From Forbes — 

As clients get older, they often start to feel obligated to retire. They love working, but they are 65 or older and all their friends are doing it. The traditional concept of retirement is called a “cliff retirement” because it is so abrupt. One day you are working full time, and the next you are recreating full time.

However, there are many social and health benefits to delaying retirement and continuing to work. We all need meaning and significance in our lives. We all need close social relations. For many of us, work provides these. It is not simply what you do in order to make money; it is your vocation.

In addition to these benefits, there are also significant financial benefits to delaying retirement. Continuing to work for five more years could increase your retirement standard of living by as much as 50%.

Imagine a client who has a $1 million portfolio and is able to retire at age 65. Using our maximum safe withdrawal rate percentage for age 65 of 4.36%, that means that she has a $43,600 annual standard of living.