Working in Retirement: Part-Time, Freelance and Encore Careers on Your Own Terms

Key takeaways

Many people choose to keep working in some form after retiring, for income, structure, social contact, purpose or simply enjoyment.

Options range from reduced hours with a former employer to freelancing, consulting, seasonal work, an encore career or a small business.

Work can affect your pension, tax and benefits. Rules differ by country and change, so check each before you start.

If you live abroad, check whether your residence permit allows work, including remote work for clients elsewhere.

Design work around your life rather than the reverse: decide in advance how many hours, which days and what you will say no to.

Age discrimination exists, but experience, reliability and networks are real strengths. Lead with them.

For previous generations, retirement often meant a clean break: a farewell party one Friday and no more work on Monday. Today, many people blur the line. They step down gradually, keep a foot in their profession, try something entirely new or start a small venture they always dreamed of. Some need the income; many simply find that some work, on their own terms, makes life better.

This guide explores the options, the benefits and pitfalls, and the practical rules to check, wherever you live. It sits alongside How to Find Purpose After Retirement, Volunteering in Retirement and Loneliness and Connection After Retirement.

Why people work in retirement

Reasons usually mix:

Money: topping up pensions, delaying withdrawals from savings, funding travel or helping family.
Structure: a reason to get up and a rhythm to the week.
Connection: colleagues, customers and a professional community.
Identity and purpose: continuing to use hard‑won skills and feel valued.
Learning: new challenges keep the mind active.
Enjoyment: some people simply love what they do.

Knowing your top reasons shapes what kind of work fits. If connection is the main draw, a solo freelance role may disappoint. If money is the main draw, a passion project with uncertain income may not deliver.

The financial case

Even modest earnings can make a meaningful difference to a retirement plan:

Fewer withdrawals early on reduce exposure to poor markets at the worst time. See Sequence‑of‑Returns Risk.
Deferring a state pension while working can increase it for life in many systems. See How State Pensions Work.
More time for savings to grow. See Retirement Drawdown and The 4% Rule Explained.

Work can also have costs: tax, reduced benefits in some systems, transport and equipment. Calculate the net gain.

Gradual retirement: an underrated option

Rather than a single retirement date, many people find a gradual glide path works better: full‑time work, then four days, then three, then a few projects a year. A glide path softens the emotional shock of stopping, keeps income flowing while savings grow, and gives time to build new routines and friendships before work ends entirely. If your employer or profession allows it, consider proposing a staged plan years before your intended retirement.

The options

Phased retirement with your employer

Reducing hours, days or responsibilities in your current role, sometimes as a formal phased retirement arrangement.

Pros: familiar work, colleagues and pay structure; easier to negotiate before you leave.
Cons: can be hard to let go of responsibilities; check how it affects workplace pension rules.
Tip: propose a specific arrangement, such as three days a week for a year, with a review date.

Part‑time employment in a new setting

Retail, hospitality, tourism, education support, administration, care, libraries, museums, garden centres, sport and leisure.

Pros: variety, social contact, clear boundaries.
Cons: lower pay; less control over schedule in some roles.

Consulting and freelancing

Selling your professional expertise to former employers, clients or new organisations on a project basis.

Pros: uses your experience; flexible; often well paid.
Cons: irregular income; you handle tax, insurance and administration; can grow into full‑time work if you are not careful.
Tip: set a maximum number of days a month and stick to it.

Interim and board roles

Short‑term leadership roles, non‑executive directorships and advisory boards.

Pros: influence and stimulation in limited time.
Cons: legal responsibilities; competitive.

Teaching, training and mentoring

Tutoring, adult education, university guest lectures, professional training, coaching.

Pros: passes on knowledge; meaningful; often flexible.
Cons: may need qualifications or registration.

Encore careers

A new career in a field with social purpose, such as education, health and care, environment or community work, often after retraining.

Pros: deep sense of purpose; fresh start.
Cons: retraining time and cost; possibly lower pay.

Seasonal and project work

Tourism seasons, festivals, harvests, tax season, exam invigilation, election work, film and event work.

Pros: intense periods of activity with long breaks between.
Cons: irregular; physically demanding in some roles.

Starting a small business

Turning a skill, hobby or idea into a business: crafts, food, consultancy, holiday rentals, repairs, online shops.

Pros: creativity and autonomy.
Cons: risk to savings; time demands; regulations.
Tip: start small, test demand, and limit how much of your savings you put at risk. Never stake money you need for essentials.

Remote work

Working online for clients or employers anywhere.

Pros: location‑independent; suits people living abroad or with limited mobility.
Cons: less social contact; legal and tax complexity across borders.

How work interacts with pensions and benefits

Rules vary widely. Questions to check with official sources:

State pensions

Does working affect your state pension? In some systems, earnings above a limit reduce pension payments before full pension age. The US, for instance, applies an annual earnings test to Social Security beneficiaries who are under full retirement age, though benefits withheld are later credited back (SSA, Receiving benefits while working). Other systems, such as the UK's, allow you to work and receive your State Pension without reduction (GOV.UK, Working after State Pension age).
Can you defer? Deferring while working may increase your pension later (GOV.UK, Deferring your State Pension).
Do you still pay contributions? Some systems stop charging social security contributions after pension age; others continue.

Workplace pensions

Some workplace pensions require you to stop working for the employer before drawing benefits, or restrict re‑employment.
Drawing from defined‑contribution pensions can, in some systems, reduce how much you can later contribute with tax relief.

Means‑tested benefits

Earnings may reduce means‑tested support. Check thresholds.

Tax

Earnings add to pension income and may push you into higher tax bands. Plan withdrawals around earnings.

Working when you live abroad

Retirees living abroad face particular questions.

Residence permit conditions

Many retirement, passive income and non‑lucrative visas prohibit or restrict work. Some treat remote work for foreign clients as work; some do not; many are unclear. Breaching conditions can jeopardise your residence. See Retirement Visas Explained and How to Retire Abroad. Check with the immigration authority, in writing if possible.

Tax residence

If you are tax resident where you live, earnings from anywhere may be taxable there, and possibly also where the work is done or the client is based. Some countries also tax citizens wherever they live, such as the United States (IRS).

Self‑employed earnings may trigger social security contributions in your country of residence. Agreements between countries determine where you contribute; within the EU, coordination rules apply (European Commission).

Practicalities

Local business registration, invoicing rules, professional insurance and banking can all differ. Take local advice before starting.

Age, discrimination and confidence

Age discrimination in hiring exists. The WHO describes ageism as widespread and harmful to health and wellbeing (WHO, Ageism). Many countries have laws against age discrimination in employment, though protection varies.

Practical approaches:

Lead with what you offer: experience, judgement, reliability, networks and calm under pressure.
Update skills where useful, particularly digital tools.
Use your network. Many roles after retirement come through people you know.
Tailor your CV: focus on recent and relevant achievements; you need not list every job from decades ago.
Consider employers with age‑inclusive policies or sectors that value experience.
Be clear about what you want: flexible hours, specific projects, a set term.

Designing work around your life

The greatest freedom of work in retirement is choice. Use it deliberately.

Set your limits first

Before saying yes to anything, decide:

Maximum hours per week or days per month.
Which days are protected for family, health, travel and rest.
Minimum rate or value that makes work worthwhile.
How long you will commit before reviewing.

Protect the rest of your life

Work should support, not crowd out, relationships, health and other sources of purpose. Many people find a balance such as two or three days of work, one of volunteering or learning, and the rest for family, friends and rest.

Review regularly

Every six months ask: Is this still enjoyable? Is it worth it financially? Is it crowding out anything important? Adjust without guilt.

Three illustrative paths (hypothetical)

The engineer who consults two days a week. On retiring, he agrees with his former employer to consult on specific projects, capped at a set number of days per month. The income lets him delay drawing from his savings for several years. When a client asks for full‑time help on a big project, he declines and recommends a younger colleague, protecting the life he wanted.

The nurse who became a tutor. After a career in hospitals, she wanted something calmer. She trains to tutor adults in health‑related subjects at a local college, two evenings a week. She enjoys the contact with students and finds it uses her experience in a new way.

The couple who opened a small guesthouse abroad. Before buying anything, they check that their residence permits allow them to run a business, register it properly, and take advice on tax in both countries. They start with two rooms and only open in the high season, keeping winters free for travel and family.

Questions to ask before saying yes

Why do I want this particular work: money, people, purpose or enjoyment?
How many hours will it really take, including travel and preparation?
What will I earn after tax, costs and any reduction in benefits?
Does it fit my residence permit, pension rules and insurance?
What will it stop me from doing?
How easily can I step back if I want to?
Who will I meet, and will I enjoy working with them?

If the answers are clear and positive, it is probably a good fit. If they are vague, try it for a fixed period first.

Work in later life around the world

Attitudes to work after pension age differ between cultures and labour markets. In some countries it is common for people to keep working part‑time well into their seventies, in family businesses, agriculture, crafts or professions. In others, a firm retirement age and generous pensions make work after pension age less common. Some societies have strong traditions of older people as mentors and advisers; others have been slower to value experience.

If you move country, find out how work in later life is viewed locally. In some places, part‑time work or a small business is a natural way to integrate and meet people; in others, it may be harder to find roles open to older newcomers, and volunteering may be the more accessible door. Either way, contributing your skills is often the fastest route to belonging. See How to Compare Cost of Living Between Countries for how earnings fit a budget abroad.

Health and work

Work can support health through activity, social contact and mental stimulation, but it can also strain it. Choose roles that suit your physical capacity, and renegotiate as it changes. If you have a health condition, ask about reasonable adjustments, which some countries require employers to consider. For the wider health picture see Healthcare When You Retire Abroad and Long‑Term Care Explained.

Work and family

Many people in retirement also care for grandchildren or ageing relatives. Work can conflict with these roles or offer a welcome balance. Discuss expectations openly with your family. If caring for someone, look into carers' rights and flexible working where you live.

Planning the end of work

Eventually most people stop working entirely. Planning that transition helps:

Hand over clients or responsibilities gradually.
Replace the social and structural benefits work gave you with other activities.
Update your financial plan for the loss of earnings.
Review legal documents, especially if you ran a business; see Wills and Estates Across Borders, Power of Attorney Across Countries and Advance Directives Explained.

A working‑in‑retirement plan

Rank your reasons for working.
List skills and interests you could offer.
Decide your limits: hours, days, minimum value, review date.
Check pension, tax, benefit and visa rules.
Explore options through your network and local opportunities.
Try a role for a defined period.
Review every six months.

Frequently asked questions

Can I work and receive my state pension?

In many countries, yes. Some systems reduce pensions if you earn above a limit before full pension age. Check your pension authority's current rules.

What are good jobs for retirees?

Consulting and freelancing in your field, tutoring and mentoring, part‑time roles in retail, tourism, museums or education, seasonal work, board roles, and small businesses based on skills or hobbies. The best fit depends on your reasons for working.

Will working affect my taxes in retirement?

Earnings add to your taxable income and may increase your tax rate. Plan pension withdrawals around earnings to manage tax.

Can I work if I retire abroad?

It depends on your residence permit. Many retirement visas restrict work, sometimes including remote work. Check with the immigration authority before starting.

How do I deal with age discrimination when job hunting?

Emphasise experience and reliability, update key skills, use your network, and focus your CV on recent relevant achievements. Many countries have legal protections against age discrimination.

Should I start a business in retirement?

It can be rewarding, but start small, test demand, and never risk money you need for essentials.

How many hours should I work in retirement?

Whatever leaves time for health, relationships and rest. Many people find a few days a week or a set number of days a month works well.

Keep exploring onwora

Place: How to Choose Where to Retire · How to Retire Abroad · Retirement Visas Explained · How to Compare Cost of Living Between Countries
Money: Retirement Drawdown · The 4% Rule Explained · Sequence-of-Returns Risk · How State Pensions Work
Health: Healthcare When You Retire Abroad · International Health Insurance Explained · Types of Healthcare Systems · Long-Term Care Explained
Purpose: How to Find Purpose After Retirement · Loneliness and Connection After Retirement · Volunteering in Retirement · Working in Retirement
Legacy: Wills and Estates Across Borders · Forced Heirship Explained · Power of Attorney Across Countries · Advance Directives Explained

This guide is general information, not legal, tax, financial or immigration advice. Rules change; check official sources and take qualified advice.