As I speak to more and more folks close to retirement, I often hear people say something like, “I’m going to work one more year because then I will maximize my pension,” or “I’m going to wait until 67 to withdraw from Social Security so my benefits aren’t reduced.”
First, Gladys, in all things – you do what works best for you. Hard stop.
But there’s always a question lurking in the back of my mind:
Do you need to?
Especially for us overachievers, I wonder if some of us are making these decisions simply because we want to squeeze every possible dollar out of the system.
But perhaps the bigger question we should all be asking ourselves is:
How much is enough?
Loving Me Some Gold Stars
I think my tendency to achieve started very young.
I remember how much I loved earning those gold stars for doing well in school. Girl Scout badges? Loved those, too.
Getting good grades wasn’t just about doing well in school. It was both an accomplishment in itself and a gateway to my future.
And living in Northern Virginia, this is a place practically overflowing with Type A high achievers.
I get it.
Maybe the Gold Stars Have Their Place, But . . .
As we get older and start thinking about retirement, it’s worth considering what retirement actually means to each of us.
I mean, duh, first and foremost, it’s financial stability. No doubt.
And when you’ve got access to a system that provides that stability, especially if you didn’t come from money, like me, you want to be extra super sure you can provide for yourself and your family.
I’ve written about this before, but it’s worth repeating that I wasn’t planning to retire early from the federal government last year.
I was going to work my full 35 years, maximize my pension (more or less), and essentially be done working full-time at 57.
That seemed like a dream come true, especially considering both of my parents worked into their 80s.
But then the opportunity came along to retire from the government at 47.
And after initially deciding against it, I reconsidered.
Purpose Matters
Looking back at how long my parents worked, I understand now that their work played an important role in their later years: purpose.
Having purpose in retirement is critical, whether it’s through paid work, volunteering, or simply staying engaged in activities that bring you joy.
For me, personally, the older I get, the more importance I place on my mental and physical health. And honestly, I don’t believe working full-time indefinitely will allow me to keep those priorities front and center as I age.
So hubby and I, along with our trusted financial advisor, have spent a lot of time asking ourselves:
How much is enough for us to have options?
Options to pursue other passions, like my photography business and The Budget Bee.
Options for hubby to run ultramarathons and do other ridiculous physical things like that.
Options to have more time to take care of ourselves.
Because that matters, too.
What Exactly are you Maximizing?
I once worked with one of my favorite colleagues who would say, “Minimize to maximize,” and I loved that.
But I think sometimes we get so caught up in maximizing our financial benefits that we forget to ask what we’re giving up in exchange.
So ask yourself — and if you have a financial advisor, ask them to help you figure out:
How long do I really need to work, and at what salary, to give myself the financial security and options to choose what I want to do?
For hubby and me, that looks like him having enough time to run his races and me having time to take on photography jobs I enjoy, without worrying about how much income my business brings in.
It means getting enough sleep.
It means eating well.
It means reading more, scrolling less.
All of it.
Because sometimes it makes sense to work full-time another year to increase your pension, or wait until 67 or even 70 to collect Social Security.
But sometimes it doesn’t.
And that’s where I think we need to ask ourselves a different question.
If working another year means a larger pension, is that additional money worth another year of my time?
Maybe it is. Maybe it isn’t.
What works best for you is unique to you.
But I encourage you to figure out what you’re working toward, what it will take to get there, and whether the additional money will meaningfully improve your life.
Because at some point, the question shouldn’t be how much more money you could have.
It should be whether you already have enough to live the life you want.
🐝 That’s the buzz for today!