"One More Year" Retirement Calculator

The Power of Time and Compounding

As you approach retirement, the decision of exactly *when* to stop working becomes critical. Working just a few extra years can have a surprisingly large impact on your final nest egg, often much larger than you might intuitively expect. This phenomenon is often called the "One More Year Syndrome" or simply the power of compounding in later years.

How This Calculator Shows the Impact

This calculator demonstrates the effect by projecting your portfolio's growth based on three key factors for each additional year you work:

1. Investment Growth: Your *entire* existing nest egg continues to compound based on the estimated annual return. In later years, even a modest return percentage applied to a large balance results in significant dollar growth. Unsure about your returns? Check our Investment Fee Analyzer.
2. Additional Contributions: You continue to save and invest money (your annual contribution) for each extra year worked, adding directly to the principal. Need to boost this? Try our Latte Factor Calculator.
3. Delayed Withdrawals: Crucially, each year you continue working is another year you are *not* drawing down on your retirement savings, allowing them to grow untouched for longer.

The calculator uses a standard future value formula to project growth for 1, 3, and 5 additional years.

Making the Decision

Seeing the potential financial boost from working longer can be compelling. However, the decision to retire isn't purely financial. Consider your health, desire to work, other life goals, and whether the extra money significantly improves your retirement security. If you're considering early retirement, compare your results with our FIRE Calculator.