Under the Internal Revenue Code (IRC), participants in tax-qualified pension plans [most pension plans ARE tax qualified] MUST start taking "required minimum distributions" (RMDs) of their pension by April 1 of the year following the year they turn age 70½. This is referred to as the "required beginning date" (RBD), and it is very important because the penalty for failing to take an RMD by the deadline is an onerous 50% tax penalty. Ditto if you fail to take your RMD in future years. Thus, if you were supposed to take an RMD of $5,000, but failed to do so, you will have the privilege of writing the IRS a check for $2,500!
The National Bureau of Economic Research recently published a working paper that purports to answer this question. [See "The Power of Working Longer," by Gila Bronshtein, Jason Scott, John B. Shoven, and Sita N. Slavov]. With exhausting technical analysis, the authors demonstrate that working longer is a much more powerful strategy for achieving retirement security than saving more.
Callers sometimes ask me this question, and I tell them the answer depends on a number of factors unique to them. But, here are a few things to consider.
Each year, Social Security's trustees report on the current and projected financial status of the Social Security trust fund. Their 2018 annual report is worrisome. In a nutshell, the trustees conclude that the Social Security trust fund faces insolvency and resultant benefit cuts by 2034 if changes are not soon made to the program.