Core Insights - Many individuals look forward to retirement for the freedom it brings from regular employment, but some may choose to return to work for financial or mental health reasons [1][2][3] Social Security Earnings Test - Social Security recipients can work while collecting benefits, but those under full retirement age are subject to an earnings test that limits their income [4][7] - The earnings-test limits are set to increase in 2026, allowing recipients to earn more without risking benefit withholding [5][6] - For those under full retirement age in 2026, the earnings-test limit will rise to $24,480 from $23,400 in 2025, with $1 withheld for every $2 earned over this limit [6] - If a recipient reaches full retirement age in 2026, the earnings-test limit will be $65,160, up from $62,160 in 2025, with $1 withheld for every $3 earned over this limit [8]

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]