Paul Butler worked as a dentist for 43 years before retiring three years ago at age 69.

He was done filling teeth but quickly found that he had too much time to fill. He returned to work part-time as an activities instructor at a senior living center.

As people live longer and healthier lives, more individuals are choosing to continue working well past the traditional retirement age of 65. Sometimes, it’s by necessity—they need the money—and sometimes, it’s by choice. Staying in the workforce offers social, emotional, and health benefits.

According to the Transamerica Center for Retirement Studies, nearly half of the Baby Boomers still in the workforce expect to keep at it after age 70.

Pew Research Centers says workers over the age of 75 are the fastest-growing segment of the workforce, and that trend is expected to continue over the next decade.

Financial Benefits of Working Past Retirement Age

The most obvious benefit to working past retirement age is you have more time to build up your nest egg and fewer years that you are dipping into it to pay for everyday expenses. Each dollar you earn is essentially a dollar you are not withdrawing from your savings.

Even though there is no magic number you need to hit, about half of all workers have not saved enough for a long and comfortable retirement. For many of them, it’s not really a choice. They need to keep working. In addition, while you’re still working, you can continue to fund your retirement accounts, collect employer matches, and reap some tax benefits. Older workers can contribute up to $30,500 to their 401(k) accounts this year.

Some people can also increase their Social Security payout by delaying when they start collecting benefits and by adding to lifetime earnings, which can increase their benefits.

Each year that you delay collecting Social Security between FRA and age 70 increases your benefit by about 8 percent a year.

Health Benefits Associated with Working Past Retirement Age

Some studies show people who work longer have lower rates of dementia and other cognitive declines.

Just the fact that you keep mentally stimulated and keep using your brain can significantly decrease the risk of dementia, according to a 2020 study in the Lancet medical journal.

The belief is that working keeps your mind sharp. It’s the use-it-or-lose-it theory.

Status and Social Interactions

Many people’s self-identification and self-worth are closely tied to the job and the job title. It’s not easy to step away from that.

Continuing to work after retirement can provide structure and meaning to daily life. Many retirees struggle with transitioning to the slower pace of retirement, especially when you go from a pedal-to-the-metal job to a full stop.

A part-time job, a consulting gig, or even a volunteer position can help fill this gap.

Butler, the Philadelphia-based retired dentist, likes his job at a senior living center because it keeps “my mind busy and body active.” He adds that “it turned into really caring for residents” there.

He plans to continue the two-day-a-week job for another three years until he’s 75.

Butler adds that “being employed gives me purpose. I was a boss for up to 6 people for a long time, and now being just one of the working bees was different.” He also says, only half seriously, “taking orders wasn’t that difficult [after] being married for almost 52 years!”

For some people, leaving a job also means leaving behind work friends and colleagues.

Continuing to Work May Not Be for Everyone

For each reason you might want to work later in life, there is also a reason not to do so – even the finances.

While working longer can extend your earnings years, it might also reduce eligibility for certain benefits. Some of your benefits might be temporarily withheld if you start collecting Social Security while still working. (Check the Social Security website for a detailed explanation. In addition, some pension plans lower or suspend benefits if you’re still on the job.

Collecting a paycheck along with Social Security, a pension, dividends, interest, and capital gains could push you into a higher tax bracket. That is especially true for people 73 and older, who must take Required Minimum Distributions (RMDs) from their retirement accounts.

Beyond finances, work may be more stressful than fulfilling. You’ve put in your time; stepping away may be the best thing for your physical and mental health. You are allowed to enjoy retirement and not feel guilty about it. As Jerry Seinfeld said, “Not that there’s anything wrong with that.”

More time for leisure activities, especially exercise, can benefit your health as much as the pluses of working. There’s also the fear-of-missing-out factor: your friends are out golfing, and you’re squirming at your desk.

Health is another key factor in continuing to work, especially in physically demanding jobs. And ageism is a real impediment to finding work for people switching jobs. It’s illegal to discriminate against people because of their age, but that doesn’t mean it’s not happening.

As you see, there are many moving parts to your decision about whether to keep working. Talking to a financial adviser at EKS Associates can help you process your options.