Five reasons not to retire

Although many people have little option but to work longer, others may do so to boost their retirement options at a later date. Either way, there are built-in financial pay-offs for retiring later.

1. Earnings

You can carry on earning an income, protecting your savings and giving your capital more time to grow. The state pension is more generous for people who defer taking it, paying an extra 10.4% for every full year of deferral.

2. Improved annuity rates

Annuity rates tend to improve for people who retire later. For example, a £100,000 pension fund would currently buy a level annuity income of £5,563 for a healthy man aged 65, but if he bought it aged 70 it would be worth £6,368.  

Find the best annuity rate for your circumstances

3. Medical conditions

Older retirees are more likely to have developed a medical condition that means they qualify for an enhanced annuity which pay higher rates than conventional annuities.

4. Part-time role

Working into retirement doesn't mean you have to stick with the 9-5. "More and more people will see the benefit of moving to part-time work rather than retirement, or will choose to 'monetise a hobby', taking part of their savings to plug the gap that less work leaves," predicts David Millar, corporate benefits marketing manager at pension provider Friends Life.

He suggests several ways of boosting reduced earnings, including income drawdown, using part of your pension to buy an annuity and leaving the rest invested, using ISA savings, or using one pension and leaving another to grow.

5. Healthy mind, healthy body

Working in retirement isn't just about boosting your income. Research from Prudential revealed that 55% of people planning to retire this year would like to extend their career to keep their mind and body healthy.

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Your Comments

Who wants to work longer to boost retirement funds?
Private pension is the way to go. I would have  retired at 55 . Luckily I retired at 60 before Royal mail moved the goal posts to 65!! 
Fancy having to work until 68 till you get State Pension!
The MP's new of the problem over 10 years ago but did nothing beause it would not have affected them much.
It is ok for people on £100K plus. The pension will just be a bonus, but for ordinary people on say £25/40 K what about them/
If they want to retire early, say 60/65 hen they should be given the option to pay more towards your state pnsion.  68! the man will be dead by 75!

This seems to be a report written by the government - delay taking your pension???
Are you completely bonkers?

Try working out how long you have to live to get back the amount you didn't get in the frist year. That should start a few thoughts rumbling. Deferring your pension is all to the advantage of the provider.
I was lucky, went at 60 and have found increasing health issues meant that I would have been retired on ill helath grounds long before 65!