If You Don't Want To Retire, Can You Actually Save Less?

Truthfully, it is unusual even for retirees to stop working completely. Most people keep working in order to maintain a healthy mind and body, as well as ensure a healthy social circle. And, of course, for some income.

However, it’s still important to plan your savings and investment as if you will actually stop working in your later years.

Here are three reasons why:

You can’t count on receiving the same pay, even with the same job

While employers are required to offer re-employment up to the age of 65, there is no guarantee that they will not reduce your pay. It’s not ideal, we know. It’s best to brace for a pay cut of 20 to 30 per cent, because most people earn less as they get older.

There's no guarantee of keeping your job

This is the most unpleasant to think about. In the event of an accident or disability, continuing to work may be out of the question. Even without such occurrences, some lines of work are not suitable for the elderly.

You need to be realistic about how long you can keep working because of the hours, skills that keep you relevant, and the fact that your body isn’t going to be young forever.

You need to decide how much you want to leave your children or grandchildren

If you have aspirations to pay for their school fees, for example, you may need more than what a paycheck provides — even if you work past retirement. You might not have grand plans yet on how you’ll provide for kids or grandkids at this point, but it’s always good to know there’s an option to do so if you choose to later in life.

To Conclude

For these reasons, it is important to save even if you plan to keep working.

Better to have it and not need it, than to need it and not have it.

A simple insurance policy of a few hundred dollars a month can provide you a much more comfortable retirement. And the earlier you get yourself started, the less you’ll actually need to put away each time.

But more importantly, if you wake up one morning at age 65 and decide you actually don't feel like working anymore, you'll still have the option to do just that.