In the aftermath of the 2007-2009 financial crisis and "bear market" (i.e., stock market decline), several financial industry firms ran computerized simulations of various retirement recovery strategies. Their agreement was that two of the most effective catch-up strategies are working two to three years longer than planned (or working at least part time after you retire) and postponing the collection of Social Security benefits until full retirement age (e.g., age 66 for workers born between 1943 and 1954). If market conditions keep the share prices of stocks and mutual funds low and if you are at an age where you still have several years to realize gains, you may be able to buy stocks and mutual fund shares at very attractive (low) share prices. When markets eventually rebound, your low-cost shares will increase in value. "Buying low and selling high" is a key wealth accumulation strategy. By working longer, there is more time for investment account balances to rebound and grow and for workers to make additional retirement savings plan contributions. Additionally, Social Security and pension benefits may increase with extra years of service. Even more importantly, by working longer, employed investors can postpone retirement asset withdrawals because they’re still earning a paycheck. Combine all these effects with a healthy dose of compound interest, and it is still possible to accumulate a sizable nest egg and/or recover from bear market losses without having to increase annual savings deposits or take on more investment risk than you are comfortable with. We would like your feedback on this Personal Finance Frequently Asked Question.

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