Earlier this year, three weeks after retiring on his 100th birthday, Los Angeles County transit employee Arthur Winston died in his sleep. Winston had missed only one day of work in 72 years, and that was to attend his wife's funeral.

While Winston's achievement is one for the record books, a growing number of people claim they're following his example. According to a survey last year sponsored by the Society of Actuaries, 13% of pre-retirees say they'll never retire, up from 4% in 2001 and 8% in 2003. If the "work forever" attitude continues rising at this rate, we'll hit 100% in a little over 5 years -- right around Labor Day, 2011.

Professor of Finance Jeremy Siegel has a more plausible forecast. In the May 2005 Rule Your Retirement "Expert Corner" he predicted that the average retirement age in the U.S. will increase by about 10 years. Siegel recently renewed his prediction at the Milkin Institute's 9th annual Global Conference: "Life expectancy will continue to rise. But the retirement age will rise substantially more, I believe, from 62 today to 73 or 74 in the future."

The Benefits of Waiting

Whether your retirement decision is driven by your work ethic or limited resources, one thing is certain; if you work longer and delay nest-egg withdrawals, your retirement strategy benefits three ways:

1. More time to save. You can add to savings and make "catch-up" contributions to your IRA and 401(k).

2. More time for investments to grow. The power of compounding and the generally upward trend of markets are your partners in wealth creation.

3. Smaller nest egg required. Every year that you fund from earned income is one less year to fund from savings.

Age at Retirement	60	62	64	66	68	70
Salary at Retirement*	60,000	62,000	66,100	70,300	74,600	78,900
Nest Egg**	500,000	585,077	683,113	796,213	926,582	1,076,731
4% Withdrawal	20,000	23,403	27,325	31,849	37,063	43,069
Social Security ***	0	14,496	18,672	22,848	29,250	35,652
Retirement Income	20,000	37,899	45,997	54,697	66,313	78,721
Salary Replacement	33%	61%	70%	78%	89%	100%

   *Previous year taxable income after age 60
   **Assumes a 7% compound growth rate and a 10% savings from taxable income
   ***Estimates from the SSA Quick Calculator set to show future values

The increasing retirement income is the combined effect of nest-egg growth, which more than doubles between ages 60 to 70, and Social Security benefits, which start at age 62 and increase steadily to age 70. The normal retirement age (NRA) for someone who is 60 this year is 66. By continuing employment to NRA, our retiree would be near the top of the 70%-80% salary replacement range often mentioned as a rule of thumb retirement income target. And delaying an additional four years would put the replacement income equal to the final pre-retirement salary.

Foolish Delaying Tactics

If delaying retirement seems like a winning strategy, here are some tactics to ensure success.

• Protect your health. Prolonging your years in the workplace means staying fit. A decline in health is a common cause of unplanned retirement.

• Keep your skills sharp. The workplace is constantly changing, as is the knowledge required to be competitive. While the wisdom associated with age can help older workers stay employed, that advantage is lost if you don't evolve with your job requirements.

• Pace yourself. Work-life balance is especially important for the older worker. Whether it's the Olympic marathon, the Daytona 500, or your career, finding the right pace can mean the difference between crossing the finish line and dropping out.

• Follow the Example of Arthur Winston. While he'll be remembered for his work ethic, Winston was also a champion of frugality. When interviewed by CNN at his retirement barbeque, he offered this advice: "A person should be careful with credit cards. I don't fool with those things. I don't have to try to live above my means."

This article was originally published in the August 2006 Motley Fool Rule Your Retirement newsletter.