Delayed retirement – a Viable Last-Minute Retirement Planning Choice?

It isn’t very useful when you discover financial guidance that lets you know that the most effective way to prepare for retirement is to begin saving early on, especially when you’re currently 62! And you definitely comprehend that hoping to catch up for 3 decades of not saving in the next 36 months is not possible.

This post offers some hopefulness. And some folks absolutely do that. But if you’re like a lot of us, you didn’t save as much as you could have, and now you’re looking for some last minute possibilities for a comfortable retirement.

One alternative is that, you can save far more. But that isn’t necessarily practical for some. Far more demanding needs, including paying your house loan as well as well being care bills, or helping out your kids and grandchildren, may be taxing your budget.

About fifty eight percent of U.S. residents age 55 and older have saved less than $100,000 for retirement, based on the Employee Benefit Research Institute’s latest Retirement Confidence Survey. Just 19 percent have saved $250,000 or more.  

What may be desired is simply a new perspective of retirement where you don’t retire entirely which was typical in the previous generations!   Possibly retirement means slowing down. So you’ve still got a chance to visit the friends and family and play tennis once or twice each week but you also spend some time making money.

This new characterization of retirement makes retirement a reality for people who otherwise cannot retire using the old definition. The best news is that technological innovation permits you to earn income from anywhere as the Internet and global long-distance are basically free.

Needless to say, it’s essential that you cut out any misused expenditures:

  • Does one absolutely need the hundred dollar per month fitness center or will the $19/month health club enable you to stay just as healthy?
  • Is it best to give your 40 year old son money now?
  • Would you enjoy vacation trips any less if you stay in the $150 per night resort and not the $250 per night accommodations?
  • Do you really require those cosmetic treatments (Lasik, hair replacement or tummy tucks)?
  • Isn’t that lunch room where you can purchase a meal for two for 35$ just as gratifying as the place where you spend $120?

You get the suggestion that there are likely hundreds if not thousands of dollars on a monthly basis that are squandered and this waste helps make retirement seem an impossibility. Go over the credit card statements from the last several months and see what amount of retirement money you can find.

Delaying your retirement can considerably influence your retirement finances – not simply for the reason that every year is an additional year of saving money, but for the reason that there is one less year that you need to be dependent on your retirement fund. Based on a report from Boston College, people who delay retirement by simply one year would boost their annual income in retirement by $1,317 to $2,402 per year, dependent upon whether or not they tap retirement plans. Those that hold off retirement by five years would have their annual retirement income rise nearly $1.

To consider this in easier terms: the dollar from your retirement nest egg that you don’t shell out today grows to $1.05 at five percent interest over the next year. So by doing work that extra year and not shelling out that $1, you have enhanced your standard of living from your investment portfolio by five percent.

Working part time in retirement also doesn’t have to be an endeavor you dislike. You could take part time work as a consultant in a company you know well, or even pursue a profession you constantly desired  


How much can you save by postponing retirement?



  • I think that many baby boomers will be delaying retirement. Many are already doing so. It's putting a little bit of a drag on the economy because we are not seeing job growth and the natural retirement progression but I don't think it will change any time soon.

  • YFS /


    I agree. Retirement will be delayed. I honestly think it is the new norm.

  • I totally agree that the new norm is work during retirement. The skewed view that someone could work for 30 years and then be supported by a pension for another 20 has proven unsustainable.

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