A recent survey by Charles Schwab found that 95% of baby boomers say they won’t be willing to spend less in retirement. According to the Schwab survey people are coming to the realization that they want to have a good lifestyle in retirement even if it means they have to save more and work longer. Some of the frugality of the post 2008 meltdown appears to be wearing off. Some other survey figures show that 47% of workers age 65 and over are prepared to work in retirement.

Against the backdrop of those survey results it makes sense to look at some ways that boomers can maximize their income when they plan to work longer than perhaps they originally planned.

1. Take Advantage of Your Salary Benefits. As long as you are making a salary you can continue to contribute to a retirement plan i.e. 401(k) or IRA. It’s a good idea to max out your contributions if possible. That way your accounts can continue to grow and take advantage of time and compounding before you start drawing on them for income once you retire. On the debt side you can also start using your salary to pay down debt before retirement. This will help lower your expenses once you retire.
2. Higher Social Security benefits. As a general rule waiting to take Social Security benefits makes sense. Applying for Social Security benefits at normal retirement age produces a 25% higher benefit than applying for early benefits at age 62. If you wait until age 70 you will more than double the benefit compared to taking benefits at age 62. Keep in mind that Social Security is based on your highest 35 years of earnings. So if you work longer at your peak earnings you can replace some of those zero earning years early in your working life. You can get more details on Social Security in my FREE Guide to Social Security.
3. Higher pension benefits. If you are fortunate to have a pension then your ongoing employment will likely boost your retirement payout since most pension payout formulas account for earnings and years of service. If your company has a 401(k) with a match you can continue to earn that match the longer you work. Again, put time and the compounding effect to work for you.
4. Save on health insurance premiums. Always a big concern. Prior to Obamacare delaying retirement to ensure continued company-paid health care was an important consideration. Even with Obamacare affording pre-65 healthcare coverage can still be a concern. The chances are your company-provided plan is less expensive than an Obamacare plan.

Not everyone will be able to work longer to help finance retirement. The number one reason people are forced to retire early is health issues. Still, many boomers will decide to work in retirement by choice as well as by necessity. In either case it makes sense to take advantage of the benefits of earning a salary pre and post retirement. Plan well. Live better and enjoy retirement on your terms by taking advantage of the time you have now to finance it.

Time Out! How do you feel about working longer to finance your retirement? You can leave a comment here.