Marketwatch explores the impact of working during retirement on social security benefits. The article begins as follows:
For many people, retirement can be a difficult transition. Some miss the day-to-day camaraderie of work life while others miss that sense of purpose. Having so much free time isn’t as easy as it may seem. There are some instances when financial demands require a return to at least a part-time if not full-time “retirement” career.
Increasingly retirees are shunning traditional retirement and instead are exploring a return to work. Interestingly, studies have shown that longevity increases in places where people stay active during retirement years. Chianti, Italy is often cited as an example, not from drinking the wine as many suspect, but because older people continue to be engaged in family businesses — tending the fields, conducting wine tours and stomping the grapes.
So how does this trend affect one’s Social Security benefits? What are the timing issues and financial considerations that should be taken into account? Let’s look at a fictional, yet very plausible, scenario to better understand the impact of working in retirement on Social Security.