More Older Americans Keep Working as Retirement Plans Evolve

ATLANTA, Ga. (ATL Live) - A growing share of Americans are choosing to stay in the workforce beyond traditional retirement age, often balancing financial realities with the desire to remain active and engaged. Local financial professional Abby Reed, founder of Reed Financial Group, joined WANF’s Atl Live to explain why retirement is shifting and what it means for those planning their later years.

Reed notes that many retirement-age workers cite mental sharpness, physical activity and social connection as key reasons they continue working. For others, paychecks remain a necessity, especially as surveys show that a significant portion of Americans have little or no retirement savings. Continued employment can help people “catch up” on savings and give investment accounts more time to grow before withdrawals begin.

Working in retirement can also support health and community ties. Regular interaction with coworkers and clients can help combat loneliness, while a structured workday may reduce the risks associated with a sedentary lifestyle, including chronic conditions and mental health challenges.

At the same time, Reed cautions that earning income in retirement carries financial trade-offs. For those who claim Social Security before full retirement age, there are annual earning limits that may temporarily reduce benefits if wages exceed set thresholds. Additional income can also push retirees into higher tax brackets, particularly when combined with required minimum distributions, pension payments and Social Security benefits. Some savers may look at strategies such as converting certain tax-deferred accounts to Roth accounts to manage long-term tax exposure.

Reed encourages individuals nearing retirement to take a close look at their savings, projected expenses and lifestyle goals. Assessing whether current assets can sustain a desired standard of living — and whether part-time or full-time work should remain part of the picture — can help determine if “work-optional” retirement is realistic. Beyond the numbers, prospective retirees are urged to consider how they will spend their time, from hobbies to family commitments, to ensure that stepping away from the workforce supports both financial and personal wellbeing.

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