Retirement doesn’t always mean saying goodbye to work. For many Americans, the idea of working after retirement is becoming more common—and sometimes even necessary. Whether it’s for financial support, staying active, or pursuing passion projects, working during retirement can offer both rewards and challenges.
In this guide, we’ll break down 8 important things you need to know about working in retirement. From tax rules to social security, and finding the right kind of job, we’ll help you make smart choices so your retirement years can be both productive and fulfilling.
1. You Can Still Work and Receive Social Security Benefits
A big question for many retirees is: Can I work and still get Social Security? The short answer is yes—but there are rules.
If you’ve reached full retirement age (which is 66 or 67 for most people), you can work as much as you want and still receive your full Social Security benefits.
However, if you’re under full retirement age, your benefits might be reduced temporarily if you earn above a certain limit. In 2025, that limit is around $22,320 per year. For every $2 you earn over the limit, $1 will be withheld from your benefits.
But don’t worry—you’ll get that money back later. Once you reach full retirement age, your monthly benefit will be adjusted upward to account for the months when benefits were reduced.
2. Your Earnings Might Affect Your Taxes
If you’re collecting Social Security and working, you might have to pay taxes on a portion of your benefits—depending on your total income.
Here’s how it works:
- If you’re single and your combined income is over $25,000, up to 50% of your Social Security benefits may be taxable.
- For couples filing jointly, the threshold is $32,000.
Combined income includes wages, self-employment income, interest, dividends, and half of your Social Security benefits.
Tip: Speak with a tax advisor to understand your personal situation and avoid unexpected tax bills.
3. Healthcare Costs Can Be Tricky
Once you turn 65, you’re eligible for Medicare. But if you continue working and your employer offers health insurance, you might not need full Medicare coverage right away.
Key points to consider:
- If you work for a company with 20+ employees, you can delay Medicare Part B and avoid penalties.
- If you’re self-employed or work part-time, you may still need to enroll in Medicare to avoid gaps in coverage.
Healthcare planning is a major part of retirement, so make sure your work benefits and Medicare choices are aligned.
4. Part-Time Work Offers Flexibility and Freedom
Many retirees don’t want a 9-to-5 job—they want flexibility. That’s where part-time work comes in.
Popular part-time jobs for retirees include:
- Consultant or freelance work
- Remote customer service
- Virtual assistant
- Tour guide
- Tutor or substitute teacher
- Local delivery driver
These jobs allow you to stay active, earn extra income, and still enjoy your freedom. They’re also perfect for using the skills you’ve developed over your career.
5. Your Retirement Savings Can Keep Growing
Just because you’re retired doesn’t mean you have to stop saving. In fact, working after retirement allows you to delay tapping into your 401(k), IRA, or other savings—giving your investments more time to grow.
You can also continue contributing to certain retirement accounts if you have earned income. For example:
- You can contribute to a Traditional or Roth IRA up to $8,000 in 2025 (if you’re 50 or older).
- If you’re self-employed, you can use a SEP IRA or Solo 401(k).
This gives you more financial stability in your later years.
6. Your Lifestyle Will Affect How Long You Work
Retirement isn’t one-size-fits-all. Some people work out of financial necessity, while others do it to stay mentally sharp or socially active.
Think about your goals:
- Do you want to travel more?
- Do you enjoy staying busy and productive?
- Are you working to support your children or grandchildren?
Understanding your personal reasons for working helps you choose the right kind of job and balance your time.
7. Watch Out for Burnout or Over commitment
While working in retirement has benefits, it can also be tiring—especially if the job is demanding or takes away from your personal time.
Signs of burnout:
- Constant fatigue or stress
- Less time with family or friends
- Losing interest in hobbies
Tip: Choose work that fits your new lifestyle, not your old one. Retirement is your time. Be selective with how you spend it.
8. Working Can Improve Your Mental and Financial Health
Many studies show that staying active and working after retirement can reduce the risk of depression, dementia, and even physical decline.
Plus, extra income can:
- Reduce the need to withdraw from savings
- Help you pay down debt
- Fund travel or new hobbies
- Give you peace of mind
If done right, working after retirement offers the best of both worlds—financial security and a meaningful daily routine.
Final Thoughts
Retirement no longer means the end of your working life. For many, it’s just the start of a new kind of career—one built on passion, choice, and flexibility.
Whether you’re working for income, enjoyment, or purpose, being informed will help you make the most of it.
Take the time to understand how working affects your benefits, taxes, and lifestyle. And most importantly, choose a path that keeps you happy, healthy, and financially secure.