to retire without working?
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Check the page: How much will I need? to see how you're doing with retirement financial goals.
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