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Are you financially prepared for retirement, but still questioning if it's the right time to take the plunge? In this insightful video, Johnathan Rankin, founder of Theorem Wealth Management, delves into 3 thought-provoking reasons why you might want to reconsider retiring just yet.

Learn about the significance of:

Loving your job and finding purpose in your work.

Embracing the psychological shift from accumulating wealth to spending it during retirement.

Developing a fulfilling social life after leaving the workforce.

Johnathan also touches upon the benefits of delaying retirement, such as increased retirement income and improved mental and physical health. This video is a must-watch for anyone contemplating retirement, as it provides valuable guidance to help you make the most of your golden years. Don't forget to subscribe to our channel for more retirement planning tips.

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For going on 2 decades I have worked with people to help them maximize their retirement. In fact we here at Theorem have put out dozens of videos to help you achieve your retirement goals. But today, we're changing it up and talking about why you SHOULDN'T retire, even if you can afford it.

Hey everybody I’m  Johnathan Rankin, the founder of Theorem Wealth Management. If you're new here, make sure you subscribe to our channel so you don't miss any of our retirement planning videos. And if you've been following us for a while, welcome back!

Now, one of my favorite sayings is "just because you can, doesn't mean you should." I mean, this applies to so many things in life, like eating a whole pizza or wearing Crocs in public (sorry, not sorry). But today we're talking about retirement. A lot of people think of retirement as this finish line, like once you hit a certain age or number, it's game over. But is that really the case? Just because you can afford to retire, does that mean you should retire? Let's dive into 3 reasons why you might want to think twice before you punch the clock for the last time.

First up, reason #1: you love what you do. I mean, let's face it, work can provide us with a lot of benefits beyond just a paycheck. It gives us purpose, structure, and social connections. Plus, you get to do what you love every day. According to a survey by the Transamerica Center for Retirement Studies, over half of workers who plan to continue working past 65 do so because they enjoy what they do.

If you are one of those lucky people that found their passion in life and you enjoy what you do, then why give all of that up just because you can afford to stop working. If you had the money to take a month long cruise, but you get seasick on boats, you probably wouldn’t book that trip. If work is not a burden to you and you find enjoyment in it, that’s rare. In fact a study found that only 36% of workers in the US say they were satisfied with their current job.

Next up, reason #2 why you shouldn’t retire: you haven't mentally grasped the change from accumulation to decumulation. During the accumulation phase of your life, you're focused on saving and building your retirement nest egg. But once you hit retirement, you're in the decumulation phase, which means you're focused on spending down your savings.

That can be a tough transition for a lot of people. For decades you saw your net worth climb over the years and now to see that reverse course, it can be tough for some people to get past. Taking money out of your savings is what you may have planned for, but when it comes down to actually doing it can make some people feel like they are not financially stable. It is drilled into our heads for years that you shouldn’t touch your retirement savings. In fact, the IRS even penalizes you if you tap into it under 59.5. So if the thought of withdrawing from your portfolio stresses you out, it’s ok to take some time. It would be a much more enjoyable retirement to delay retirement for 6 months to a year and feel completely at peace that it is time you start drawing down your savings as opposed to rushing into retirement, but then stressing out every time you make a withdrawal.

And hey, delaying retirement can actually have financial benefits too. A study by the Center for Retirement Research at Boston College found that delaying retirement by just one year can increase your retirement income by 7-8%.

That brings me to the last and what I have seen as the most important reason to not retire reason #3: you haven't planned your social life after retirement. Now, I know that sounds like it's not a big deal, but studies have shown that social isolation and loneliness can have a negative impact on your mental and physical health. A 2020 study found that social isolation and loneliness are as harmful to health as smoking 15 cigarettes a day.  That's why it's important to have a plan in place for how you'll stay connected with friends and family, pursue your hobbies, and stay engaged in your community.

As great as retirement can be, you may no longer have the daily interactions with colleagues, even if it is just the head nod while passing each other in the hallway. A lot of clients have found that they only keep in touch with a handful of old colleagues if any during retirement. This doesn’t mean you should never retire, because you’ll have to face it one day. I have seen too many people retire after focusing solely on the financial aspects of retirement planning and then they get to retirement and it’s a social shock. Just like you planned for your retirement finances, you want to make sure you have a plan for your social life too.

So, there you have it. Just because you can afford to retire doesn't mean you should. Whether you love what you do, haven't mentally grasped the change from accumulation to decumulation, or haven't planned your social life after retirement, there are plenty of reasons to delay retirement and keep on working. It’s much better to be mentally prepared for the changes retirement brings than be caught off guard.

If you are thinking about your retirement and don’t know where to start, make sure you check out this video coming up next where I share the fastest way to retire. I’ll see you there.

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