Part-time work in retirement:
Is it for you?
While retirement brings a chance to relax, for many, it opens up the opportunity to choose to work on their own terms. Part-time work offers retirees a way to earn supplemental income, stay socially connected, and find renewed purpose. Whether you're looking to cover some extra expenses or simply stay active, part-time work could add value to this new chapter in your life.
This guide explores the financial benefits, health considerations, and practical steps to help you make the right choice.
Financial benefits of working part-time in retirement
Part-time work can be an excellent way to cover unexpected expenses or fund enjoyable activities like travel. Here are some important financial aspects to consider:
Impact on Social Security benefits:
If you start Social Security before reaching your full retirement age (FRA), any earnings over a certain annual limit could lead to a temporary reduction in benefits.In 2024, this limit is $21,240, though it’s typically adjusted each year. Once you reach FRA, you can earn as much as you’d like without reducing your benefits, making it easier to balance part-time work and Social Security. Also, delaying Social Security until after FRA can increase your benefit amount, so timing your earnings with your benefits is a smart strategy.
Tax implications of extra income:
Adding to your income with part-time work can push you into a higher tax bracket or increase the taxable portion of your Social Security benefits. It’s beneficial to work with a tax advisor to understand how part-time work impacts your overall tax liability. A tax professional can help you find ways to maximize earnings while minimizing taxes.
Understanding IRMAA and Medicare costs:
Additional income might also affect your Medicare premiums if you cross certain thresholds set by the Income-Related Monthly Adjustment Amount (IRMAA). In 2025, IRMAA is projected to apply to those with incomes above $103,000 (for single filers) and $206,000 (for joint filers). If you surpass these thresholds, you could pay higher premiums for Medicare Parts B and D. Staying aware of these limits can help you manage healthcare costs while working part-time.
Balancing work with retirement can provide meaningful benefits, including supplemental income, social connections, and a sense of purpose.
Social and emotional benefits of staying engaged through work
Part-time work isn’t just about income. Many retirees find that work offers valuable social, mental, and emotional benefits:
Social connection:
For some, retirement can feel isolating, especially if close friends and family are not nearby. A part-time job provides regular interaction, which can be vital for staying connected. The chance to chat with coworkers or customers, even a few times a week, helps maintain a sense of belonging and engagement.
Mental and physical health:
Staying active—physically, mentally, or both—can support your long-term health. Studies show that regular mental engagement helps preserve cognitive function, while even light physical activity in some jobs promotes well-being. Whether it’s problem-solving, communication, or moving around, part-time work can keep both your mind and body in good shape.
A renewed sense of purpose:
Some retirees miss the structure and purpose their careers once provided. Part-time work can be a way to bring back that sense of contribution, especially if you choose roles that let you use your skills or explore interests. Whether mentoring younger colleagues, working for a nonprofit, or taking on a role that excites you, meaningful part-time work can add joy and fulfillment to your routine.
Types of part-time work for retirees
The ideal type of work depends on your personal interests, skills, and need for flexibility. Here are some common part-time options:
Consulting and freelance work:
If you have specialized skills, consulting or freelancing allows you to choose projects and control your schedule. Many retirees enjoy the flexibility and income that consulting provides, especially since it often involves short-term projects rather than long-term commitments.
Retail and customer service roles:
Retail positions are great for social interaction and usually offer flexible hours. Seasonal and part-time roles can provide steady work without the full-time pressure, making them perfect for retirees who enjoy meeting new people.
Remote or online work:
Many online positions, from tutoring to virtual assistance, can be done from the comfort of home. Remote work is ideal for those who may have mobility limitations or prefer not to commute but still want mental engagement and flexible hours.
Volunteering with a stipend:
Some volunteer roles come with small stipends or other perks, like travel reimbursement. For those who don’t need significant extra income, volunteering is a way to give back to the community, stay active, and enjoy meaningful engagement without the demands of traditional employment.
Healthcare considerations: Medicare and employer insurance
For some retirees, part-time work provides health insurance benefits. However, it’s important to know how this interacts with Medicare:
If you have employer health coverage through part-time work, you’ll need to understand how it coordinates with Medicare. Many employers require Medicare to be the primary payer if you’re eligible, which affects what each plan covers. Reviewing both options will help you decide if employer coverage offers any cost or coverage advantages.
If you defer Medicare Part B due to employer coverage, make sure to avoid any late enrollment penalties. Enrolling in both Medicare and employer health coverage, if affordable, often provides the best overall protection against medical costs.
Practical steps to start working again
If you're interested in working part-time, these steps can help you get started:
Identify your goals and interests:
Are you looking for income, social engagement, or a sense of purpose? Understanding your priorities will help you narrow down the best job types and settings.
Brush up on skills:
Certain fields, especially those involving technology, may require you to update skills. Many online resources and community colleges offer affordable courses to help you refresh your knowledge.
Leverage your network:
Many retirees find part-time work through friends, former colleagues, or local connections. Reach out to your network or join local groups to hear about opportunities. Word-of-mouth referrals are especially valuable for flexible or part-time roles.
Stay open to new opportunities:
Part-time work after retirement doesn’t have to resemble your previous career. Exploring new roles—whether in retail, education, seasonal work, or a local nonprofit—can be fulfilling and even fun.
Finding the right balance
Balancing work with retirement can provide meaningful benefits, including supplemental income, social connections, and a sense of purpose. By carefully considering financial factors like taxes and Medicare, alongside non-financial benefits, you can make part-time work a valuable part of your retirement.
A thoughtful approach ensures that work enriches your life and supports your goals. This phase is an opportunity to redefine how you want to spend your time and enjoy a rewarding balance between work, personal interests, and the freedom retirement brings.
Get help at no additional cost
Meet with a financial professional
Need more one-on-one support to plan your retirement? Meet in-person or virtually; flexible dates and times are available.
Looking for Account support
If you need to update your account details or complete a transaction, get help right away.
This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy, or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances which should be the basis of any investment decision.
Investment products may be subject to market and other risk factors. See the applicable product literature or visit TIAA.org for details.
Retirement check refers to the annuity income received in retirement. Guarantees of fixed monthly payments are only associated with TIAA's fixed annuities.
Investment decisions should be made based on the investor's own objectives and circumstances. Advice is obtained using an advice methodology from an independent third-party.
4346260