You will be richer
It sounds crazy, but simply working for an additional three to six months beyond your planned retirement date can increase your retirement income by as much as if you had saved an extra 1 percent a year for 30 years prior to ending work.
That’s the conclusion “The Power of Working Longer,” a National Bureau of Economic Research working paper. What accounts for the increased wealth? By working a few months longer, you boost your Social Security benefit. That will have positive financial ramifications for the rest of your life.
Working longer provides other undeniable financial benefits. For example, continuing to work means you’ll probably get access to annual matching funds in your 401(k) plan.
Finally — and most obviously — by working longer, you’ll bring in an income for a longer period of time. As far as we can tell, the end result of earning more money is that … well, you always end up with more money.
Of course, you could undo all that good by foolishly spending the extra cash you rake in. Before you make this blunder, check out “Stop Overspending on These 15 Things.”