Is there a Correlation between Retiring Early and Life Span?


Various forms of research that have been performed over the past few years have indicated that it isn’t actual retirement itself that can result in you living longer; it’s what you do during those golden years that makes the difference.


Study Finds

Information posted in the Health Economics journal from a 2017 study involving three Dutch economists, Stefan Hochguertel, Hans Bloemen and Jochem Zweerink, revealed what happened when a few Dutch civil servants were able to temporarily qualify for early retirement.

Only civil servants who were at least 55 years old and who had 10 years or more of continuous service with public sector contributions qualified. Men who responded to the offer of early retirement were 2.6% less likely to die over the following five years than those who continued working. Too few women met the criteria to take part in the study.

Further study conducted in the U.S. revealed that seven years of retirement can be as beneficial to health as reducing the chance of contracting a serious disease by as much as 20%. Other studies done in England, Germany and Israel have also revealed several positive health effects associated with early retirement.


Retirees Less Likely to be Depressed

Employment not only provides income and in many cases, health insurance; it can also provide employees with a sense of well-being and camaraderie. More evidence than ever before is mounting with regards to the fact that social isolation and loneliness are linked to cognitive decline and even premature death. Forms of employment that involves physical tasks help prevent employees from becoming obese or unhealthy as well.

However, many people find their jobs to be extremely stressful because it not only takes time away from families or recreational activities; this stress can also result in bad habits such as excessive alcohol consumption. In fact, the Dutch study noted that 50% of mortality reduction associated with retirement could be attributed to heart- and digestive-related disorders.


Adopt Good Habits

To get the most out of retirement, you will need to be willing to adopt healthy habits, with the most important one being keeping as physically and cognitively active as possible.

A lack of time is cited as the main reason why most employed adults don’t exercise. However, retirees usually have more time available to them, meaning that they will be more likely to get enough sleep and exercise by means of doing gardening or DIY tasks than working adults.

The age to obtain full Social Security benefits has gradually increased from 65 to 67 years, and adults who have been working after the age of 65 have been noted to be in worse health than those who retired earlier.

According to a survey conducted by the Board of Governors of the Federal Reserve System, several Americans cannot afford to retire. More than 20% of Americans over 40 don’t have any retirement savings, meaning they won’t be able to maintain living standards after retirement. If you would like to prevent this scenario happening to you during your golden years, contact our investment team today.

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Is the Current Level of Retirement Savings an Issue?



Virtually everyone is aware of how important it is to save for his or her retirement years. However, numerous amounts of employees in their late 30s, 40s, 50s and even 60s continue placing their retirement at risk because of not doing so. In fact, just over 40% of Generation X and the baby Boomer generation have not even started building their retirement nest eggs yet. This is obviously a huge concern for the Baby Boomers simply because they are a lot closer to retirement age and therefore have less time to catch up.


Now is the Time to Start Saving

Regardless of your age, if you have been employed for a while and you haven’t put any money aside for retirement, now is the time to start doing so. If you don’t, there is a strong possibility that you will not have enough money to live on during retirement – or in more severe cases, you may not even be able to afford to retire in the first place.


Don’t Rely on Social Security

Several working adults put off saving for retirement because their living expenses are so high. However, there are many others who couldn’t be bothered to save because they think that they will be able to rely on Social Security instead.

Contrary to belief, Social Security simply cannot provide enough money for you to live on after you stop working. In most cases, the amount provided will barely cover your rent or mortgage payment. Research has shown that in most instances, Social Security benefits will cover approximately 40% of your previous income – assuming that benefits will not be cut at some point in future.

Not only do most adults require approximately 80% of their previous income to live on when retiring; several retirees also end up spending more money when their career paths end. For one thing, most seniors end up having to pay out more for health-related expenses – it’s been reported that the average healthy 65 year old couple can be expected to spend upwards of $400,000 on medical care during this time of their lives.


What This Means

In short, you need to start saving for retirement immediately. If you save a good amount of money each month, and do so consistently until retirement, you should have more than enough time to catch up. However, you must keep in mind that the longer you wait to start saving, the more you will need to set aside each month – thanks to compounding interest in your 30s.

As you can see, it is not too late to start saving for retirement if you do so now. Regardless of your age, you simply cannot afford to put this off any longer. You will need to start cutting non-essential expenses, budgeting more accurately and doing whatever else is required so you can free up money to put towards your retirement. If you would like to learn more about planning ahead financially for your retirement, contact our team today.

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Is Part Time Work During Retirement Really the Answer?



The concept of working part time during retirement has become an extremely popular planning tool because of the myriad of possibilities with regards to using this money to supplement existing retirement income and keep connected to the career world, while having the flexibility to spend time with friends and family or even enjoy a few founds of golf or bridge.


Plans Based on Limited Knowledge

Although working part-time during retirement may seem like a good idea, most people base their plans in this regard on extremely limited experience and knowledge, or on a series of short-term events that may not even happen again.

For instance, many retirees are offered income-earning opportunities such as speaking engagements, once-off consulting appointments or other irregular opportunities. While these opportunities seemed to be ideal, in many cases, follow up opportunities never ever materialized, meaning that their hopes of supplementing their savings, traveling or spoiling their grandchildren vanished as well.

This scenario is not only limited to professional opportunities either. Many people have plans to work at their local haberdashery shop, hardware store or even at the business of a friend or family member after retiring, only to find later than they aren’t able to earn the type of money they were hoping for or they weren’t able to secure the working hours they wanted. After all, no one will be willing to pay upwards of $20 per hour to work a few hours a day and not have to pitch in over weekends or holidays.


Other Employment Related Factors to Consider

Something else that most retirees don’t give much thought to during this process is what will happen if they are not happy with the place of work, the position or the location of the place of work they end up with? What will happen if they find that the job is not as fulfilling as they had imagined or it is so stressful that it leaves them feeling completely drained mentally, emotionally or physically at the end of the day? Do they have an alternative plan in place or is their entire retirement resting on their ability to stay in this or another similar position for a predetermined period of time?

This is just one reason why future retirees should be strongly encouraged to avoid making vague assumptions with regards to working part-time during their retirement years. Instead of simply taking for granted that they will enjoy working or that they will earn enough to make working part time worthwhile, they must do some research ahead of time. This can be done by using any existing vacation time that they may have available and it will enable them to see if they will be happy with their plans before committing to them over the long term.

While it can certainly work out to have part-time employment during your golden years, it is crucial that you research all of your options well ahead of time. You certainly don’t want to be stuck in a job you hate during what is supposed to be the most leisurely part of your life.

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How Not to Run Out of Money During Retirement


Although many people are concerned about various aspects of retirement such as going from working full-time to part-time or even having to seek alternative employment altogether, one of their main concerns that has been cited by the older generation is that they are afraid of running out of money during this time of their lives.


Don’t Overlook the Financial Side of Retirement

The best way to ensure that you don’t run out of money during your golden years is to plan ahead as early as possible. You will need to make a list of your goals and desires that you would like to achieve after retiring, and once this has been done, you will need to determine how much money will be needed to make your dreams come true.

If all of this seems too overwhelming to even contemplate, it is a good idea to enlist the help of a reputable financial advisor or planner. He or she will be able to sit down with you to find out what your goals are and whether you will be able to achieve them with your current savings plan or not (if you have one in place).

One serious mistake that too many people make is putting their faith in the fact that they will be able to rely on a Social Security payout to help fund their retirement. While Social Security will most likely be paid to them, the harsh reality is that it will most likely only cover a maximum of 40% of their living expenses after they stop working – and let’s face it, virtually nobody will be able to exist by relying solely on this government payout to survive.


Take Advantage of 401(k) and Other Employer-Sponsored Plans

One of the best ways to help prepare for your retirement from a financial point of view is to take advantage of any employer-sponsored plans such as 401(k), RAs, Roth IRAs and other options. In many cases, employers will be willing to match what you pay in up to a predetermined amount, meaning that in effect, you could be rewarded with double the amount of funds being saved. Although some employers don’t perform a 100% match, any funds that are contributed by them should be considered as a bonus and be taken advantage of.


Use the Stock Market with Caution

Although it can be a good idea to invest funds in the stock market that can be withdrawn at retirement, this strategy should only be undertaken after obtaining professional advice. In most cases, it is strongly recommended that you hire the services of an advisor or investor that has extensive knowledge regarding how the stock market works. Failure to do this could result in you losing everything that has been invested.

In many instances, contribution made towards various retirement savings plans are tax deductible. However, you will need to obtain advice from a tax expert to determine what is what in this regard. If you are keen to ensure that you will be financially secure during retirement, get in touch with us right away.

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