For many Americans, the idea of continuing to work well into their 60s or 70s seems like a viable solution to ensure a comfortable retirement. According to a recent survey, nearly 27% of workers plan to work in retirement to supplement their income. However, this plan may be more of a gamble than a guarantee.

The reality is that the assumption that workers will be able to continue working into their later years is often based on a nonexistent "escape valve." Many people who plan to work longer may not have the luxury of doing so due to unexpected health complications, layoffs, or other circumstances.

The statistics are alarming. According to a 2018 Urban Institute paper, more than half of full-time workers in their early 50s are pushed out of their jobs due to layoffs and other circumstances before they're ready to retire. Of those who do find another job, many earn substantially less money, which can significantly impact their retirement savings.

While there are benefits to working longer, such as delaying drawing down savings and delaying claiming Social Security benefits, the risk of not being able to work into one's later years can be devastating. "It sounds great on paper, but reality could be very different," says Philip Chao, a certified financial planner.

Delaying Retirement: A Risky Gamble for Many Americans

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