Returning to Work in Retirement? 3 Pros and 2 Cons You Should Know About

Core Insights - Many retirees may consider returning to work for various reasons, including financial benefits, social interaction, and alleviating boredom [1] Group 1: Financial Benefits - The median retirement plan balance for Americans aged 65 to 74 was $200,000 as of 2022, which may not be sufficient for a comfortable retirement, making work a viable option to increase income [3] - Working can provide additional income to cover expenses and enhance spending power, especially if retirement savings are inadequate [4] Group 2: Social Interaction - Employment can serve as a significant source of social interaction, which many retirees may miss after leaving the workforce [5] - For those without a strong social network, part-time work can help mitigate feelings of loneliness [6] Group 3: Alleviating Boredom - Transitioning from a full-time job to retirement can lead to excessive downtime, and returning to work can help fill that void [7] - Engaging in work, even on a freelance basis, can provide a fulfilling way to stay busy and avoid restlessness [9] Group 4: Considerations Regarding Social Security - While working can enhance income, retirees on Social Security must be cautious, as earnings may affect benefits if they have not reached full retirement age [10]