Thinking about retiring before age 65? In this video, we break down five smart reasons to consider delaying retirement just one more year before you hang it up. From boosting your Social Security benefits and 401(k) contributions to getting closer to Medicare and staying purpose-driven—these practical insights could make a big difference in both your finances and your future well-being.
📖 Transcript Below
Is One More Year Worth It? If you’re under the age of 65 and thinking about retirement, there’s a compelling case to be made for delaying retirement just one more year. Sure, retirement sounds tempting—but an extra 12 months could set you up for a significantly better financial and personal outcome.
Here are five smart reasons to consider holding off just a little longer.
Table of Contents
1. Bigger Social Security Benefits
Every year you delay Social Security—up until age 70—your benefit increases by about 8%. That’s a powerful return, especially if you’re in good health and expect to live a long retirement.
Waiting just one more year means locking in significantly more income for the rest of your life.
2. Higher Retirement Contributions (and Catch-Up Options)
More time working = more time contributing to your 401(k)—and collecting your employer match if offered. But it gets even better if you’re 50 or older.
For 2024:
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The standard 401(k) contribution limit is $23,000
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If you’re over 50, you can add a $7,500 catch-up
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And for the first time, if you’re between 60 and 63, there’s an additional $11,250 catch-up
That means a potential $34,250 contribution in one year. That’s a huge boost to your retirement nest egg.
3. Staying Engaged and Purposeful
This one might be the most overlooked: staying active and involved in something meaningful.
Many people retire early without a clear plan for what comes next—and they struggle with purpose, routine, and identity. Staying engaged another year can give you time to clarify your post-retirement purpose and avoid feeling adrift.
4. You’re Closer to Medicare (and Lower Healthcare Costs)
Delaying retirement also gets you closer to age 65, when you become eligible for Medicare. That means avoiding expensive private insurance or COBRA premiums for another year.
It’s a practical way to save thousands on healthcare costs.
5. More Time for Your Investments to Grow
Delaying retirement delays the need to withdraw from your IRAs and investment accounts. That gives your portfolio more time to compound, and even one or two extra years can have a surprisingly large impact on your long-term financial picture.
Waiting also means you may be withdrawing less from your savings each year, which helps extend the life of your retirement income.
The Bottom Line
Waiting just one more year to retire isn’t just about dollars and cents—it’s about maximizing your opportunities across the board: income, health coverage, purpose, and peace of mind.
If you’re on the fence, consider running the numbers or having a conversation with an advisor. One year might be the smartest investment you ever make.
