Make savings last as long as you do

— -- Most of us would like to live long and prosper, even if we can't perform the Vulcan salute of Star Trek's Mr. Spock. But the sad reality is that it's difficult to do both.

The decline in traditional pensions means most retiring Boomers will have to rely on income from savings and Social Security. Even before the stock market slammed millions of 401(k) plans, most workers weren't saving enough to maintain their standard of living in retirement.

Consider: If a man retires at age 65, it's likely he'll live at least another 21 years, according to the Institutional Retirement Income Council. There's about a 10% chance he'll need enough money to last 30 years or more. For women, the numbers are even scarier: About 25% will live to 93 or older, and 10% will live past 98.

You could gamble that you won't live that long. But if you're wrong, you could find yourself impoverished at a time when you're too old and frail to go back to work.

If you're near retirement, you don't have a lot of time to increase the size of your nest egg. But there are steps you can take to make the money you've saved last longer.

Work longer: The average age of retirement is 64 for men and 62 for women, according to an analysis of Census data by the Center for Retirement Research. That's up from 20 years ago, but it still means that many Boomers could spend 25 years or more in retirement.

Working longer, even for a year or two, increases your retirement security in two ways. First, it gives you more time to contribute to your 401(k) or other retirement savings plan. In addition, working longer will reduce the number of years you'll need your savings to generate income.

An analysis by T. Rowe Price found that working an additional three years and continuing to save 15% of your salary could increase your annual investment income by 22%. Working an additional five years could boost your annual investment income by 39%.

Working longer doesn't necessarily mean staying at the same job. Increasingly, older workers are pursuing second careers in the non-profit sector, and some employers are helping them make the transition. Intel recently partnered with Civic Ventures, a think tank that focuses on "encore careers," to help older workers find jobs in non-profit organizations for six months to a year. Intel will provide workers with a $25,000 stipend and health insurance coverage.

Another alternative is to work part-time. Some employers offer flexible work arrangements for older employees, particularly those with specialized skills, says Marina Edwards, a retirement consultant for Towers Watson.

Before you switch to part-time or contract work, talk to human resources. Some companies don't allow part-time employees to contribute to their 401(k) plans, Edwards says.

Postpone taking Social Security: Another advantage to working longer is that you'll be able to postpone filing for Social Security benefits. Most seniors file for benefits at age 62, even though that results in a permanent haircut in their monthly benefits.