The Benefits of Delaying Retirement
More and more people are putting off retirement in order to increase their savings. Delaying retirement for just 5 years can increase your income and standard of living significantly. Here are several other benefits working until 70 can get you:
Bigger Social Security checks. Social Security benefits increase the longer you delay retirement. Each year you delay, your benefits are increased by 8 percent. The dollar value of your cost-of-living adjustments will also be bigger due to annual increases for inflation.
More time to save. Since your salary will most likely be larger at the end of you career, you’ll have more money to save. Older workers can also defer more in taxes in an IRA or 401(k) account, compared to younger workers.
Compound interest. Putting off retirement allows you to delay withdrawing from your retirement savings. Essentially, you’ll have more money in your savings and less time to withdraw those savings.
Fewer retirement years to finance. Working longer shortens the number of years you need to save for. This gives people who may not have saved as much early on in their careers the chance to catch up.
For more information on delaying your retirement, visit US News.