The New Reality of Retirement: Work Doesn’t End When You Claim Social Security

Core Insights - Approximately 40% of Social Security beneficiaries continue to work after claiming benefits, indicating that benefits alone are often insufficient to cover living expenses [2][7][11] - Lawmakers and advocates highlight that Social Security benefits have not kept pace with rising costs, resulting in a 20% loss of purchasing power since 2010 [3][11] - Many beneficiaries are forced to return to work due to increased financial pressures, including rising costs of essentials like groceries and healthcare [10][12] Group 1: Employment Trends Among Beneficiaries - In 2022, around 40% of Social Security recipients worked after claiming benefits, with many doing so to supplement their income [2][7] - About 68% of working beneficiaries claimed their Social Security benefits before reaching their full retirement age (FRA) [5] - Early claimants tend to have lower educational attainment and are less likely to be in good health compared to those who claim after the FRA [5][8] Group 2: Financial Challenges - The annual cost-of-living adjustments (COLAs) for Social Security have not kept up with inflation, leading to significant financial strain on beneficiaries [3][11] - Medicare Part B premiums are expected to reduce beneficiaries' payments, further exacerbating financial challenges [11] - A Nationwide survey revealed that nearly half of retired Social Security recipients have cut discretionary spending, and over a third have reduced essential expenses [12]