Could Returning to Work in Retirement Be a Smart Choice or a Risk?
Thinking about working after retirement? You’re not alone. Many older adults choose to stay in the workforce past the traditional age of 65. For some, it’s about purpose and mental health. For others, it’s about money and stretching retirement savings. Let’s dig into the benefits and risks so you can decide if working after retirement is right for you.
Why More People Work Later in Life
Longer lifespans
People reaching age 65 today can expect to live into their mid‑80s. That means retirement could last two decades or more. Working a bit longer can help fill that gap.Less physical jobs
Many careers now are about brainpower more than physical labor. That makes it easier to keep working longer.Better health
Folks in their 60s today are generally healthier than their counterparts 50 years ago.Higher education levels
More educated people tend to work past retirement age.Financial pressure
Many need to keep earning to cover living costs, health care or to delay drawing from retirement savings.
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How Many People Are Working After 65?
Roughly 19 to 20 percent of Americans aged 65 and older are employed. In 2023, that meant about 11 million people in that age group were working or actively seeking work.
Back in 1987, only 11 percent of Americans over 65 were working. That share has nearly doubled, rising to around 19 percent today.
Among those employed at age 65 and above, about 38.3 percent worked part time in 2024 (defined as fewer than 35 hours per week). The remaining 61.7 percent worked full time.
The older workforce is growing fast. The number of Americans aged 65 to 69 in the labor force rose from 23 percent in 2000 to 29.5 percent in 2023.
Benefits of Working After Retirement
Benefits of Working After Retirement
1. Better health and longer life
Working one extra year beyond retirement age lowers overall mortality by around 10 percent over an 18‑year span. Those who continue working after 65 are three times more likely to be in good health and half as likely to experience serious illness like cancer or heart disease. Working may also reduce the risk of dementia and heart attack.
2. Sharper mind
Staying mentally active through meaningful work helps delay cognitive decline. Challenging your brain with new tasks keeps it agile and engaged.
3. Social connection
A job naturally introduces routine, fosters friendships, and strengthens your sense of belonging. These social bonds are key to supporting mental well‑being.
4. Extra income
Earnings from part‑time or consulting work can fund hobbies, cover medical expenses, or allow you to postpone drawing Social Security or Medicare benefits—giving your retirement savings more room to grow.
5. Sense of purpose
Many retirees find meaningful work both fulfilling and rewarding. Rather than seeing retirement as an endpoint, they view continued work as a natural next chapter—one with structure, purpose, and satisfaction.
Risks to Consider
1. Stress and burnout
High-demand jobs and chronic stress can hurt mental and physical health. Stress is linked to heart disease and stroke. Roles with constant deadlines or high pressure can leave you feeling drained—both emotionally and physically.
2. Physical injury
Labor-intensive work poses a higher risk of injury for older adults. As we age, recovery slows down. Even a minor strain can take longer to heal, leaving you sidelined and frustrated.
3. Unintended financial consequences
Earning income during retirement can affect taxes, Social Security benefits, and Medicare premiums. Working more could push you into a higher tax bracket or alter your eligibility for certain benefits.
4. Loss of free time
Even part‑time work brings structure, schedules, and commitments. That can cut into the spontaneity and freedom you looked forward to in retirement.
5. Not all jobs support health
If a job feels unrewarding, meaningless, or overly stressful, it can harm your mental well‑being. Health benefits come from roles that match your energy and values—without overwhelming your limits.
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Finding What Works
If you’re thinking about working after retirement, here are solid options to consider:
Bridge jobs
These are short-term, low-stress positions that ease you into full retirement. They often require fewer hours, less responsibility, and sometimes let you test a new line of work while keeping income and health benefits.
Part-time or consulting
Many retirees choose roles with flexible schedules—typically under 30 or 35 hours per week. These gigs let you stay active, use your skills, and control how much you work.
Volunteer opportunities
Nonprofits, schools, and community programs offer roles that bring purpose, social engagement, and routine. You contribute meaningfully without the demands of a job structure.
Self-employment
Running your own business or freelancing gives you the flexibility to set your own rules, pick your clients, and work on projects you care about.
Questions to Ask Yourself
What do you want from work?
Do you need money, purpose, structure or social contact? Being clear helps find the right role.How physically demanding is your age‑65 job?
If it wears you out, reduce hours, shift roles or look for alternatives.Will income affect benefits?
Check with a financial planner before signing up.Do you enjoy your work?
If not, find something you like. Enjoyment makes all the difference.
Balance Is Key
Work after retirement doesn’t have to be all or nothing. The healthiest path blends:
Mental engagement
Social time
Meaningful work
Leisure and rest
Striking that balance yields better health and more enjoyment.
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Bottom Line
Recent research leans positive. Working past retirement age can support longer life, better health and a sharper mind but it only works if conditions are right. You need part‑time, voluntary, mentally engaging, low stress work.
Talk it over with your spouse, family, doctor and financial advisor. If you decide to work, choose something that supports your goals. If that means consulting a few hours a week, great. If not, pick volunteering, fitness classes or hobbies that offer similar benefits.
Working after retirement works best when it fits your life, not when it runs your life.
Reference
Harvard Health Publishing. (2018, July 1). Working later in life can pay off in more than just income. Retrieved from https://www.health.harvard.edu/staying-healthy/working-later-in-life-can-pay-off-in-more-than-just-income
Network for Public Health Law. (2016). The Association of Retirement Age with Mortality: A Population Study. Journal of Epidemiology and Community Health. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6524971/
MinnPost. (2015, September). Is working past 65 good for your health? Maybe. Or maybe not. Retrieved from https://www.minnpost.com/second-opinion/2015/09/working-past-65-good-your-health-maybe-or-maybe-not/
CDC. (2015). Health Status of Older US Workers and Nonworkers. Preventing Chronic Disease. Retrieved from https://www.cdc.gov/pcd/issues/2015/15_0040.htm
Bankers Life Blog. (2021, May 17). Benefits of Working Longer. Retrieved from https://www.bankerslife.com/insights/life-events/benefits-of-working-longer/
Psychology Today. (2023, February 26). Thriving May Mean Working Past Retirement Age. Retrieved from https://www.psychologytoday.com/us/blog/the-unedited-offspring/202302/thriving-may-mean-working-past-retirement-age
Investopedia. (2025, May 28). How Working in Later Years Can Improve Your Health. Retrieved from https://www.investopedia.com/working-older-health-benefits-11736205
