Should CMS Energy Employees Consider Delaying Retirement?

'CMS Energy employees facing economic uncertainty should consider delaying retirement to enhance their financial security, not only by increasing their savings but also by strengthening social connections, which are crucial for long-term well-being.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'CMS Energy employees who delay retirement can not only improve their financial outlook by continuing to contribute to retirement savings but also gain peace of mind by making informed decisions during uncertain economic times.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

1. Strategies for delaying retirement and continuing to work during economic uncertainty.

2. The importance of maintaining a steady income stream and managing retirement savings.

3. The role of social connections and emotional well-being in successful retirement planning.

CMS Energy employees nearing retirement have recently reevaluated their plans due to economic uncertainty. These individuals face various challenges that could affect their retirement financial stability, including concerns over potential recessions, market fluctuations, reductions in Social Security benefits, and rising inflation exacerbated by global trade issues. Financial consultants and advisors recommend that employees delay their retirement and continue working if possible, to support their long-term financial plans.

This article explores strategies CMS Energy employees can consider to strengthen their retirement funds and explains why delaying retirement, if feasible, may be a prudent decision given the current economic landscape.

Handling Uncertainty in the Economy

The current macroeconomic environment presents numerous uncertainties, making it difficult for those nearing retirement to make informed long-term financial decisions. Shifting market conditions, the effects of inflation, an unstable job market, and the unpredictability of government programs like Social Security all contribute to a sense of instability. As a result, it has become increasingly challenging for many CMS Energy employees to feel confident about their retirement readiness.

More financial consultants, particularly for those in a position to do so, are recommending that employees delay retirement and stay in the workforce. According to Wes Battle, a financial consultant, staying employed during periods of economic uncertainty helps individuals bolster their retirement savings. 'Many people have never even calculated what their retirement income would be and how much it would cost to retire,' Battle states. 'Even just taking a look at these things is a positive step.' Continuing to work for a few more years provides greater clarity and increases retirement savings for those uncertain about the financial realities of retirement.

Postponing Retirement: A Practical Strategy

For CMS Energy employees still in the workforce, delaying retirement by a few years offers numerous benefits. Continued contributions to retirement accounts like 401(k)s and IRAs can significantly improve financial stability. Many individuals are already choosing to delay their retirement or return to part-time work as they work toward building a larger nest egg. In 2023, approximately 13% of Baby Boomers returned to work, a trend known as 'unretirement,' according to LinkedIn’s Economic Graph. [Source: LinkedIn Economic Graph, 2023]

Delaying retirement also allows individuals to postpone Social Security claims, which increases monthly payments significantly. Social Security benefits rise with age, typically until full retirement age, which is generally 67. By waiting to claim, retirees can receive a larger monthly benefit and enhance their long-term financial outlook.

Maintaining a Steady Income Stream

While Social Security is an important resource for many retirees, financial consultants emphasize that it should not be the primary income source for most retirees. Depending solely on Social Security may not cover all living expenses. Battle advises delaying benefit claims until full retirement age, and points out that many retirees still need part-time work to make ends meet. 'And many retirees still have to work part-time to make ends meet even after that.'

In addition to Social Security, maintaining a balanced portfolio that includes retirement savings accounts like 401(k)s and IRAs is crucial. As individuals continue to work and contribute to their retirement savings, their accounts can grow. In these uncertain times, a conservative approach to managing investments may be wise. Battle notes that retirees who adhered to their investment strategies during past recessions, like the 2008 financial crisis, now feel confident in their retirement funds.

Longevity Planning: A Holistic Approach to Retirement

Retirement planning should account for not only financial considerations but also social and emotional well-being. According to Madonna Harrington Meyer, a professor at Syracuse University, maintaining strong social ties is just as important as saving money. Life's unexpected events—such as the loss of a spouse, divorce, or health issues—can disrupt even the most meticulously planned retirement.

Building a support network before retiring should be a priority for all CMS Energy employees. Staying connected with family and friends, pursuing hobbies, and engaging in part-time work or volunteering can provide emotional support, a sense of purpose, and social interaction. Research from the University of Michigan and AARP found that one-third of older individuals feel lonely frequently, a factor exacerbated by economic downturns and the rising costs of living. As a result, maintaining strong social connections becomes crucial during retirement.

Joseph Coughlin, director of the Massachusetts Institute of Technology AgeLab, emphasizes the importance of 'longevity planning,' which includes both financial and personal well-being. 'It’s about all those little things that make you smile and contribute to your quality of life,' Coughlin explains. Planning for happiness and fulfillment is just as important as managing finances.

Mental Health and Social Support

The importance of community and social connections cannot be overstated, particularly for retirees facing economic uncertainties. Stress from financial strain can worsen existing medical conditions, making social support even more critical. A solid network of family, friends, and colleagues can provide comfort and lessen the impact of financial concerns. A comprehensive retirement plan that incorporates social engagement and community involvement can lead to a healthier, happier retirement.

Concluding Remarks: Building a Better Retirement Outlook

In conclusion, delaying retirement can provide both emotional and financial benefits for CMS Energy employees. By choosing to continue working or returning to part-time employment, individuals can increase their savings and create a more robust financial future. Managing retirement savings, delaying Social Security benefits, and maintaining strong social connections can help employees navigate uncertain times and ensure a fulfilling and financially stable retirement.

Financial consultants recommend taking a thoughtful, balanced approach to retirement planning. By reviewing savings, understanding expected retirement income, and adjusting plans as needed, CMS Energy employees can safeguard their financial outlook. Equally important is prioritizing social engagement, mental health, and community, which are essential for a satisfying retirement experience.

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Sources:

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• 2. Henderson, Kim. 'How to Live Your Best Life as You Age.'   Morgan Stanley , 11 Apr. 2025,  www.morganstanley.com/how-to-live-your-best-life-aging .

  • 3. Munichiello, Katrina Ávila. 'Should You Invest in the Market During Retirement?'   Investopedia , 18 May 2025,  www.investopedia.com/investing-market-during-retirement .

    • 4. 'Americans in Their 80s and 90s Are Redefining Old Age.'   The Wall Street Journal , 18 May 2025,  www.wsj.com/americans-in-80s-90s-redefining-old-age .

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