How long should I continue working before retirement?

• Make sure you can afford it:  Don’t stop working until you prove you can afford to – as long as you are healthy.
• Work until full retirement age:  Aim to work at least until your full retirement age (66-67). This produces many benefits including:
  
  
  • Larger monthly Social Security payment:  By delaying taking Social Security, you will receive a much larger monthly payment, and all Social Security retirement benefits are adjusted for inflation.
  • Increased savings:  You will keep adding to your retirement nest egg instead of depleting it too quickly.
  • Health-care:  You will keep your health-care benefits longer.
• Plan ahead. Assume you must spend dramatically less once you retire. Costs will be higher and your disposable income may decrease due to inflation.
• Phased retirement:  If you are considering “phased retirement,” know what impact scaling back will have on your retirement income, health-care coverage, job security, and other life situations.
• Work part-time:  Consider part-time work as a good way to supplement your retirement income.
• Be cautious of buy-outs:  View buy-outs with caution and evaluate lump sums carefully: a lump-sum payment may be attractive, but ongoing payments could have more advantages in the long run.

More about Work:

• Advantages of working longer
• Phased Retirement
• Buy-out Offers