7 Reasons to Keep Saving in Retirement


Retirement is not an easy thing to plan for, as you don’t know how long you’ll live or precisely how much your expenses will be year after year. Preparing throughout your career can help ensure a comfortable retirement.

However, there are plenty of reasons why you shouldn’t completely stop saving once you retire. While you may not be working, you may have ways to save and invest more even during your retirement years—here are 7 reasons why it’s a good idea.

Social Security won’t last forever

Social Security is on track to be significantly underfunded over the coming decades. Due to changes in workforce and retirement demographics, those in the U.S. who plan to rely on Social Security won’t be able to count on full benefits by 2035.

Therefore, those who can should save more in other investment vehicles like IRAs and taxable brokerage accounts to make up the difference in Social Security benefits.

Delaying Social Security means higher payments

If you’re already retired but still have a few years before you reach maximum Social Security benefits, try to live off other accounts as long as you can. Delaying Social Security benefits by months or years incrementally increases your payouts once you start taking disbursements.

Of course, you run the risk of not living long enough to reap the most rewards from the system you’ve paid into. But you also may face higher expenses several years into retirement due to declining health, so holding off on Social Security payouts can be a real advantage.

Invest in a company you care about

You can find a new passion by investing even a small amount in a company or industry that matters to you. Perhaps you’re interested in environmental preservation, technological innovations, or supporting minority-led businesses. Finding reputable organizations or companies to support with your money is one way to do that.

Invest in someone you care about

If you keep saving in retirement, you could put some of those funds to good use by investing in a person you care about. You might earmark some of your savings for a grandchild’s higher education, for example, or save money in an account to help them with their first house down payment. Or start a scholarship fund for local students to give your investments greater purpose.

This is another way to think about saving or investing—funneling your money into building your legacy through a loved one.

Retirement expenses are unpredictable

In retirement, no matter how many projections you make about your investment returns and your annual expenses, you won’t get it perfect. Expenses can increase suddenly, without warning. Keep growing your emergency funds and other accounts while you can to help cover any unexpected costs you’ll incur along the way.

Save to fund a fun retirement

By investing even after retirement, you may be able to take advantage of a good market and increase the value of your investments in a few years’ time. Of course, you want to spend your retirement money in the present, but don’t be afraid to sock a bit more away in the early years to make the later retirement years more enjoyable.

Just as there may be unexpected hard expenses, like for medical care, you may want a stronger portfolio to fund exciting adventures in retirement.

Save and invest for the thrill of it

Investing can be a fun activity during your retirement. In addition to perfecting your golf swing or learning to do the DIY projects you never had time for, why not put some of your extra retirement hours into learning more about investing?

Investment research can keep your mind active and focused during retirement. Perhaps you have enough money left over after expenses to “play with” and experiment with new markets or alternative investments. Have fun investing, as long as you don’t risk more than you can afford to lose.

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