Working Part-Time in Retirement: Benefits and Pitfalls
For many Australians, retirement no longer means giving up work altogether. Increasingly, retirees are choosing to work part-time.
Why People Choose to Keep Working
There are many reasons retirees continue working after reaching retirement age.
Financial benefits
A part-time income can help stretch your superannuation further, reduce the amount you need to withdraw each year, and provide greater financial flexibility.
Health and purpose
Work offers more than just a pay cheque. It can provide routine, a sense of purpose, social interaction, and the satisfaction of continuing to use your skills and experience.
Greater flexibility
Many employers now offer flexible work arrangements, including part-time roles, consulting opportunities, job sharing, and remote work, making it easier to balance work with retirement.
The Pitfalls
- Extra income may reduce Age Pension payments due to the income test
- Tax may become more complex
- Time spent working could limit lifestyle pursuits
The Work Bonus
The government’s Work Bonus allows pensioners to earn up to $11,800 a year without affecting their pension.*
Part-time work can provide the best of both worlds – income plus engagement – but it’s important to understand how it interacts with your benefits and lifestyle goals.
References
- Services Australia. Age Pension and Work Bonus, 2025.
Disclaimer: This information is of a general nature only and does not constitute advice. It has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Hendrie Financial Strategies is a corporate authorised representative of the Madison Financial Group Pty Ltd, Australian Financial Services License No 246679, ABN 36 002 459 001.
