Can I Be Retired and Still Work?

The short answer to “can I be retired and still work?” is yes. Retirement does not have to be a single day on the calendar; you can phase into it. If you’re enjoying working, don’t feel like you have to retire. Work if you want to.

Some of my happiest retirement clients have picked up a part-time job, and it wasn’t because they needed the money; they just wanted to get out of the house, stay social, and stay active.

Staying active is often overlooked as a goal. But my mom is a great example. She just turned 81 a couple of weeks ago, and she works at a flower shop twice a week for four hours. She doesn’t need the money. But she loves people, and she loves being around flowers. It’s healthy to stay active!

Planning Ahead for Taxes

Working in retirement can help you emotionally. But remember, you have to make a plan for taxes, because Social Security may withhold part of your benefit if you are still working prior to reaching full retirement age (around age 67 for most people.)

In fact, your Social Security benefit could even be taxed if your income is high enough after full retirement age, up to 85% of it! And remember, if you are going to do gig work, consulting work, or work as an independent contractor, you may be liable for self-employment taxes on top of income taxes. The IRS says net self-employment earnings of $400 or more in 2026 will generally trigger a tax filing requirement.

And finally, planning for taxes in retirement is critical because a high income can result in higher premium costs for Medicare.

Planning ahead for taxes is yet another reason you should have a complete retirement plan and a retirement strategy put together that encompasses your income, potential tax liabilities, Social Security and Medicare, and all the other things you may face, like the need for long-term care someday.

Planning for Retirement

It’s all about retiring on your own terms and having your own personal playbook for it. If you’re out there working, saving, and creating a nest egg, there may be a false sense of, “I’m going to be okay,” and you might be. But without a plan, you really don’t know. Finding a reputable financial advisor specializing in retirement planning is the first step to knowing.

Whether you are getting close to retirement, or are already in retirement, you really need to have a strategy. It needs to be an ongoing strategy, and remember that the strategy is not set in stone. Flexibility is key.

It all starts with making sure you have enough income so that you don’t have to work, but work is optional.

The Income Gap

What is the income gap? The income gap is the difference between bringing in $3,000 a month in Social Security, pensions, and/or withdrawals, but needing to $4,000 a month in order to meet all your monthly expenses. That’s $1,000 income gap.

As a Certified Annuity Advisor^SM, I want to explore all the ways you could generate income for life so that income goes the other way. Like needing $3,000 but having a monthly income of $4,000—$1,000 extra—instead of the other way around. I will help analyze your options and show you the details, including potentially rolling part of your retirement portfolio or 401(k) into a lifetime annuity with a contractual guarantee from an insurance company.

We can do it over Zoom. We can do it over phone. We can do it in a meeting. We’ll take a look at taxes and Social Security… and how a high income can affect your Medicare by making it more expensive. And we have an expert in the office, Jeff, who’s been doing Medicare plans for 30+ years.

I’m an educator first. I like to educate first and advise second. And if I don’t know your situation and if you’re honest with me about your situation, whether it’s income, whether it’s growth, whether it’s legacy planning, whether it’s taxes, whether it’s Social Security, whatever it might be, let’s talk about it. (Check out my profile here: Dolph Janis.)