Should You Work After Retirement?

Think about all the years of double shifts and overtime pay. Aren’t you excited to leave the rat race behind? Even if the answer is an emphatic “Yes!” you might have to pick up a part-time job after you retire for additional cash flow to support your dream standard of life after retirement. Before you jump back into the work force, are you sure the unexpected costs and physical toll of a job is worth the extra income?

Why Are You Working?

After you retire, examine your budget. Is your current lifestyle sustainable far into the future – 20 years or more? If you feel obligated to work in order to make ends meet, reassess your financial obligations. Could you sell your current home and move to a lower cost location? Could you and your partner downsize to one vehicle? Even if you are healthy and energetic enough to excel at a part-time job in the present, there are no guarantees you will be able to continue undeterred. It may be simpler to examine which expenses you can reduce and take action to minimize your budget, rather than pursue a job opportunity that could increase your stress levels at a time when you’re supposed to be the most relaxed.

Will Income Affect Social Security Benefits?

If you retired early and depend on Social Security benefits as income, obtaining another job could drastically reduce the monthly payout. Every year, the Social Security Administration sets a limit on how much money retirees can earn through part-time work before their monthly benefits are affected. In 2015, retirees can expect $1 deducted for every $2 earned over $15,720. In addition, seniors must be conscious of how additional cash affects their tax bracket. Between a part-time paycheck to money earned from investments, if an individual’s total gross income rises above a certain level, up to 85 percent of their Social Security benefits is considered taxable income. Before you commit to a new, part-time employer, talk to an advisor about how taxes can affect your monthly take-home pay to determine if a job is worth it.

Do You Need Health Insurance?

If you retire before age 65, you are not yet eligible for Medicare benefits. For early retirees, a part-time job offering full health coverage may be worth the work. Paying for health insurance out of pocket as an aging adult could tax an already tight budget to the maximum, especially if you aren’t sure what type of coverage you need.

Your individual health and financial standing is unique and only you can say for certain whether working after retirement will positively contribute to your present and future lifestyle. If you would like personalized advice on prospective health insurance plans, discuss your present insurance scenario with the specialists at before making a decision about working after retirement.


Pete Blasi