You will be richer
It might sound ridiculous, but you could boost your retirement income by as much as if you had saved an extra 1% a year for 30 years just by retiring three to six months later than your expected retirement date. At least that’s what the authors of “The Power of Working Longer,” of the National Bureau of Economic Research, concluded in their study. Where does the extra money come from? According to the researchers, the extra working months will increase your Social Security benefits, boosting your prospects for a secure financial future in retirement.
Continuing to work will also help you have longer access to annual matching employer contributions in your 401(k) plan. More than that, the longer you work, the longer you receive your salary, which can only be a good thing in the long run.
Obviously, you could sabotage everything by recklessly spending all the extra money you earn. To make sure you don’t make this mistake, check out 15 Reckless Things You Should Never Do with Your Money.
