How working longer impacts your retirement

Another compelling problem is the fraying of our nation's retirement safety net -- just at the time when we need it to support a population experiencing growing longevity.

Social Security is a key part of the retirement safety net, but it will provide a smaller percentage of lifetime replacement income in the years ahead -- down from 39 percent at age 65 in 2002 to just 30 percent at 65 by 2030. This is the result of two things: 1) gradual increases in the full retirement age mandated in the last set of Social Security reforms in 1983, and 2) rising contributions to Medicare Part B premiums. It doesn't take into account possible future Social Security benefit cuts that Washington could make as the debate about federal budget deficit reduction accelerates.