Unretiring: should you go back to work?
Unretiring is choosing to work after retirement, even though you may already be eligible for retirement benefits. This article covers what unretirement is, how it works, what jobs to consider, and how it will affect your Social Security benefit.
Summary
You may want to unretire to better your financial position, get better healthcare coverage, or find a sense of fulfillment.
Some of the most popular jobs for retirees include drivers, nannies, office managers, real estate brokers, tutors, and consultants.
If you took Social Security before your full retirement age, you’ll want to watch out for how your Social Security benefit will change.
Unbiased can connect you with a financial advisor suited to help with your unique retirement situation.
What is unretiring, and can you unretire?
Unretiring is working again after retirement. According to Federal Reserve Economic Data (FRED), 24% of the population over the age of 65 is in the labor force.
Retirement does not have to be a permanent exit from the workforce; you can unretire at any time. There are a number of reasons why it could make sense for you.
Why are retirees unretiring?
There are many reasons why retirees may choose to unretire.
Some of the top reasons for returning to the labor force include:
Financial: You might want to increase your income in retirement or continue building your nest egg.
Healthcare: If you’re not yet eligible for Medicare, you may want to find employment that offers healthcare.
Social: A job can help you stay busy and feel connected.
Fulfillment: It’s natural to want to return to a place where you were successful. Working may help you feel like you’re making a significant contribution.
How do I unretire?
Unretiring can be casual or strategic.
If you land a job you like and start earning money, you’re considered unretired.
If you want to be more strategic and talk to a financial advisor, you can make decisions about how it affects your Social Security benefit, healthcare coverage, savings, and other financial or lifestyle priorities you have.
What are the most popular jobs for unretirees?
Your interests and skills will lead you to a landing spot that’s right for you.
Some of the top jobs for retirees you may want to consider include:
Tutor: If you have a skill, such as knowledge of an instrument or a language, you may be able to help others learn it.
Consultant: Your expertise in a specific area could be valued as a consultant in retirement.
Office manager: If you can organize and manage things smoothly, you may want to consider a career as an office manager.
Editor: You can use your keen eye for grammar, structure, and detail as an editor.
Nanny: If you can manage the physical and emotional demands of childcare, you could consider becoming a nanny.
Bus or ride-share driver: Schools always need bus drivers, and ride-share drivers can earn a decent wage.
Real estate agent: If you love real estate, helping people, and have an eye for detail, you may want to consider becoming a real estate agent.
Tour guide: Know a lot about your area? You may want to offer services as a tour guide.
Bookkeeper: Businesses need help with their books, and if you have some background in this, you could be a big help.
Financial manager: Former executives, accountants, and managers may be well-suited to help individuals or corporations plan financial decisions.
What are the rules for working after retirement?
Working after retirement has some consequences for the amount of Social Security received, but only for those who collect Social Security before their full retirement age.
Here’s what you need to consider regarding a reduction in Social Security benefits when you unretire.
If you’re between ages 62 and 66: Your benefits will be reduced by $1 for every $2 you earn above the annual limit, which is $23,400 for 2025, or $1,950 per month. For example, if you earn $3,000 per month in income, $1,950 of that is allowed, and the reduction is figured on the remaining $1,050. Half of that amount is $525, which is how much your Social Security benefit may be reduced.
The calendar year you reach full retirement age: You can earn up to $62,160 before your Social Security income is reduced. Above that amount, your benefit will be reduced by $1 for every $3 you earn.
Full retirement age: Any earnings do not reduce your Social Security benefit if you’ve reached full retirement age.
The Social Security Administration website has a calculator that allows you to see exactly how your benefits will change if you begin working again.
While you do receive less Social Security income for a short time, you could end up with a higher Social Security benefit if returning to work results in one of your highest-earning years. Your Social Security benefit will be recalculated at the end of the calendar year, and you’ll receive a larger benefit.
5 mistakes to avoid when unretiring
If you’re stepping back into the workforce, here are five common mistakes to avoid.
Not factoring in the reduction in your Social Security benefit: As mentioned previously, your Social Security income may be reduced if you’ve taken early distributions and then decide to go back to work.
Not considering healthcare: If you’re not eligible for Medicare yet, you may want to consider employment that provides health insurance.
Getting a stressful job: If you decide to return to work, you need to ensure it is the right fit for you. While all jobs carry some level of stress, entering an overly stressful work environment can be detrimental to your retirement.
Not considering taxes: Taxes make a big difference in your bottom line. You’ll likely want to consult with a professional to find the most tax-efficient way to pay taxes in retirement.
Not having a plan: You may want to make a plan for retiring the second time around so you know exactly what you want to get out of unretirement.
Get expert financial advice
You don’t have to make decisions alone when it comes to unretiring.
Unbiased can match you with a qualified financial advisor who can help guide you through complex retirement situations.
Content Writer
Alene Laney is an award-winning journalist for Unbiased, where she breaks down financial topics related to retirement, investing, and banking. She specializes in helping readers make the best decisions for their money with long-form content for brands and consumer publications.