A foremost and favorable implication that arises from delayed retirement benefits is the increased social security income you will lay claim to as soon as you stop working. How long you delay your retirement is considered and factored into the calculation of such benefits. For instance in the United States, social security retirement benefits increase in relation to the number of years you delay your retirement and only ceases when you turn 70 years of age.
There are other benefits besides the increased social security retirement credits you become entitled to and enjoy as a result of postponing your retirement over a significant period of time.
Adds more money to your savings
Delaying your retirement means you will still be involved in a full-time or part-time job and thus be able to earn more money and be able to add a substantial chunk to your retirement savings. You can also make good use of the few years you have left to become retired and go searching for other income earning opportunities, provided they won’t interfere with your current occupations, to shore up your financial position and improve that inevitable retirement.
These benefits are vital and adequately prepare you and strengthen your financial standing before you finally retire.
Growth in your retirement portfolio
The more years you spend in active work prior to retirement, the more you increase the financial benefits to be derived from your investment portfolio.
You will get more money from your current occupation to put into your portfolio and also, be able to reinvest accruing dividends.
Increase in other Pension Plan benefits
These are similar to delayed social security credits. Benefits derived from Pension plans also increase in relation to the number of years your retirement is delayed.
It is thus financially savvy to delay your retirement and continue working (as long as your health can withstand it) and see the benefits that you will be entitled to when you finally retire increase.
More time to plan and prepare for retirement
When you delay your retirement (say for three years or more), you do not only increase benefits that you will derive from social security and any other retirement plan, but you also afford yourself the room and time to put finishing touches to your plan for retirement. For instance, you will have enough time to negotiate with potential buyers for possessions that you may not need to use any longer and get set for retirement.