Nearly a quarter of older workers who describe themselves as "retired" are still working, either full time or part time, and many say working longer pays them big dividends--financial, emotional, or both. Paul J. Lim, writing for U.S. News & World Report, details many of these advantages of "unretirement." Among other things,
- working longer gives retirees more time to save--"If you keep working for even two additional years, that's two more years to sock away money into your retirement accounts."
- retirees can delay taxes by postponing withdrawals from 401(k) and traditional IRAs;
- one can delay tapping into Social Security and thus boost monthly payments;
- retirees can maintain healthcare coverage; and
- retires can reduce their withdrawal rate in retirement.