Thinking of Delaying Your Retirement? You’re Not Alone—Most People Over 50 Are Pushing It Back

Deciding to delay retirement is a question of lifestyle or interests for some. One third (33%) of those who responded to the F&G survey said they were planning to delay retirement or unretire because they are worried about a lack of purpose in their lives. Another 42% said they enjoy the challenge and mental stimulation that comes from working. (Respondents could pick more than one answer.)

But the biggest reason is financial. More than half of those who are delaying retirement or returning to the workforce are worried about their financial situation. They don’t think they have enough saved and want more financial flexibility in a volatile economy.

Pros and Cons of Delaying Retirement

Like any other financial decision, delaying retirement or leaving retirement to return to the workforce comes with both pros and cons. If you are trying to decide whether continuing to work is right for you, you will need to consider all of them.

Pros of Delaying Retirement

• Delayed Social Security benefits: If you work instead of starting Social Security benefits, you’ll receive larger benefits when you do claim them. The Social Security Administration adds 8% to your benefit for every year you delay claiming Social Security beyond your full retirement age.
• More time to save: Continuing to work for longer means more time to put money in tax-advantaged retirement accounts, such as a 401(k) or an individual retirement account (IRA). In 2025, contribution limits are $23,500 for a 401(k), 403(b), or 475 plan; or $7,000 for an IRA.
• Catch-up contributions: Not only will you have longer to save, but delaying retirement also gives you longer to take advantage of catch-up contributions. In 2025, those age 50 and older can contribute an extra $7,500 to a 401(k) or similar plan, and an extra $1,000 to an IRA. If you are ages 60-63, you can contribute even more: up to $11,250 to a 401(k) or similar plan instead of $7,500.
• Financial adaptability: Living on a fixed income means less financial flexibility. The longer you continue to work, the more flexible your finances will be, allowing you more options for handling emergencies or surprise expenses.

Cons of Delaying Retirement

• Physical and mental challenges: As you age, you may find yourself experiencing more challenges to your physical and mental health. This can make it harder to continue working full-time, especially in a career that is physically demanding, requires long hours, or comes with a lot of travel.
• Difficulty finding work: If you are changing jobs or reentering the workforce after an early retirement, you may find that your age negatively impacts your ability to find work. A study by AARP found that more than two-thirds of workers over age 50 reported seeing or experiencing age discrimination in the workplace.
• Family needs: A 2024 poll from the University of Michigan found that 8% of grandparents provide daily or near-daily care to grandchildren, while an additional 20% provide care at least once a week. If you have family members who need or want help caring for small children, returning to work can prevent you from taking on that role, even if you want to.
• Delayed personal plans: Many retirees hope to travel or pursue personal hobbies and activities in the first half of their retirement, when they are younger and healthier. Working for longer will likely mean that you have to put these personal plans on hold until much later, or even abandon them entirely.

Should I Delay My Retirement?

Whether or not you should delay retirement or rejoin the workforce depends on your financial situation, health, and interests. There are many reasons to continue working longer than you once expected to, including the fact that people are living longer.

A 2020 report released by the Census Bureau found that, from 1960 to 2017, life expectancy in the U.S. increased by 10 years, from 69.7 to 79.7 years old, and is expected to continue increasing. A longer life might mean you need or want to continue working longer than previous generations did.

However, the choice doesn’t have to be between working full-time and stopping work completely. According to Jamie Kertis, CPFA, a financial advisor and retirement plan specialist at Everthrive Financial, many retirees find that part-time work is a fulfilling way to stay engaged with their communities and pursue long-standing interests while maintaining some financial flexibility.

“If you love golf, consider being a marshal,” Kertis said. “Love animals, you might enjoy working at a pet store. The possibilities are endless.”

Or, according to Kertis, you can choose to freelance or start a side hustle to make extra income, especially if you don’t want to commit to a regular work schedule during your retirement years. Many retirees take on flexible work like tutoring, handicrafts, babysitting, or consulting in their former field of work. The important thing is to start planning early to understand both your emotional and financial needs.

“By visualizing your retirement, you [can] better determine how much you need to save,” Kertis said.

The Bottom Line

Many of those over age 50 are planning to delay or have delayed retirement for a variety of reasons, but most often due to financial need. A later retirement means more time to save and greater financial flexibility, but it can also take a toll on your physical and mental health, among other challenges.

Part-time or freelance work is an option that many retirees take. If you are unsure whether you have saved enough for retirement or need to work longer, talk with a financial advisor. They will be able to assess your financial situation and retirement goals and help you create a plan for both.