Conversely, the longer you wait past normal retirement age, the higher your monthly benefits. If your assets, pension, and Social Security benefits are not enough, retiring later or taking on a part-time job may help you to bolster your income while letting your nest egg or a good portion of it grow a few more years untouched. As you near retirement, you may be inclined to divest all stocks and park everything in bonds and cash reserves. However, such a conservative portfolio probably will not be enough to cover your retirement years. This scenario ignores unforeseen emergencies, taxes, and inflation.
Inflation can be especially damaging.
Reallocate your assets according to your goals, time horizon, risk tolerance, and personal financial situation. Keep cash reserves on hand. Make sure you have money for emergencies. Hold bonds for diversification. Bonds have a higher and more durable income stream.