There are many people for whom it would make sense to delay retirement beyond age 65. The main reason people should do this is to ensure that they will have enough additional disposable income to support their lifestyle in retirement. Anyone retiring with just Social Security and a pension should seriously consider continuing to work.

Why you should consider staying at work
Pension plans are no longer reliable, many corporations closed or canceled their plans and turned them over to the Pension Benefit Guaranty Corporation. The PBGC typically only pays a percentage of original benefits and may not provide cost-of-living adjustments. The purchasing power of defined benefit pension plans can also be quickly undermined by inflation.

This means you must have an annuity or some other source of retirement income available. Since you can now work and receive Social Security benefits, it will be easier to use a portion of your income to purchase a deferred or split annuity after age 65. This strategy can reduce your taxable income because annuities are tax-deferred and can give you another reliable source of income for retirement.

Market-Based Investing and Retirement at 65
People who plan to rely on market-based investments like stocks and real estate should also consider this strategy. These types of investments can quickly lose their value and the person totally dependent on Social Security. Anyone who relies heavily on market based products should definitely look into alternatives like SPIA annuities.

In some cases, it would make sense to sell such investments and use the cash to buy insured investments. For many people, continuing to work and using the cash to buy other investments would make sense. People with limited retirement income should definitely continue working even if they end up putting most of the income into some type of plan.

Another alternative would be to roll over the funds from an existing retirement vehicle, such as an IRA or 401K, into something like an immediate annuity. If this is done correctly, a person should not face tax penalties for doing so.

People who are heavily invested in real estate should definitely set up a guaranteed retirement investment of some kind. Real estate is not as stable or reliable as it used to be, with values ​​falling sharply between 2007 and 2011 in some areas. That means it could be more difficult to sell a property in an emergency.

Some alternatives to full-time work
It may be possible to continue working and still enjoy retirement after 65 through careful planning. Since you will receive both Medicare and Social Security, you may not need as much income. That means you could consider working part-time, doing a temporary job, or some freelance or consulting work. People in many sales or professional jobs could easily do this. A professional who receives a pension could return to work part-time and use the proceeds to purchase a deferred annuity to increase future retirement income.

Another alternative to consider would be to move to a state with a lower cost of living or move to a place with a lower cost of living near your current location. Someone could move to an area with lower income taxes, or live in a city where they could rely on public transportation instead of a car to reduce expenses. That way you could reinvest the savings in insured investments to guarantee future retirement income.