7 Questions to Ask Yourself Before You Unretire

Going back to work can enrich your life in retirement, but it can also cost you in unexpected ways

Kerri Anne Renzulli,

AARP

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Published September 03, 2025

a woman walks through a door to two scenes: a beach scene on the left and an office scene on the right

Eden Weingart

Traditionally, retirement means saying goodbye to the workforce and entering a new life stage of leisure, travel, hobbies and more time with loved ones. But not everyone relishes the idea of leaving their professional selves in the past.

Around 1 in 5 retirees defy the standard definition of retirement by still clocking in and earning a paycheck, according to a recent T. Rowe Price study. Another 7 percent hope to join them soon as they seek employment. “As much as many people complain about their jobs or working in general, for many of us, work is where we derive meaning,” says Joseph Torre, a certified financial planner with Colarossi & Williams Financial Advisory Group in Islandia, New York. “Not all individuals have hobbies lined up on day one of retirement.”

If you’re finding retirement isn’t living up to your expectations — or is straining your budget more than you anticipated — returning to work could be the answer. But before you unretire, consider a few key questions to ensure you fully understand the emotional and financial benefits and downsides of going back to work.

1. Why do I want to return to work?

Money is a major reason retirees resume employment. Nearly half of older workers surveyed by T. Rowe Price said financial concerns kept them in the labor force. But it’s far from the only reason: Almost as many (45 percent) choose to work for the social and emotional benefits.

“Many people underestimate how much of their identity and daily routine was tied to their job, and they miss the structure, social interaction and sense of purpose that work provided,” says certified financial planner Laura Mattia, a senior vice president at Wealth Enhancement in Sarasota, Florida.

The mental stimulation and social connections a job provides is key for many of these older workers, especially those in full-time roles. But before jumping back into work, consider what your retirement may be missing.

“You first need to figure out why you want to go back to work and how this job will add value to your retirement,” says Robert Laura, founder and CEO of the Retirement Coaches Association, a professional organization based in Michigan that helps people navigate the transition to retirement.

2. What kind of work environment do I want?

Returning to work doesn’t mean you need to return to your previous career, employer or work schedule. Few retirees choose to step back into their old professional lives, says Judith Ward, a certified financial planner and thought leadership director at T. Rowe Price. Instead, many opt for a different industry or role.

Don’t want to work full-time? Consider picking up part-time work that would allow you to customize your workload and maintain time for other activities or goals that are important to your retirement lifestyle.

Whatever your preference, carve out time to cast a wide net and explore a variety of opportunities, from jobs for former employers or clients to consulting work, substitute teaching, or gig-economy jobs with a ride-share or food delivery service such as Uber, DoorDash or Postmates.

Also, think about the level of responsibility you want to take on and whether you want a structured or flexible work schedule, an in-person or remote job.

3. Do I have enough time to work in retirement?

Nineteen percent of retirees employed full-time and 28 percent of those working part-time told T. Rowe Price they got jobs because they had nothing else to do, but not all retirees have as much spare time to fill.

Think realistically about how much time you have to give to an employer. What other commitments do you already have? Are you helping look after grandchildren or caring for an aging parent? Do you volunteer regularly?

You don’t want to sacrifice retirement activities that make you happy, connect you with family and friends, or make you feel part of your community.

“Money matters, but you need to weigh it against everything else in your life,” says Sonja Pippin, an accounting professor at the University of Nevada. “Think about the trade-offs you’re making and your quality of life.”

4. Am I healthy enough to work in retirement?

Among Americans ages 65 and older, 93 percent have at least one chronic health condition and 79 percent are managing two or more chronic conditions, according to research published by the Centers for Disease Control and Prevention.

Do an honest assessment of your physical and cognitive health. Know your body’s limitations so that you don’t make the mistake of taking on a job that’s too taxing.

Ask yourself, “What are the demands of the job, and will you be able to do that?” suggests Ward. “I knew one retiree who wanted to go back to work at a retail job, but she found that she just wasn’t able to stand on her feet for six hours straight during her shift. It got to be too hard, and she had to do something different.”

5. How much money do I need to earn to shore up my retirement savings?

If money concerns are driving your return to work, it's likely you need the cash to cover your bills. But that paycheck can also pad your nest egg, minimizing the risk that you’ll outlive your retirement savings.

“Going back to work can help delay Social Security benefits, boost retirement savings and reduce the need to withdraw from investment accounts, which can improve long-term financial outcomes,” says certified financial planner Nathan Sebesta, owner of Access Wealth Strategies in Artesia, New Mexico.

But how much money do you need to earn, and how long do you need to work before you can retire again?

Review your retirement expenses and see how they align with the money you currently or will soon receive from investments, retirement accounts and Social Security. You can do this yourself or enlist the help of a financial planner.

If there are any shortfalls or if you don’t feel comfortable withdrawing from your retirement savings just yet, generating an income can help ease your money woes. And, depending on how much you earn by returning to work, you may be able to pay off a mortgage, credit card balance or other debt that’s eating away at your nest egg.

You can also shore up your savings by taking advantage of catch-up contributions for retirement accounts. In 2025, workers age 50 or older can stash an additional $1,000 in their individual retirement account (IRA) or $7,500 in their 401(k) or 403(b) accounts on top of the standard contribution limit of $23,500. Workers ages 60 to 63 can contribute an extra $11,250 into their 401(k) or 403(b) this year.

6. How will working during retirement affect my Social Security benefits?

If you haven’t begun collecting Social Security, unretiring can help you delay claiming your benefits until you reach full retirement age (FRA) — between 66 and 67, depending on your birth year — or later.

Why hold off? Because waiting to claim Social Security can increase your benefits by as much as 8 percent a year until age 70, when you can claim your maximum benefit.

Since Social Security benefits are based on your 35 highest-earning years, adding a few more working years to your record could boost your payment if your current income replaces a year where you earned less.

However, retirees who start collecting Social Security before reaching FRA may temporarily reduce their benefits by going back to work. That’s because if you earn above a certain threshold, the government will withhold some of your Social Security. (After you hit FRA, Social Security adjusts your benefit so you’ll recoup the withholding over time.)

Another unpleasant consequence of working while collecting Social Security: Higher overall income could lead to more of your benefits being taxed, Pippin says. Higher earners could also pay larger Medicare Part B and Part D premiums.

7. Am I making a snap decision?

Getting a job might seem like the right solution for the retirement blues because it’s the most familiar option, but that doesn’t necessarily make it the best one.

It usually takes about two years for people to settle into their retirement lifestyle and new routine, Ward says. “I always tell people to give themselves some grace and have patience with the process.”

Nearly half of all retirees in their first two years of retirement and 37 percent of those who had been retired for at least three years said it took them a while to find their new purpose, according to a survey by financial services firm Edward Jones. Returning to work may help. But many retirees have found other steps beneficial, such as adopting a pet, engaging more with their faith, traveling, trying out new hobbies or creative activities, and volunteering, a separate Edward Jones survey found.

“If you feel like you are set financially in retirement and don’t have to worry about money,” Ward says, “there are so many opportunities to do things other than work.”

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Kerri Anne Renzulli has worked as a personal finance and careers reporter for Newsweek, CNBC, and Money. Her writing has appeared in the Wall Street Journal, USA Today, Fortune, Time, Mansion Global, Glamour, Business Insider and Architectural Digest.