Why delaying your retirement could lead to a happier and healthier lifestyle

Written on the 13 June 2023 by Parkside InvestorPlus

Retirement is often seen as a time to sit back, relax, and enjoy the fruits of one's labour.

But what if I told you that delaying your retirement could lead to a happier and healthier lifestyle?

While the idea of continuing to work past the traditional retirement age (65-67) may seem daunting, studies have shown that it can have significant benefits for both your physical and mental wellbeing.

In this article, we'll explore the reasons why delaying retirement could be a smart move for your overall quality of life.

Some of the key benefits of delaying your retirement include improved cognitive health to increased social interaction.

If you're approaching retirement age and wondering what comes next, read on to discover why delaying your retirement might just be the right decision to undertake.

If I had to summarise the key difference between retiring now or delaying your retirement, it would be as follows:

• Retiring now means you will need to live off your own accumulated wealth and assets
• Delaying your retirement means you can preserve and continue to build on your wealth/assets, while your income is derived from someone else

The importance of staying active and engaged

One of the most significant benefits of delaying retirement is the ability to stay active and engaged.

Work provides a sense of purpose, routine, and structure to our lives.

It gives us a reason to get up in the morning, to stay engaged with our colleagues, and to continue learning and growing.

A study conducted by the National Bureau of Economic Research found that delaying retirement led to better cognitive health, including improved memory, reasoning, and overall mental agility.

Also, staying active and engaged in the workforce can help individuals maintain physical health.

There are many jobs require individuals to be on their feet, move around, and engage in physical activity.

Financial benefits of delaying retirement

Another, strong, reason to delay retirement is the financial benefits it can provide.

With advances in medicine and technology, people are living longer than ever before.

By delaying retirement, you can continue to earn a salary and save money for your future ‘true’ retirement.

By working longer, you can help build up your retirement savings and potentially reduce the amount of time you need to rely on your superannuation investment.

The impact of retirement on mental health

Retirement can be a significant life transition that can impact an individual's mental health.

When you retire, unless you have thoroughly prepared for this life event, you may feel a sense of loss or isolation and in extreme cases, a loss of self-worth.

This can lead to feelings of depression, anxiety, and loneliness.

By delaying your retirement, you can help maintain your mental health by providing a sense of purpose and continued social connection.

Meaningful work gives us a sense of accomplishment and achievement, which can help boost mood and self-esteem.

The benefits of social connections in delaying retirement

As we age, social connections become increasingly important for our overall wellbeing.

Many retirees struggle with social isolation and loneliness, which can impact their mental and physical health.

Continuation of work keeps you engaged, not just mentally, including with people – i.e. social interactions.

At Parkside InvestorPlus, we specialise in retirement transition, so if you are approaching a retirement age, it might be worth your while to seek independent guidance on your next best steps.

Contact Parkside InvestorPlus.