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Retirement isn’t for everyone. Whether by choice or out of necessity, fewer eligible workers are actually retiring, opting to work throughout their golden years.
Americans 65 or older are staying in the workforce longer, with surveys showing a 33% increase in the past decade. More than half of retirement-age adults say they plan to work indefinitely.
Why is this happening? Is working in retirement beneficial for you?
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There are positives beyond the paycheck when it comes to working later in life, but there are also important considerations. I’ve laid out four questions to ponder as you weigh working in retirement vs working on your golf swing.
1. How are your social connections in retirement?
It’s easy to overlook how valuable our social connections at work can be until we face the reality of not clocking in to our shift.
Older Americans also face the inevitable battle with Father Time and a slowly decreasing social circle. Golfing with friends, time with family, local book clubs and community centers offer great opportunities to get out of the house in retirement, but some retirees find that isn’t enough.
If you’ve chosen a sunny, destination retirement far from family or you find fulfillment in conversation for eight hours a day, you might find that working in retirement keeps your mind and soul alive.
Part-time work can be a great balance between enjoying your retirement and ensuring you’re always keeping active and involved in the lives of others.
2. Is working a financial necessity or a financial burden?
Nearly half of Americans working in retirement say they’re doing so out of necessity. If you’re worried you haven’t saved enough for retirement, working past 65 can be a financial bridge to delay withdrawals, build savings and allow you to postpone claiming Social Security.
Consider your cash flow and long-term risk. Can you stretch your portfolio by reducing how much is drawn from your retirement accounts?
At the same time, you need to know how your employment interacts with Social Security taxation and required minimum distributions (RMDs). If the income from work pushes you above certain thresholds, you could be taxed on as much as 85% of your Social Security.
In general, working earlier in retirement can allow you to avoid stacking income with RMD’s, but it’s important to consult a financial adviser to understand exactly how and when your income can shift from a benefit to a burden.
A great way to avoid this concern while staying engaged socially is to volunteer. Community centers, nonprofit organizations and local schools are always looking for volunteers to help with everyday work that won’t negatively impact your financial plans.
3. Are you continuing to work to avoid change at home?
When you leave the workforce, your entire life changes. I’ve seen business owners who used to spend 60 hours a week at the office and suddenly don’t know how to adjust to having all that time at home. The dynamics that worked for decades need to change, and that can be hard. It’s not uncommon for some people to keep working just to avoid time at home.
I’ve spoken with many clients about how investing in your portfolio has been natural for so long, but in retirement, you need to reinvest in your relationships, especially your marriage. The dynamic that was a natural rhythm will change, and avoiding that reality will do nothing to help you find peace in your golden years.
The American relationship with work is complicated. It’s deeply ingrained in our culture to be driven, hardworking and always chasing that next step forward. Many people become addicted to that growth mentality.
Conversely, you might have spent 40 years dreading every step into the building where you work, yet suddenly find that never going back has its own hardships.
At some point, we all need to slow down. You should decide what slowing down looks like in retirement and how it can be a reward before it becomes a burden.
4. Do you trust your retirement plan — or are you working out of fear?
One factor that often goes unspoken is confidence, or the lack of it. Many people continue working not because they need to, but because they’re unsure if they can afford to stop.
Retirement is one of the few phases of life in which there’s no paycheck to validate your financial footing. Instead, you’re relying on a plan with projections, assumptions and probabilities.
For those without a clear road map, that uncertainty can feel overwhelming. The fear of running out of money, spending too quickly or making a costly mistake can quietly push people to keep working longer than they truly want.
In some cases, it’s not about necessity, it’s about not fully understanding what you have, what you can spend and how long it needs to last. Without that clarity, work becomes a safety net.
But retirement shouldn’t be driven by fear. A well-built financial plan is designed to give you permission, not just protection.
At the end of the day, none of us has unlimited time. The goal isn’t only to avoid running out of money. It’s to avoid running out of life without ever fully enjoying what you’ve worked so hard to build.
