Work after retirement: Some things to consider

Retirement looks different for everyone: some work, some don’t. 

Working after an initial retirement doesn’t have to be for financial reasons. Maybe an individual just wants something to keep them mentally engaged and social.

But regardless of whether one goes back to work after retirement because they need to for financial reasons or because they want to get out of the house and have something to do that creates meaning, there are considerations to keep in mind.

• What kind of job are you looking for? There are a variety of jobs you could take on that build on your life and work experience, or you can do something completely different. There’s flexibility in working during retirement that you may not have had before you retired.
• How much time do you want to devote? There are jobs that don’t require you to work full-time hours.
• What are your financial goals? If you’re concerned that you’ll need or want more of a financial cushion than you currently have, it may be a point in favor of working after you retire from your first career. It’s also important to consider whether you’re interested in delaying withdrawals from your 401k.
• What are the financial tradeoffs? One thing you’ll have to realize is that you may not have the IRA tax break if you’re over the age of 70.5, according to U.S. News and World Report.
• Why do you want to work? The answer to this question can help you determine which position you’re interested in if you do decide to work after you retire.

Benefits of working after retirement

• Increases to social security benefits. Working after retirement means that you may not have to start pulling early from your Social Security. The typical advice is that the longer you wait, the more money you’ll possibly receive each month.
• You may be eligible for health benefits. If you retire before you qualify for Medicare, you may find that healthcare is shockingly expensive. If you work at a job that offers health benefits before you qualify (or even after), the health insurance can help you save money. It could also cover the things that Medicare doesn’t.
• The potential exists for more social interaction. When you retire and don’t have to go to your job every single day, you may not see as many people. But working, even shorter hours, can help you to remain connected to other people and stave off loneliness.