Working one more year before retirement often feels like the responsible choice. After all, one extra year of income can seem like added safety. However, many retirees discover too late that this decision comes with a hidden cost that has nothing to do with money. While your savings may grow, your health, energy, and freedom do not. Understanding this tradeoff is critical before you delay retirement again.
Why People Delay Working One More Year Before Retirement
Before looking at projections or account balances, it helps to understand the real reason people keep working. For most, it is not financial. Instead, it is emotional.
Many people tell themselves that working one more year before retirement will finally make them feel safe. Unfortunately, that feeling rarely arrives. One extra year quietly turns into another. Over time, work becomes more than income. It becomes identity, routine, control, and certainty.
Here is a simple test. Ask yourself this question honestly. If you had an extra $50,000 saved today, would you retire now or still wait? If you would still wait, then the issue likely is not money. It is confidence.
Retirement Does Not Happen in One Long Phase
Most people picture retirement as 20 to 30 years of steady health and freedom. In reality, retirement unfolds in stages.
First, there are the go-go years. These are usually the first 5 to 10 years of retirement. During this time, you have the health and energy to travel, hike, cycle, and fully enjoy life.
Next come the slow-go years. You remain independent, but your pace naturally slows. Long trips become shorter. Activities require more planning and recovery.
Finally, there are the no-go years. At this stage, health limitations restrict travel and physical activity.
This matters because every year you delay retirement does not come evenly from all three stages. Instead, it comes almost entirely from your go-go years. When you choose working one more year before retirement, you are often trading away your healthiest and most flexible year.
The Hidden Cost of Working One More Year Before Retirement
On the surface, delaying retirement looks like a fair trade. One more year of work might add $40,000, $60,000, or even $100,000 to your savings. That seems responsible.
However, people often price the money correctly and underprice what they give up.
Those early retirement years are when travel is easiest. Energy is higher. Experiences are richer. Meanwhile, the extra money earned late in your career often does not change your lifestyle. In many cases, it simply stays invested and eventually becomes part of an estate.
As a result, working one more year before retirement can mean giving up your most valuable time for money you may never truly use.
A Real-Life Perspective on Delaying Retirement and Regret
Ask someone in their late 70s or early 80s what they wish they could buy. Almost no one says a bigger house or a nicer car. Instead, they wish they could buy time.
Unfortunately, time is the one thing money cannot replace. Once your healthiest retirement years are gone, they are gone for good. This is why delaying retirement carries a risk that spreadsheets cannot capture.
Signs You May Be Ready to Retire Without Working One More Year Before Retirement
Many people believe retirement readiness is a number. In reality, you are often ready before you feel ready.
You may be closer than you think if several of these signs are present. Retirement is something you think about often, not just someday. You feel drawn to hobbies or projects outside of work. Work drains you more than it fulfills you. You want more time with your spouse or family. You already have enough for a good life, even if it is not perfect.
If three or more apply, your delay is likely about confidence, not finances.
Planning Retirement the Right Way
Rather than defaulting to working one more year before retirement, a better approach is intentional planning. This includes aligning your financial plan with how and when you actually want to live.
Our Atlas system helps retirees transition from work to retirement in a tax-efficient and structured way. It focuses on clarity, confidence, and timing, not just account balances. If you want help evaluating whether delaying retirement truly benefits you, this framework can provide answers.
Final Thoughts
Working one more year before retirement may feel safe, but it often comes at the cost of your best years. While money can grow later, health and energy cannot. A successful retirement is not just about how much you have. It is about when you use it.
If you want help determining whether now is the right time to retire, explore our Retirement Toolkit and Atlas planning system. The right decision today can protect both your wealth and your time.
For practical tips, real-life examples, and strategies you can use today, visit the Trans Canada Wealth Management YouTube channel and subscribe for regular retirement insights.
