More Americans are choosing to work part-time during retirement, driven by a combination of financial pressures, rising healthcare expenses, longer lifespans, and a desire to stay engaged and purposeful. For many retirees, part-time work provides a way to bridge income gaps, maintain social connections, and keep skills current without committing to full-time employment.
According to the Employee Benefit Research Institute’s 2025 Retirement Confidence Survey, three-quarters of current workers expect to continue working in some capacity after they retire, and nearly 29% of retirees are already working. These figures reflect a shift in how retirement is defined: instead of a single transition from career to leisure, retirement increasingly looks like a gradual change in work patterns and income sources.
Financial advisers are adapting to this new reality by taking a more holistic approach to retirement planning. Rather than focusing only on portfolio growth, advisers are emphasizing long-term cash-flow management, health expense forecasting, and strategies that balance income needs with lifestyle goals. This broader perspective helps clients create flexible plans that account for part-time earning, changing healthcare costs, and the possibility of longer retirement periods.
Employers also play a role in this trend. Businesses that welcome older workers and design flexible, part-time positions can benefit from experienced talent while helping retirees remain economically secure and engaged. Flexible scheduling, phased retirement options, and roles that value institutional knowledge are among the practices that make it easier for retirees to stay in the workforce.
For retirees weighing the decision to work, the considerations are practical as well as personal. Part-time work can supplement Social Security and retirement savings, ease the transition from a full-time career, and provide structure and purpose. At the same time, retirees should consider how earnings may affect benefits, tax obligations, and the timing of major financial decisions.
As more Americans redefine retirement to include part-time work, the combined efforts of advisers, employers, and individuals can create sustainable, adaptable strategies that support longer, healthier, and more financially stable retirements.