Alert
Close

Emergency Aid Needed After Nepal Quake – Donate Today

Highlights

Open
Renew for 3 and attend Life at 50+ for free

Driver Safety

Piggy bank on the road - AARP Driver Safety

Take the new AARP Smart Driver Course!

You Could Choose Your Dream Vacation
Happy African American couple

AARP Books

Visit the Money Section

Enjoy titles on retirement, Social Security, and becoming debt-free.

Jobs You Might Like

most popular
articles

Viewed

Live for Today, Save for Tomorrow

What if working longer meant more fun, not less, and a bigger nest egg, too?

It's crazy not to save during your 60s. What if the market collapses? What if you get sick? What if you lose your job?

Working longer gives you the chance for some immediate gratification in your 60s, but it's not a free ticket to fiscal irresponsibility. Don't stop contributing to your 401(k) if your employer provides a match, for example; instead, dial back your contributions but keep saving enough to qualify for the maximum match. Otherwise you're essentially passing up free money. Don't drag debt into retirement. If you carry credit card balances, pay them off before you get into practice retirement's live-it-up mode. (Then keep them paid off.) Fahlund also recommends making big-ticket purchases while you have the income to cover them. And stay alert to market headwinds. If T. Rowe Price's 7 percent preretirement and 6 percent postretirement return assumptions look dicey after a few years, you may have to adjust by diverting more of your income into savings again, or trimming your expenses, or even delaying retirement by a year or more.

Can you really count on keeping your current job all the way to 70? Even if your employer is willing, your health may have other ideas. If you think that you're hale enough to go the distance, and secure in your position, practice retirement could be a possibility. "You have to take a look at your current job circumstances and ask yourself what is the likelihood you will be with that employer at age 67," Sass says. "If you do change jobs, you will probably lose money."

But don't forget that you can safely earn less than you once did. Since you are no longer diverting 10 or 15 percent of your salary into savings, you can bring home 10 or 15 percent less and still maintain the same quality of life. The aim is simply to resist tapping your savings and Social Security benefits until you are deep in your 60s.

Which brings us to the true benefit of working to a later age: options. One option is to have fun and spend more in a practice retirement. Another is to earn less money and take your foot off the career gas — or do work that's more meaningful to you. As long as you're still earning your living, the choice is yours. And with a Plan B like that, who really misses Plan A?

Next: 5 keys to working past 60. >>

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

Advertisement

The Cheap Life

Jeff Yeager Cheap Life Ultimate Cheapskate AARP YouTube web series save money

Catch the latest episode of The Cheap Life starring Jeff Yeager, AARP's Ultimate Cheapskate. Watch

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

member benefit aarp financial service auto insurance

AARP® Auto Insurance Program from The Hartford offers members no-cost quotes.

AARP Credit card from Chase

Members can get cash back rewards on purchases with the AARP® Credit Card from Chase.

Woman holding smartphone in city, Google map tool

Members can find discounts on the go via the AARP® Member Advantages Offer Finder app.

Member Benefits

Join or renew today! AARP members receive exclusive member benefits & affect social change.

Advertisement

Advance your skills. Transform your career.

Explore your learning possibilities.