How can you resume working after retirement?


Quick Answer

Although there are no laws restricting retirees from working after retirement, retirees should consider Social Security, income, expenses and health care before returning to work, explains Cheryl Winokur Munk for CNBC. The government reduces Social Security benefits for working retirees who are still under full retirement age.

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Full Answer

The Social Security Administration does not revoke benefits for working retirees past full retirement age, states its website. However, for those under retirement age, the Social Security Administration reduces benefits for people who earn more than the annual limit set by the agency. The Social Security website offers a retirement age calculator to help people determine full retirement age.

There are still other factors besides Social Security to consider when resuming work, notes Munk, such as taxes. Retirees wishing to return to work should calculate their income after taxes to ensure they can still cover their expenses with their job. Also, Social Security benefits are considered taxable income in some cases.

Another important factor to consider is health care. Not all retirees under the age of 65 qualify for Medicare, according to Charles Schwab & Co. This often leaves retirees without health insurance unless they return to work and receive these benefits from their employers. For this reason, many retirees return to the work force for health care benefits until they reach Medicare age.

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