Besides for the benefits of still earning money instead of tapping into retirement funds, there are three additional benefits to working past 70 that many people don’t realize:
1 – The social security administration re-calculates your benefits every year based on your 35 highest-earning years. For example, if you’re age 70 and you currently have a job that pays near your highest level, you can boost your social security income by replacing your lower earning years with your current higher-earning years. While this little-known fact won’t help you if your income is closer to your lower earning years, it may be useful if you work in a higher-income profession such as law, medicine, accounting, etc.
2 – If you wait until age 70 to start taking social security benefits, you may be able to increase your benefit by up to 8% per year that you defer your benefits. This could have a significant impact on the amount of social security income that you’re able to enjoy during retirement.
3 – Experts on aging have noted that working longer can have health benefits for people who enjoy their jobs. After all, today’s retirees tend to be a lot healthier and more active than their parents were at similar ages.
Bottom line: don’t short-change yourself without evaluating all your options!