Working beyond your planned retirement age is a popular strategy to bolster your retirement savings, but it comes with significant risks.
Unexpected factors can derail even the best-laid plans.
Extending your working years does give you more time to grow savings. Additional years of contributions to tax-advantaged accounts like a 401(k) or IRA could shine up your nest egg. In 2025, you can contribute up to $24,500 to a 401(k) (or $32,000 if you're 50 or older) and $7,500 to an IRA or Roth IRA (or $8,500 if 50+).
Delaying Social Security claims past your full retirement age (67 for those born in 1960 or later) increases your monthly benefit by 8 percent per year until age 70. For example, waiting from 67 to 70 could boost your monthly benefit by 24 percent, a significant increase given that the average Social Security benefit in 2025 is about $2,000 per month.
Despite these benefits, relying on working longer is far from a sure bet. A 2025 survey by the Employee Benefit Research Institute (EBRI) found that 48 percent of retirees left the workforce earlier than planned, with only 10 percent citing positive reasons like financial security. Instead more than 50 percent of early retirees cited health issues or disabilities.
Economic shifts, company downsizing, or ageism in the workplace can force workers out.
Many workers, especially women, exit early to care for aging parents or spouses.
A 2025 study by consulting firm Willis Towers Watson found that workers in poor health are more likely to delay retirement plans but are also more likely to be forced out early due to health-related limitations.
A safer strategy is to save more money right now by maximizing retirement contributions and building diverse income streams.
