Can You Work After Retirement?

For years, you’ve dreamt of the day you could finally say, “I’m retired.” You may have visions of playing golf, traveling or spending more time with the grandkids, but depending on your interests and your financial situation, you may want to continue working past your full retirement age. Here’s what you need to know if you choose to work beyond the age of 67 and why it may be worth it.

4 Reasons You Should Work Past Your Retirement Date

1. To Keep Your Medical Coverage

   When deciding when to retire, be sure to consider the impact not having your employer’s benefits will have. The employer-sponsored health insurance coverage you’ve held through your employer may be hard to match once you’ve retired. Access to your employer benefits can be a big reason for working beyond retirement age.
   
   

2. To Save More

   If you haven’t saved enough for retirement or have other debt, working longer may allow you to put more money away. According to a 2023 Gallup poll, only 43% of non-retired adults expect to be financially comfortable in retirement, making financial necessity a primary reason to work past retirement age. Working an extra year or two can make a big difference in your retirement savings and give you more financial freedom in retirement. You’ll also be contributing more to your retirement plan, and if you’re 50 or older, you may be able to make annual catch-up contributions at the end of each calendar year. The Internal Revenue Service (IRS) allows you to make additional contributions beyond the standard contribution limit to help you speed up savings. In 2023, the 401(k) catch up contribution limit is $7,500, meaning that workers over 50 are allowed to contribute a total of $30,000 per year.
   
   

3. To Delay Social Security

   It may seem like a good idea to take your Social Security benefit as soon as possible, but the longer you wait, the more each payment may be. If you are healthy and don't need the income right away, it may be wise to delay as long as you can up to age 70. In addition, if you are working after retirement age, you are still accumulating benefits (and perhaps earning delayed retirement credits), which could increase your Social Security benefit amount when you do start taking Social Security. As an example, if your benefit at age 62 is $1,275 per month and your expected full retirement benefit at 66 is $1,700 per month, it would increase to $2,244 per month by age 70. That’s 76 percent higher than if benefits would have been started at age 62. However, delaying retirement by continuing to work past age 70 will not increase your benefit amount.
   
   

4. To Continue Doing Something You Love

   For many adults, their career becomes an integral part of their life, and moving on can be difficult. The good news is that the rules of retirement have changed in recent years, and it’s easier than ever to build a retirement plan that works for you. If you’re filled with anxiety about how to fill your time in a post-work phase of life, you may want to consider staying in the workforce a while longer. Part-time work or self-employment can be a good way to stay involved and engaged while still having the flexibility that comes with retirement.

Planning for Tomorrow

Whether retirement is right around the corner or five, 10 or 20 years from now, it’s never too late to learn more about how you can maximize your retirement. Connect with your local Farm Bureau agent to learn how you can take charge of your retirement strategy today.