Five reasons to delay retirement 

Retiring later in life can make sense. There are many benefits to delaying retirement, such as increased Social Security benefits, and having more time to prepare financially.  Learn what to consider when it comes to retirement planning.

Is delaying retirement a smart move?

“When should I retire?” is an increasingly common question. The average retirement age in the US is about 65 for men and 63 for women. However, most people retire when they’re 66 or 67 so they can receive their full Social Security benefit.1 There are a variety of reasons why Americans delay retirement. Some are financial. Some arise from a reluctance to stop working. Here are five reasons why you might want to postpone retirement:

1. You may live longer than you think.

Consider this: A 65-year-old man has a 50% chance of living past the age of 85, and for a 65-year-old couple, there is a 50% chance that one member will live beyond the age of 92.2 This means that your golden years may last longer than you expect.

2. Your health.

A study by the Institute of Economic Affairs found that retirement causes a major decline in physical and mental health, increasing the likelihood of suffering from clinical depression and decreasing the likelihood of being in “very good” or “excellent” health.3

3. Your savings will have more time to potentially grow.

The later years of your working life are typically at your highest income level, because you are at the top of your career. And with the kids (hopefully) on their own, you can sock away more money for your retirement. Not to mention that the government allows you to make catch-up contributions to your 401(k), so the more money you can continue to put away, the better.

4. Your Social Security benefits will increase.

You’ve probably heard this one before, but Social Security offers some great benefits to those who work a few years more. For each year you delay taking Social Security, up until the age of 70, benefits rise substantially.

5. Employer-sponsored health insurance.

Whether retired or not, as we age we typically have more healthcare costs, which can lead to more out-of-pocket expenses. By staying at your job longer, you can take advantage of your employee benefits, including health insurance.

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Want to learn more about financial strategies for retirement?

A New York Life financial professional can help determine what’s right for you. 


1 Dana Anspach, “Average Retirement Age in the United States,” The Balance, March 1, 2021. https://www.thebalance.com/average-retirement-age-in-the-united-states-2388864

2 Carla Fried, “What’s Your Retirement Number? No, Not Savings – Life Expectancy,” Rate.com, June 28, 2019. https://www.rate.com/research/news/retirement-expectancy

3 Institute of Economic Affairs. England, “Retirement causes a major decline in physical and mental health, new research finds”, May 16, 2013. https://iea.org.uk/in-the-media/press-release/retirement-causes-a-major-decline-in-physical-and-mental-health-new-resea