The Fiduciary Advisor Report | Presented by Mark K Lund, Financial advisor, Highland, Utah, Fee only, fiduciary, wealth management

The best non-financial reason to delay retirement

You’ve probably heard a number of good reasons to continue working longer than you may have to. The most prominent are financial.

For example, qualifying for higher Social Security benefits. Every year you delay claiming your benefits from age 62 to 70, your monthly check can increase by about 8%.1

By continuing to work past what’s commonly regarded as retirement age, you can also maintain the continuity of your peak earning years’ income.

And of course, by delaying retirement you delay withdrawing from your retirement savings, which may also give you more financial flexibility.

However, there’s a very good reason to delay retirement that has nothing to do with money. Recent studies have shown that those who work longer delay the onset of cognitive decline that comes with aging.

Mark Hulbert, writing for MarketWatch, says that there’s a lot of anecdotal evidence that putting off retirement can slow cognitive decline. “But actually proving it has remained elusive since doing so requires teasing apart the interactions between myriad different factors and trying to determine cause and effect.”

For example, it’s easy to argue that those who continue working past typical retirement age simply have the kinds of jobs that keep them mentally engaged. Or that the kinds of people who work longer simply do so because they are already less likely to suffer decline.

However, a 2021 study by the Max Planck Institute for Demographic Research employed a novel statistical technique that is able to separate causes and effects. Using data from the ongoing Health and Retirement Study from the University of Michigan, scientists were able to find evidence for the cognitive benefits of delayed retirement.

They found that “postponed retirement is beneficial in cognitive function for all genders, races/ethnicities, education levels, and regardless of professional or non-professional occupational status.”

Now this doesn’t mean that you absolutely must stay at your job into your 70s or face the consequences. But it should inform your thinking as you plan for the future, freeing you up to ask more “what ifs.” What if you stayed at your current job? What if you transitioned to a second career in something you’ve always wanted to do? What if you could begin a “job” in a volunteer capacity, donating your talents to a nonprofit that couldn’t otherwise afford you.

The point is to realize that continuing to work after retirement age is not a sign of failure. Just the opposite. It turns out that dropping all responsibilities and living every day like it’s the weekend isn’t good for you in the long-term.

If you’re looking for ways to make your retirement healthier and more fulfilling both personally and financially, be sure to talk with your trusted advisor.

If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.


This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by Efficient Advisors, LLC (“EA’) for Mark Lund, Mark is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Advisor, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Fiduciary Report. Cities served in Utah are: Salt Lake County, Utah County, Park City, Salt Lake City, Murray, West Jordan, Sandy, Draper, South Jordan, Provo, Orem, Lehi, Highland, Alpine, American Fork. The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.

Category: Articles, Blog

About the Author ()

Mark K. Lund is the author of The Effective Investor, a #1 Best Seller, and founder of Stonecreek Wealth Advisors, Inc. an independent, fee-only, Registered Investment Advisory firm. He has provided articles for or been quoted in: The Wall Street Journal, The Salt Lake Tribune, The Enterprise Newspaper, The Utah Business Connect Magazine, US News & World Report, and, just to name a few.  Mark publishes two newsletters called, “The Mark Lund Growth Report” and “Mark Lund on Money.”  Mark provides CPE (continuing professional education) courses for CPAs.  You may also have seen him on KUTV Channel 2, or as a guest speaker at a local association or business. Mark provides investment and retirement planning services for individuals and 401(k) consulting for small businesses. In his book, The Effective Investor, Mark exposes the false narrative magazines, media, big Wall Street firms, and most advisors want you to believe. The good news is that Mark will show you that you don’t need their speculative ways of investing in order to be a successful investor. Get a free copy when you schedule your initial consultation.

Comments are closed.