by Dr. G. A. Anderson

Created on: July 30, 2011

The benefits of delaying your retirement are more important than ever as we look at what's happening to our country's financial situation and the very real financial problems many people are facing or will in the near future. If Social Security is indeed going broke, delaying retirement will be not just an option, but a necessity for a vast number of workers approaching retirement age. There are many more reasons to delay retirement and more benefits to be gained.

Retirement: Why delay it?

Everyone looking ahead to retirement should take into consideration the fact that the amount of Social Security payments will depend on their age when they retire. Earlier retirement results in lower benefits each month. Those who retire at 62 will receive as much as 30% less in benefits than those who work until the full retirement age of 70. (Current discussions on spending cuts in D.C. include upping full retirement age.) There are those who claim that if a worker retires at 62, they collect benefits for a longer period of time, therefore equaling the amount received in the long term.

Senior Magazine Online reports that Social Security benefits are only one of the reasons to extend your working years. Market downturns, fading traditional pension plans, high unemployment numbers and fewer jobs to go around are all valid reasons people are working in their current positions longer - adding years onto careers and jobs in the workplace instead of taking retirement at the earliest age possible. 

If you have a nest egg in place and you continue to work, it will keep growing. You may be able to retain your health benefits through your employer if you keep working. Delayed withdrawals from tax-deferred benefit plans keeps money increasing, and it's tax-free. Beyond those benefits, your Social Security benefits will grow with each passing month you stay employed beyond your full retirement age, barring any restrictions that may apply.

Downsizing: There's more time to plan this crucial step if you delay retirement

Before you retire, you may want to consider reducing the cost of living, and downsizing may be one of the options to explore. It is never an easy decision to relocate, but many retirees look forward to other living arrangements with less expense and less work. This can be a very real benefit of delaying retirement, giving you more funds to work with after choosing another home, providing adequate time get comfortable in your new location, and getting organized in

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