While you may hear the “softening” of US job market, one study found that as many as 1 in 8 retirees between ages 65 and 85 plan to return to work during 2025. Some in the media call this trend “un-retirement.”
The reason behind “un-retirement” is diverse. Some do so because they worry about outliving their money; others are simply bored during retirement and want the structure and social network of the workplace.
If you are a retiree and think about reentering work force, you need to be aware that earning money again after retirement can have consequences on your Social Security and Medicare Benefits.
For example, if a retiree is receiving Social Benefits before full-retirement age, and he starts working again, his Social Security benefits are reduced by $1 for every $2 of his income that exceeds $23,400 in 2025. In the year he reaches full retirement age, the reduction to his benefits is $1 for every $3 of the income that exceeds $62,160. However, in the month that he reaches full retirement age, the reduction stops.
When the income a person earns combined with his other income exceed certain thresholds, he can be subject to increased Medicare premiums as well.
Reentering workforce after retirement is a big decision. If, for whatever reason, you are thinking about “un-retiring”, it is crucial for you to weigh the pros and cons of doing so before making such a decision.