These advisors have new documentation to support their candid assessments. A recent study says that sometimes the best answer to making your client’s retirement plan work is simple: Delay tapping the retirement nest egg. Continue to add to it for a while by staying on the job.

A National Bureau of Economic Research (NBER) Study, “The Power of Working Longer,” quantified the advantages of staying in the workforce beyond age 62, the age at which someone can collect early Social Security at a reduced payment rate.

Looking at average one- and two-earner household savings for retirement from age 36 to 62 and contributing 9 percent to a qualified plan -- 6 percent combined with an employer match of 3 percent the study found delaying retirement from one to eight years has a “dramatic effect” on retirement savings.

“Primary earners age 62 to 69 can substantially increase their retirement standard of living by working longer,” the study said.

“For example, retiring at 66 instead of 62 increases retirement income by one third.” The study’s authors argue that “no reasonable amount of additional saving could impact the retirement standard of living so significantly.”

Why?

Delaying retirement is a multi-faceted plus, according to the study. It reduces the targeted retirement number, but working longer also has another positive effect: One needs to provide for fewer years and the potential retiree is allowing the compounding effect of his savings to go on a little longer.

That, along with bigger Social Security payments as one delays collecting, can have a huge effect on the amount of retirement savings, according to the study.

The study examined the case of various households seeking to achieve retirement saving goals. It found that most income groups benefit from delayed retirement, but that those with lower incomes benefit more by staying around the office a little longer.

What happens to their retirement income if someone doesn’t retire at age 62 and doesn’t take early Social Security? The average person’s projected retirement income would increase about 6.70 percent with a year’s delay.