401(k) repair kit

Your conundrum:
Retire later or retire on less? That is the dilemma facing 401(k) investors whose savings have shrunk so drastically so late in the game. Prepare to adjust your expectations and your game plan.

Shocking fact:
More than half (55%) of workers over the age of 60 say they will probably postpone retirement, according to a recent AARP survey. Even more shocking: 68% of fiftysomethings and 70% of fortysomethings said they were likely to work longer than they had planned.

Catch-up plan:
Stay on the job. Working a few extra years can vastly improve your prospects: You can cover expenses, add to savings, and give your portfolio time to rebound.

Pitfalls:
Sticking to your pre-2008 expectations. If you've already retired, rethink your budget. Also, look for ways to postpone withdrawals. One option: Start Social Security early (you're eligible at 62), even though it will mean a smaller monthly check.

Bottom line:
Plan for longevity - and for inflation. That means keeping a portion of your portfolio in equities even after retirement.

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