What the Data Shows

The Employee Benefit Research Institute’s 2025 Retirement Confidence Survey highlights the scale of this shift: 75% of current workers say they plan to work during retirement, and 29% of retirees are already working part-time. These figures underline a clear expectation and reality—retirement for many is not a definitive end to work, but a transition to different patterns of employment.

Key Drivers Behind the Trend

Several factors are pushing more people to work part-time in retirement. Financial needs remain a primary reason, as households confront rising living expenses and uncertain investment returns. Healthcare costs are a major concern for older adults; increasing premiums, out-of-pocket expenses, and long-term care considerations can make supplemental income necessary even for those with savings or pensions. Longer lifespans mean retirement can last decades, increasing the importance of sustainable income strategies. Equally important, many retirees seek social connection, mental stimulation, and a sense of purpose that work can provide.

How Financial Advisers Should Respond

Financial professionals are encouraged to move beyond a narrow focus on asset accumulation and embrace a holistic approach to retirement planning. That means prioritizing long-term financial management: cash-flow planning that accounts for phased retirement and part-time income, strategies to address longevity risk, and tax-efficient withdrawal sequencing. Advisers should also build healthcare cost scenarios into retirement plans and consider flexible Social Security and pension claiming strategies tailored to each client’s timeline and goals.

Holistic planning emphasizes lifestyle goals as much as balances and returns. Advisers can help clients think through when and how they might work in retirement, what types of roles align with their skills and interests, and how part-time work could interact with benefits like Social Security, Medicare eligibility, and employer-sponsored plans. Clear, practical projections that show the effect of part-time income on sustainability of savings can reduce uncertainty and help retirees make informed choices.

What Employers Can Do

Employers who want to attract and retain older workers should adapt to this evolving labor market. Offering flexible, part-time roles, remote work options, shorter workweeks, and phased-retirement programs can make it easier for experienced employees to remain engaged without committing to full-time schedules. Job redesign—breaking roles into modular projects or consulting arrangements—allows organizations to benefit from institutional knowledge while providing retirees with meaningful, manageable work.

Training and ergonomic support also matter. Employers that provide upskilling opportunities and ensure workplaces are accessible and age-friendly can tap into a motivated and reliable talent pool. In addition, clear communication about benefits, rehire policies, and how part-time work affects eligibility for employer-sponsored programs helps retirees make informed decisions about returning to work.

Practical Steps for Individuals

For those considering part-time work in retirement, practical planning improves outcomes. Start by reviewing expenses and projecting how healthcare and housing costs might change. Discuss retirement timing and income options with a qualified adviser, and consider how part-time earnings will interact with Social Security and Medicare. Update or maintain professional skills, pursue roles that match your interests and energy levels, and test part-time arrangements on a temporary or seasonal basis if possible.

Networking and exploring flexible opportunities—consulting, freelancing, project-based work, or part-time roles in nonprofits and community organizations—can reveal options that provide both income and personal fulfillment. Balancing financial needs with lifestyle choices helps ensure retirement remains both secure and satisfying.