One way to think about working longer is this --
One Year Buys You THREE
Retirement Years.
Each additional year of work provides you about three years of retirement?
Year One --
The first additional year of retirement is the one
that you worked through! Get it?
You worked, you earned money, and lived off those earnings. This means you have one year less to finance from your savings.. right?
Year Two --
The next year is funded with the money you didn't need
last year when you worked.
It would have been long gone last year as you used it.. but now its still there to fund your first year of retirement.
Year Three --
The third year might be thought about like this: (1) you'll draw a higher amount from your monthly Social Security benefit because of the retirement delay, and (2) you earned some investment returns on your funds that were invested the extra two years (years one and two).
Just another way to consider why working longer WORKS for you!
More on Working here.