Benefits of continuing to work in retirement

See what your current projected retirement income looks like with our retirement planning tool.

Log in

Historically, retirement meant a time when most people stopped working

Today, that’s not necessarily true. A recent study¹ of current workers found that:

57% — Plan to work full- or part-time after they retire
17% — Are unsure if they will work after they retire
26% — Do not plan to work after they retire

As more people retire early and live longer, some may continue working for a variety of reasons.

To decide if being a working retiree makes sense for you, consider these lifestyle and financial benefits.

handshake icon

A job can keep you active physically, mentally and socially. Exercising your body and mind promotes good health. So does feeling connected to others.

group of people icon

A job that gets you out and about in your local area can give you a sense of belonging. It can also provide a sense of purpose as you help others through your work.

heart icon

You might shift gears to work with an organization that shares your commitment to a cause. From food pantries to animal shelters, non-profits need volunteers and paid help.

briefcase icon

If you love your career, age is no reason to quit. Whether you stay in your current role or find a similar one, taking on new challenges will help you continue to grow.

open sign icon

Switching to a part-time role may provide better work-life balance. Reduced-hour options vary widely, from consulting to retail work.

piggy bank icon

Working during retirement may give you extra money for discretionary spending. That could mean enjoying dinners out or traveling more frequently.

medical cross icon

If you retire before you qualify for Medicare, a job might offer lower-cost health benefits than private insurance provides. Even with Medicare, adding health insurance could reduce your out-of-pocket costs. Rules for receiving benefits vary, so ask employers.

calendar icon

The longer you wait to collect Social
Security, the larger your monthly check will be. Your benefit amount increases each year between ages 62 and 70. Working in retirement can help you wait to take Social Security until you’re older.

dollar bills icon

Remaining employed can give your investments more time to grow. You may also be able to take advantage of catch-up contributions to help you reach your goals.

Can I work after I start receiving retirement benefits?

The answer is “yes.” Keep in mind, however, that working could affect your Social Security benefits if you’re younger than full retirement age and earn over a certain amount.2 Full-time work for an employer that provides you with a pension could also keep you from drawing it. Check details before deciding.

Watch this video to see what working in retirement could look like.

click button
Are you on track to meet your retirement income goals?
Find out by using our retirement planning tool, then increase your contributions to reach them.

To learn more about investing concepts and investing through your plan, visit our resource center.

[1] “Retirement Security Amid COVID-19: The Outlook of Three Generations,” TransAmerica (May 2020)
[2] “Receiving Benefits While Working,” Social Security Administration