Should You Work Past Age 65?

Federal Employee Articles

Should You Work Past Age 65?

Posted by Benchmark Financial Group, LLC
8 months ago | October 7, 2019

Some people choose to keep working past age 65, because they want to save a bit more money for retirement. Others got a late start with their careers. And then there are those who simply enjoy working, and aren’t ready to stop!

Whatever your reasoning, you might be wondering about the consequences of continuing to work past age 65. Here’s what you need to know.

How it will affect your Social Security benefits. Depending upon your year of birth, you are eligible for full Social Security benefits between ages 65 and 67. So, you very well might need to work past age 65 to access your full benefit.

But if you keep working beyond that point, you could actually earn an increase (of about 8 percent, for each year that you work beyond full retirement age). Continuing to work a bit longer could be a smart way to build a roomier retirement budget.

How Medicare will be affected. Like everyone else, you first become eligible for Medicare when you turn 65. In fact, everyone is required to enroll in Medicare when they turn 65, or else pay higher premiums later. But there’s an exception to this rule…

If you’re still working at that age, you are covered by your Federal Employees Health Benefits (FEHB) and are not required to enroll in Medicare yet. However, you need to remember to do so within 8 months of retiring, whenever that will be, or the premium penalty will apply.

And what about required minimum distributions (RMDs)? In most cases, retirees are required to begin taking distributions from retirement savings accounts by age 70 ½, or be charged a tax penalty. However, federal employees and their Thrift Savings Plans are not subject to this rule as long as you continue working past age 70 ½. But once you do retire, make sure to start taking your RMDs.

If you worked in the private sector in the past, and have a 401(k) or IRA, then you still need to take your RMDs from those accounts by age 70 ½ – even if you continue in your service as a federal employee.

If you have any questions about how a later retirement could impact your overall retirement plan, give us a call. We can help you learn what to expect, and make any necessary adjustments.

Have questions? Need assistance?

Use the form below to schedule an appointment.

Call 913-227-4224 or email