Common Myths About Working in Retirement

Quick Answer: Discover the truth about working in retirement. Learn how safe money alternatives can support your financial goals. Explore more at SafeMoney.com.

In the past, we’ve covered some of the financial challenges seniors are likely to face in retirement. In turn, these hassles have played a role in shaping Americans’ retirement expectations. One of the growing trends is post-retirement employment.

At present, many people have a shortfall in retirement funds. For instance, the Boston College Center for Retirement Research found many Americans were greatly underprepared. According to the center’s data, as of 2013 half of American households didn’t have enough money to sustain their current standard of living in retirement.

Despite this challenge, many Americans believe working longer will help cover the shortfall. This belief is increasingly giving way to a new expectation: that post-retirement employment in itself is enough to make up for not having a retirement plan. But the truth is many factors can unbalance this approach and lead to unnecessary financial hardship.

What are Myths about Working in Retirement?

In a recent Harris Poll completed for the Nationwide Retirement Institute, 40% of respondents said they expected to never retire. They believed ongoing employment to be necessary due to ongoing cost burdens such as elevated healthcare costs. Another factor was related to security. Having a stable income and employer-paid insurance was another justification for ongoing employment.

Nonetheless, other surveys show just how unpredictable retirement trajectories can be. In the University of Michigan’s Health and Retirement Study, almost 37% of people working at age 58 retired earlier than they planned. Data from other studies show how retirement expectations can be curtailed, too. Much of these “retirement disruptions” occurred due to unexpected life events, including:

• Being laid off from employment
• Place of employment shutting doors
• Changes in family circumstances
• Shortfalls or increases in wealth
• Unanticipated medical emergencies

No matter what someone plans, life is filled with unexpectencies. From that standpoint, it’s best to have a plan that accounts for the worst outcomes and positions you for a secure future. Proactive financial planning will help you avoid those unneeded “retirement nightmares” and enjoy these golden years of retirement living.

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Frequently Asked Questions About common myths about working in retirement

Can I work part-time during retirement without affecting my Social Security benefits?

Yes, you can work part-time during retirement and still receive Social Security benefits, but there are income limits that may affect your benefits if you are under full retirement age. If you earn above the threshold, your benefits may be reduced temporarily until you reach full retirement age. After that, your benefits will be recalculated to account for the months you did not receive full payments.

What are the benefits of working in retirement?

Working in retirement can provide additional income, which can help cover living expenses and enhance your lifestyle. It also offers social engagement and a sense of purpose, which can be beneficial for mental health. Additionally, continuing to work may allow you to delay drawing from your retirement savings, giving those funds more time to grow.

How can I balance work and retirement effectively?

Balancing work and retirement involves setting clear priorities and understanding your financial needs. Consider part-time or flexible work options that allow you to enjoy your retirement while still earning an income. Additionally, explore safe money alternatives to ensure your retirement savings remain secure while you work.

What types of jobs are best for retirees?

The best jobs for retirees often include flexible, part-time positions that align with their skills and interests, such as consulting, tutoring, or customer service roles. Many retirees also find satisfaction in volunteer work or part-time roles in industries they are passionate about. It's important to choose a job that provides the right balance of income and enjoyment without overwhelming your retirement lifestyle.

Take the next step, run the numbers with our free retirement calculators.

Updated May 2026: If you claim Social Security before your full retirement age (67 for those born in 1960 or later) and earn more than $22,320 in 2025, the SSA will temporarily withhold $1 in benefits for every $2 earned above that threshold — an important consideration for retirees who plan to work part time.