Four reasons to delay your retirement past age 65
Like many people, you may be looking forward to the day you can retire from work. You may even be thinking about retiring a few years early, but have you ever thought about the potential benefits of retiring a bit later in life? Here are four reasons to consider delaying your retirement until after age 65.
Delaying your retirement can offer several benefits, especially if you’re not sure what you’ll do with all your free time once you stop working. Whether you just want to spend a few more years working at a job you love or to have more time to save, delaying retirement may be an option for you.
1 Continue earning a little longer
Learning to live with less income can be one of the hardest things about retirement. Delaying your retirement date means you can keep earning employment income. You’ll also have more time to contribute to your 401(k), your IRA, and any other retirement savings accounts you have available to you.
2 Benefit from your benefits
If you have access to health benefits through your employer, you’ll continue to enjoy the benefits of your plan while you work. And if your spouse also qualifies for your health plan, it may be another important advantage of working a bit longer.
3 Earn higher Social Security retirement benefits
If you’re 65 or younger today, then you haven’t yet reached your full retirement age for Social Security retirement benefits. You can start getting your benefits as early as age 62, but you only receive your full benefits when you reach your full retirement age. If you wait to take your benefits until after your full retirement age, up to age 70, then the amount you receive each month is higher. If you decide to take your benefits early, the amount you receive is reduced by a small percentage for each month before reaching your full retirement age.
What’s the full retirement age for Social Security retirement benefits?
| Year of birth | Full retirement age |
| 1943–1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 or later | 67 |
4 Keep enjoying meaningful work
If you love your job, you don’t have to say goodbye to it as soon as you turn 65. You could think about gradually reducing the number of hours you work each week if you’re somewhat ready to retire but still want to enjoy the fulfilling aspect of going to work. This may help you slowly phase into retirement.
Working after age 65
Delaying your retirement until after age 65 may be something for you to consider if you enjoy your job and don’t feel ready to stop working. Working longer gives you more time to save for retirement while taking advantage of benefits from your employer such as health insurance. Postponing retirement allows you to receive higher Social Security benefits. You can work with a financial or tax professional to help you decide when you should retire.
Important disclosures
Important disclosures
The content of this document is for general information only and is believed to be accurate and reliable as of the posting date but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Consult your own independent advisor as to any investment, tax, or legal statements made.
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