Could Remote Work Delay Your Retirement?
Remote work is terrific for your health and income. You're also likely to retire later, which might convince your employer to let you work from home.


You may dream of early retirement, but remote work can make extending your career a tempting option. It turns out that working later in life can have significant benefits for both your health and finances. If your employer is pressuring you to return to the office, or if you want to negotiate your way to a work-from-home (WFH) position, there's new data to show the advantages to you and your employer.
These benefits are not trifling. The Journal of Epidemiology and Community Health found that those who worked just a year beyond retirement age had a 9% to 11% lower risk of dying during the 18 years the research covered, regardless of health. And the National Bureau of Economic Research revealed that delaying retirement from 66 to 67 could increase retirement income by 7.75%.
For employers hoping to retain talent, older workers who can work remotely, at least part-time, are less likely to retire. That can save employers on hiring and training costs for new employees.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Remote work opens the door to late retirement
Before the COVID-19 pandemic, only around 6% to 8% of employees worked remotely. The number of remote workers more than tripled in 2020, and although it has declined since, twice as many people now work from home compared to before the pandemic.
Remote work changed many aspects of life, but a new study from the Center for Retirement Research also revealed that it's making later retirement not just possible, but much more likely.
CRR used data from the Current Population Survey to determine the impact of working remotely on retirement. Researchers focused on people aged 55 and up who were employed and had no major health issues. The study controlled for the fact that remote employees often have higher salaries, do less physical work, and have more education. Still, CRR found that working remotely had a meaningful impact on retirement choices.
In fact, someone who works remotely was 1.4 percentage points less likely to retire compared with an employee in a similar position who commuted to the office. Based on the retirement rates of those included in the research, this reduction in the likelihood of retirement represents a 14.4% decrease.
Remote work had the third-largest marginal effect of any characteristic on the likelihood of retiring within the upcoming year. Astoundingly, working from home made an employee less likely to retire than a doubling of weekly earnings, working in a physical industry or having dependent children. Only working part-time or a spouse retiring played a bigger role in the likelihood of someone leaving their job.
Why does remote work allow for later retirement?
The Center for Retirement Research doesn't delve deeply into why working remotely makes someone more likely to stay on the job. However, researchers suggest "the flexibility and ease of commute offered by remote work could encourage late-career individuals to work longer and delay retirement. "
A considerable amount of other research shows that a shift to remote work has allowed more people with disabilities to find and maintain gainful employment. This could suggest that older workers are more likely to stay on the job if they develop health issues, when medical problems may have otherwise prompted retirement.
Remote work also opens the door to relocating without having to retire. Harvard Researchers assessing the impact of a 2012 work-from-home experiment found that workers who were older and closer to retirement age were more likely to relocate to retirement-friendly destinations in Florida and Texas once working from anywhere became possible.
If workers have more flexibility in when, where, and how they work; can save commuting time; and can live where they'd like, it's not a surprise that they'd be more amenable to staying at their jobs.
Regardless of the reasons, though, it's clear that remote work has an impact on retirement and that later retirement can have positive effects. Those nearing retirement age may want to explore the possibility of going remote if they're hesitant to give up their careers entirely, but want an easier workday as they approach their final day of work.
Read More
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Christy Bieber is an experienced personal finance and legal writer who has been writing since 2008. She has been published by Forbes, CNN, WSJ Buyside, Motley Fool, and many other online sites. She has a JD from UCLA and a degree in English, Media, and Communications from the University of Rochester.
-
Are COVID Shots Still Covered By Medicare?
Getting the new COVID-19 vaccine covered by Medicare isn't as easy this year as it was in the past. Here's what you need to know before you take a trip to your pharmacy.
-
How Digital Platforms Are Changing the Way You Invest in Gold
Investing in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
Confused About the New COVID Vaccine and Medicare? What You Need to Know
Getting the new COVID-19 vaccine covered by Medicare isn't as easy this year as it was in the past. Here's what you need to know before you take a trip to your pharmacy.
-
How Digital Platforms Are Changing the Way You Invest in Gold
Investing in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams Now
Beyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Want To Retire at 55? See If You Can Answer These Five Questions
Who said you can’t retire at 55? If you say yes to these questions, you may be on your way to an early retirement.
-
I'm 57 With $4.1 Million and Plan to Retire Abroad in a Few Years. Can I Stop Contributing to My 401(k)?
We ask financial experts for advice.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on Retirement
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for Retirement
Saving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?