More Americans now work while collecting Social Security, creating a phased retirement shaped by rising costs, longer life spans, and multigenerational responsibilities.
The changing architecture of retirement
More Americans now collect Social Security while continuing to work, creating a phased transition instead of a fixed retirement date. Research from the Center for Retirement Research at Boston College shows that about 40 percent of beneficiaries work at some point after they claim benefits. Rising longevity, higher living costs, and shifting expectations about retirement contribute to this trend. It is also common among Filipino American households, where older adults often support multigenerational families in the United States and abroad.
A growing workforce of older Americans
Government labor data confirms this shift. The Bureau of Labor Statistics reports that in 2024, 19.5 percent of adults 65 and older stayed in the labor force. Among seniors who worked, 38.3 percent held part-time jobs, reflecting a deliberate move toward lighter schedules rather than complete withdrawal from employment.
Economic conditions influence these decisions. Inflation continues to push up the cost of housing, groceries, transportation, and medical care. Many seniors believe the projected 2026 Social Security cost-of-living adjustment (COLA), currently estimated at 2.8 percent, will not fully cover rising expenses. Surveys show that older Americans continue working to stabilize monthly budgets, maintain savings, and assist family members with childcare, rent, or health-care costs.
In Filipino American communities, later-life work often supports remittances and shared household expenses across generations.
How Social Security treats work and earnings
The Social Security Administration allows beneficiaries to work while receiving retirement or survivors benefits. Three sets of rules define how earnings affect benefits: the earnings test, taxation, and benefit recalculations.
Earnings test.
Claiming benefits before full retirement age (FRA) subjects earnings to annual limits. In 2025, SSA withholds $1 in benefits for every $2 earned above $23,400. In the year a beneficiary reaches FRA, SSA withholds $1 for every $3earned above $62,160, counting only earnings before FRA month. When the worker reaches FRA, SSA recalculates the benefit, crediting months when payments were withheld. This recalculation raises the monthly benefit permanently.
Income taxes.
Working while collecting benefits can increase the portion of Social Security subject to federal income tax. Taxation begins when “combined income” exceeds $25,000 for single filers or $32,000 for married couples filing jointly. Up to 85 percent of benefits may be taxable at higher income levels.
Higher future benefits.
SSA calculates benefits using a worker’s highest 35 years of earnings. If new earnings exceed earlier low-earning years, SSA replaces those years in the formula and increases the benefit accordingly.
The changing architecture of retirement
The line between work and retirement has shifted from a single decision to a multi-year adjustment. Many seniors rely on employment to counter rising living costs, maintain health insurance, and support family members. Filipino American seniors often continue working in caregiving and health-care roles that depend on experienced workers.
This evolving model brings advantages and tradeoffs. Earnings provide stability, but they can reduce benefits before FRA, raise Medicare premiums, or increase tax obligations. Physically demanding work may also strain older adults.
As retirement becomes more complex, experts encourage seniors to monitor earnings and benefit estimates through a my Social Security account and seek professional guidance when needed. For many households, combining work and Social Security now functions as a deliberate strategy – one that reflects the new architecture of aging, family responsibility, and economic reality in the United States.
