Disadvantages of Continuing to Work After Retirement

More individuals than ever are choosing to delay their retirement and continue working after turning 65 and current statistics have revealed that up to 20% of men and women over this age are either still actively employed or seeking a position. 

While there are advantages to remaining employed during this time of your life, there are also a number of disadvantages that must be taken into consideration.

Working after Retirement can Affect Social Security Benefits

First and foremost, it’s crucial to keep in mind that working after turning 65 will usually have a negative effect on your Social Security and Medicare benefits. For instance, both of these benefits can be affected by the amount of income you earn after you’ve officially retired. 

If you’re receiving Social Security payments during 2021, you haven’t yet reached full retirement age and income from your post-retirement job exceeds $18,960, your benefit will be reduced by $1 for every $2 earned over this limit. However, once you officially reach full retirement age, you’ll be able to work without having your Social Security benefits reduced.

It’s Not a Guaranteed Solution for a Shortfall in Savings

Although continuing to work after officially retiring – even part-time – provides a good way to supplement any personal savings you may have, keep in mind that you won’t always be able to control your employment situation. For instance, if you become ill or are injured, you may have to stop working completely – regardless of whether you can afford to or not. As such, it’s crucial to prioritize retirement savings while you’re still young and healthy.

You’ll Have Less Time to do the Things you Enjoy

The most obvious disadvantage of continuing to work after turning 65 is that you will be left with less time than ever to do the things you enjoy – which is usually the main objective of retiring. However, this may not always be a serious issue if you happen to find a position that you enjoy.

You Could Experience Additional Stress

As most individuals become older, they look for ways to reduce the amount of stress in their lives – and going back to work will certainly not be the way to do this. This will be the time to consider the real reason why you’re returning to work – are you bored sitting at home day after day or do you truly need the extra money to cover unexpected medical bills? If you don’t really need to extra money, it may not be worthwhile to subject yourself to the unnecessary stress of going back to work. 

Although many new retirees feel compelled to remain as active as possible, it’s important to remember that this is the time of your life when you should seriously consider slowing down a little to enjoy your golden years as much as possible. If you truly are bored being at home day after day, consider donating some of your free time to a charity or other worthy cause that you feel strongly about.