Delaying Retirement by Up to 6 Months Is Equivalent to Saving an Additional 1 Percent Over 30 Years

Delaying retirement for just three to six months does to the standard of living after retiring what an entire percentage point of 30 years of earnings would do, reports MarketWatch . "Working longer is relatively powerful compared with saving more for most people," states a new report published by the National Bureau of Economic Research. Working longer has such an impact on the standard of living in retirement because it bolsters two types of retirement income — Social Security benefits and 401(k) withdrawals, researchers say. The longer a person works, the longer Social Security is deferred, which means a higher benefit check. The worker's 401(k) withdrawal will also be higher from more money in the account. Social Security makes up 81 percent of retirement income in this case, the researchers said, and 401(k) payments make up the rest.