Does working longer really help your retirement? Advisers weigh in

Key Points:

• Confidence in having enough money for retirement among Americans dropped to 61% in 2025, leading many to plan for later retirement or never retiring, according to a survey by the Employee Benefit Research Institute.
• Financial advisers emphasize that successful retirement planning requires understanding spending needs, investment allocations, Social Security claiming strategies, and tax implications rather than simply working longer.
• Social Security benefits can be reduced if claimed before full retirement age (67 for those born after 1960) and if earnings exceed annual limits, while delaying benefits past full retirement age increases payouts up to age 70.
• Medicare premiums depend on income levels from two years prior, and additional work income can significantly increase Part B premiums; retirees also face tax considerations on withdrawals from tax-deferred accounts and combined income.
• Key retirement readiness benchmarks include saving 10-12 times final salary by age 67, replacing 70-80% of pre-retirement income, and planning for health and long-term care costs, which remain a major unmet need among retirees.