Working in Retirement: Pros and Cons

You have finally reached retirement. Now what? For some individuals, retirement may mean taking it easy, traveling, and spending more time with loved ones. For others, retirement may mean finding new opportunities for work and engagement. We will examine some of the pros and cons of working in retirement and discuss why it can often be helpful for retirees to work with an investment manager and financial advisor to review their situation.


Pros of Working in Retirement

  1. Additional Income: One of the primary benefits of working in retirement is that it provides additional income. With people living longer and the cost of living also increasing, this can put a strain on retirement savings. Working in retirement can help individuals supplement their income and maintain their standard of living.
  2. Mental Stimulation: Working in retirement can provide a sense of purpose and mental stimulation. This can help individuals avoid boredom, depression, and other mental health issues that can sometimes come with retirement. Retirees who work are often more engaged with their communities and can be happier as a result.
  3. Health Benefits: Studies have shown that working in retirement can have positive effects on health. Keeping active and engaged can improve cognitive function, reduce the risk of heart disease, and lower the likelihood of developing certain types of cancer (1).
  4. Building a Legacy: For some retirees, working in retirement is about leaving a legacy and passing on their knowledge and experience to others. This can be accomplished through mentoring, teaching, or volunteering.

Cons of Working in Retirement

  1. Physical Demands: For some retirees, the physical demands of working can be challenging. For those who have health issues, working can be especially difficult. Retirees should consider their physical health when deciding whether to work in retirement.
  2. Reduced Social Security Benefits: If retirees continue to work after reaching full retirement age, their Social Security benefits may be reduced. This can be especially problematic for those who are counting on Social Security to provide a significant portion of their retirement income (2).
  3. Medicare Surcharges: Extra income from a job could push you into a higher tax bracket, as well as potentially trigger additional costs for Medicare. Higher earners must pay a premium surcharge for Medicare Part B and Part D, starting at an income above $97,000 for individuals and $194,000 if you file married or jointly (3).


While working in retirement can be challenging, it can also be an enjoyable and rewarding experience with the right planning and support. Retirees who work with a financial advisor have several advantages. Financial advisors can help retirees plan their investments by assessing the clients’ needs and factoring in acceptable risk to create an appropriate asset allocation strategy. They can also help retirees prepare for unexpected expenses and create a plan to cover these costs if they arise.

Financial advisors can provide advice on when to claim Social Security benefits, how to manage retirement savings, and how to create a sustainable retirement income. They can also help retirees plan for taxes in retirement and potentially minimize taxes on their retirement savings, pensions, and other income sources.

Working in retirement can provide retirees with additional income, mental stimulation, health benefits, and a sense of purpose. However, retirees should be mindful of the potential physical demands of work, reduced Social Security benefits, and Medicare surcharges. From retirement planning Houston strategies to San Ramon retirement management, working with a financial advisor can help retirees make the most of their retirement years. working with a financial advisor can help retirees make the most of their retirement years. They can provide investment advice, retirement planning, and tax planning to help retirees achieve their financial goals and enjoy their golden years.

Reviewed by,

Chad Seegers, CRPC®

Chad Seegers, CRPC®

Chad began his career with Sagemark Consulting in 2005 and then became a Select member of Sagemark’s Private Wealth Services which operated as a national resource for financial planners focusing on Advanced Strategies in the High Net Worth marketplace. Chad then began his partnership with Insight Wealth Strategies in 2013 focused on retirement planning primarily with Oil and Gas employees and executives. His primary areas of expertise are retirement, estate, and investment strategies as he serves as Investment Strategist for the financial planning team.

Insight Wealth Strategies, LLC is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Insight Wealth Strategies, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Insight Wealth Strategies, LLC unless a client service agreement is in place.

Insight Wealth Strategies, LLC (IWS) and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.