Key Points

• Early retirement doesn’t always work out.

• There can be benefits to re-entering the workforce, like saving money on healthcare.

• It may be the right move for your mental health more so than your financial health.

• The $23,760 Social Security bonus most retirees completely overlook ›

Early retirement is something a lot of people dream about. And if you were a terrific saver throughout your career, it’s an option you may have carved out for yourself.

But it’s not a given that early retirement works out for everyone who pursues it. And if you’re not at all happy with early retirement, there’s no reason not to go back to work. Here are some of the reasons why.

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1. You can still collect Social Security

You might assume that if you’ve started to collect Social Security, you won’t be able collect a paycheck from a job — or that once you start working again, your benefits will be taken away. That’s not necessarily true.

If you’re receiving Social Security before having reached full retirement age, you will be subject to an earnings-test limit. And exceeding that threshold could result in having Social Security withheld. But depending on the type of job you get and the number of hours you work, that may not happen.

Social Security’s earnings-test limits change from year to year. In 2025, you’ll lose $1 in Social Security per $2 you earn over $23,400. If you’ll be reaching full retirement age this year, you’ll lose $1 in Social Security per $3 you earn over $62,160.

So let’s say you aren’t a fan of early retirement and decide to start working part-time, but you only earn $1,900 a month. In that case, you can keep your paycheck in full and also collect your Social Security benefits in full.

To be clear, though, in this specific context, “lose” only means having benefits withheld, not forfeited. Once full retirement age arrives, you get that money back in the form of larger monthly payments.

2. You might enjoy huge savings on healthcare

If you retired before you were eligible for Medicare, it means you may be spending a fortune of money to buy a decent health insurance plan. If you go back to work, even on a part-time basis, you may be eligible for health insurance through whatever job you get. And the savings there could be huge.

It especially pays to consider this arrangement if you’re spending your savings at a faster rate than expected after having retired early. If you can get health coverage to tide yourself over until Medicare kicks in at 65, it could help you preserve your nest egg in a meaningful way — and also, eliminate some financial stress.

3. It could be the best move for your mental health

Early retirement might seem like a dream — until you realize you’re bored and restless most of the time. If you’re not happy with early retirement, there’s no shame in acknowledging that it didn’t turn out the way you had hoped. And if you feel you’ll be better off mentally working in some capacity, there’s no reason not to do that.

It’s also OK to admit that retirement can be lonely — even if you have a spouse or partner. Some people crave company and social interaction on a regular basis, and there’s absolutely nothing wrong with that. It’s better to be true to yourself and undo a decision that’s not addressing your emotional needs.

It’s a fantastic thing to be able to pull off an early retirement. But there’s also nothing wrong with going back to work after the fact. And you may find that working in at least some capacity is the right move for you all around.

The $23,760 Social Security bonus most retirees completely overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Join Stock Advisor to learn more about these strategies.

View the “Social Security secrets” »

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