Retirement Income: The Transition Into Retirement

Phased retirement

Some employers have begun to offer phased retirement programs. These programs allow you to receive all or part of your pension benefit once you've reached retirement age, while you continue to work on a part-time basis for the same employer.

 

Do You Plan to Work in Retirement?

Many employees nearing retirement plan to work for at least some period of time during their retirement years. The obvious advantage of working during retirement is that you'll be earning money and relying less on your retirement savings — leaving more to potentially grow for the future and helping your savings last longer.

But there are also non-economic reasons for working during retirement. Many retirees work for personal fulfillment — to stay mentally and physically active, to enjoy the social benefits of working, or to try their hand at something new. The reasons are as varied as the retirees themselves.

If you're thinking of working during a portion of your retirement, you'll want to consider carefully how it might affect your overall retirement income plan. For example:

  • If you continue to work, will you have access to affordable health care (more and more employers are offering this important benefit to part-time employees)?
  • Will working in retirement allow you to delay receiving Social Security retirement benefits? If so, your annual benefit may be higher than if you don't delay.
  • If you'll be receiving Social Security benefits while working, how will your work income affect the amount of Social Security benefits that you receive? Additional earnings can increase benefits in future years. However, for years before you reach full retirement age, $1 in benefits will generally be withheld for every $2 you earn over the Social Security annual earnings limit. Special rules apply in the year that you reach full retirement age.

IMPORTANT DISCLOSURES Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2025.