Few people felt calm about Wall Street s autumn free fall, but the country s legions of retirees and near-retirees had the most to worry about. The market s crash has erased nearly $4.8 trillion in retirement savings over the past year during one stretch in September and October, it stripped about $65 billion a day from America s collective nest egg. Simply put, anyone counting on those investments for income will have less to spend at a time when retiree budgets already face the strains of rapidly rising health care costs and the possibility of higher taxes.

So when it comes to retirement planning, it s time for some fast thinking. The key, according to most financial planners, is flexibility including a willingness to work a little longer, which can go a long way toward repairing the recent damage. That s an idea retirees were already getting used to before the crisis according to the Bureau of Labor Statistics, 16 percent of Americans 65 and older are still working, the highest rate since 1971 and it may well be the best way to juice spending in retirement. For every extra year of work, retirement income can rise as much as 6.4 percent, from investment growth and Social Security increases. Mike Zimmerman is counting on it. Before the most recent market turmoil, the 61-year-old Chicagoan figured he d run his printing business for another six years. Now, he says, it ll be eight at least, depending on how quickly the market recovers. I don t mind; I enjoy what I do, says Zimmerman. In the meantime, he s still hoping that his retirement will accommodate his aspirations for fancy cars, fine wine and European vacations. When it arrives, anyway.

In the wake of a year like this one, waiting to tap that portfolio can give it time to recover, especially if you keep saving as you go. And given that taxes are likely to rise they re currently at historic lows working longer offers an opportunity to shelter more of your future income. About 22 percent of companies now offer Roth 401(k)s, which let you contribute up to $15,500 a year ($20,500 if you re over 50); you fund them with after-tax dollars, but withdrawals aren t taxed. Even on the off chance taxes don t rise, experts say the Roth plans offer a good way to build your savings while hedging your bets.

For current retirees, part-time work or consulting may be a good fit, especially if benefits aren t an issue, says Emily Allen, assistant director of workforce programs at the AARP Foundation. Anything would-be retirees can do to delay tapping Social Security can also help ensure that your money lasts. Social Security benefits are less generous if you take them before full retirement age, but you get a bonus for every year you wait after that. It s the only guaranteed income many retirees have, and while the difference of, say, $150 a month might not seem like much, it can have a huge impact. No one ever runs out of money in year one, says Maryland financial planner Karen Schaeffer. It s year 20 you have to plan for.

That means planning to pay more for health care, too. Medicare premiums are rising rapidly; health care costs overall are growing 2.5 percent faster than the rest of the economy. For these and other reasons, long-term care insurance is a must. Shopping for it isn t easy every policy is different but AARP.com and OPM.gov feature sample plans that can serve as guidelines.