Working after retirement isn’t such a bad idea for some people. There are a lot of reasons why someone might choose to work after they have retired. A part-time job is a great way to keep you busy and can also help bring in extra money to ensure that you have enough to live on.
Saving More Money
If you choose to work a part time job after you retire you can use that income to reduce the amount that you withdraw from your IRA, and this can allow your investment to grow. For example, if your part time job brings in $15,000 a year, you can withdraw that much less from your IRA. If you were to do this for 10 years and get tax-deferred growth at 8%, you would actually have over $200,000 more in your IRA.
Increasing the amount of money that you have in your IRA, can help to ensure that you have enough money to last you for the rest of your life, especially in the later years when you may not be able to work anymore.
Social Security Benefits and Working