It depends on your individual circumstances. Health, financial readiness, job satisfaction, and family considerations all play a role. If you enjoy your work, feel financially uncertain, or want to strengthen long-term income, delaying retirement may be a practical choice.
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Reasons to delay retirement
Retiring later in life can be a strategic choice rather than a setback. For many people, delaying retirement offers meaningful advantages—from higher Social Security benefits to more time to strengthen savings and plan for long-term needs. Understanding the financial, health, and lifestyle considerations when it comes to retirement planning can help you decide whether postponing retirement aligns with your goals.
Key takeaways:
- Delaying retirement can increase lifetime Social Security benefits and extend the longevity of your savings.
- Continuing to work may support better physical, mental, and financial well-being for some individuals.
- The decision to postpone retirement depends on health, finances, career satisfaction, and personal priorities.
Reasons to postpone retirement
“When should I retire?” is an increasingly common question, and the answer is no longer one-size-fits-all. While the average retirement age in the U.S. is still in the mid-60s, many people choose to work longer to improve financial readiness and maintain stability.¹ Waiting until full retirement age—66 and several months or 67, depending on your birth year—allows you to receive your full Social Security benefit, and delaying beyond that can further increase monthly payments.² For some, the decision is financial; for others, it reflects a desire to stay engaged, productive, and prepared.
1. You may live longer than you think you will
One reason to delay retirement age is longevity. According to Social Security Administration data, men who reach age 65 can expect to live, on average, into their early 80s, while women often live into their mid-80s.³ This extended lifespan means retirement may last 20 years or more, increasing the likelihood that savings will be stretched. Delaying retirement age can provide additional earning years and reduce the risk of outliving your assets.
2. Your health
Health considerations are not only physical; they are emotional and social as well. Research suggests that the transition into retirement can be associated with increased health risks, particularly in the first few years, due to changes in routine, activity levels, and social engagement.⁴ For some individuals, continuing to work supports structure, purpose, and connection, all of which may contribute to overall well-being. If work helps you stay active and engaged, postponing retirement may allow for a healthier transition when the time feels right.
What are some benefits of delayed retirement?
Beyond lifestyle considerations, delaying retirement can offer tangible financial advantages. Working longer may allow your savings to grow, reduce the number of years those savings must support you, and increase guaranteed income sources. For many people, these benefits translate into greater flexibility and financial confidence during retirement.
1. Your savings will have more time to potentially grow
During the later years of your career, earnings are often at their peak, which may create opportunities to save more aggressively. Individuals age 50 and older are eligible to make catch-up contributions to employer-sponsored retirement plans, allowing them to save beyond standard limits.⁵ At the same time, delaying withdrawals gives existing savings more time to potentially grow, strengthening overall financial resilience.
2. Your Social Security benefits will increase
Delaying Social Security benefits can significantly increase your monthly income for life. For each year you delay claiming benefits beyond full retirement age—up to age 70—your benefit increases by approximately 8%.² Delaying Social Security benefits may be especially valuable for individuals who expect a longer lifespan or want to maximize guaranteed income later. Even after claiming, some people continue working, allowing earned income and benefits to work together.
3. Employer-sponsored health insurance
Healthcare costs typically rise with age, making coverage an important factor in retirement timing. By continuing to work, you may retain access to employer-sponsored health insurance, which can help manage costs before Medicare eligibility.⁶ Delaying retirement may also reduce the need to draw from personal savings for medical expenses, helping preserve assets for future needs.
Postponing retirement FAQs
Delaying retirement means continuing to work beyond your full retirement age rather than exiting the workforce at the earliest eligible time.
A delayed retirement age is any age beyond full retirement age, which depends on birth year. For individuals born between 1955 and 1959, full retirement age ranges from 66 and two months to 66 and 10 months. For those born in 1960 or later, full retirement age is 67.²
Health is the most important consideration. If work-related stress, physical demands, or medical issues interfere with self-care, delaying retirement may not be advisable. Some people also value having active, flexible years free from work obligations. Weighing health, finances, and personal goals is essential before deciding to work longer.
There is no lump-sum payout for delayed retirement credits. Instead, credits permanently increase your monthly Social Security benefit when you claim.²
Deferred retirement typically refers to delaying the start of benefit payments, while postponed retirement refers to continuing to work beyond full retirement age.
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1U.S. Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey, https://www.bls.gov/cps/cpsaat11.htm
2Social Security Administration, Delayed Retirement Credits https://www.ssa.gov/benefits/retirement/planner/1943-delay.html
3Social Security Administration, Life Expectancy Calculator
https://www.ssa.gov/oact/population/longevity.html
4Harvard T.H. Chan School of Public Health, Is Retirement Good or Bad for Health? https://www.health.harvard.edu/blog/is-retirement-good-for-health-or-bad-for-it-201212105625
5IRS, Retirement Topics—Catch-Up Contributions
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-catch-up-contributions
6Kaiser Family Foundation, Health Costs and Coverage for Older Adults
https://www.kff.org/medicare/