The Great Unretirement: Medicare, Social Security and Tax Implications

by Prof. Robert Bloink and Prof. William H. Byrnes

The so-called “Great Resignation” that occurred during the COVID-era was surprising on many different levels—but, in many cases, could be explained due to COVID-related health and safety issues. Now that those issues have largely stabilized, a new trend is emerging: “unretirement”. One study has found that as many as one in eight retirees between ages 65 and 85 plan to return to work during 2025. While returning to work can be beneficial for retirees and businesses alike, it’s critical that clients understand the tax and financial repercussions of returning to work before they decide to unretire. Social Security, Medicare and the client’s retirement income planning can all be impacted, so it’s incredibly valuable to explore the pros and cons of unretirement before making a decision.

Factors Driving the Unretirement Trend