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John, 61, was all set for retirement.
He was approved for Social Security, and then, just before he gave his notice, was laid off. His severance package covered him until his Social Security payments could start.
With four years to go until 65, he would have to cover health insurance costs on his own.
A new opportunity then arose, making him reconsider his plans. John’s old employer offered him a team-leading, client-facing role in a department he had always wanted to join. The pay and benefits are strong.
He’s tempted, but he can’t see himself working beyond the end of the year. He also wonders if it’s fair to take a leadership job he intends to leave soon. Besides, going back to an employer that had already let him go once seems like a pretty big risk.
That’s the core of his dilemma. Here’s what else is at stake.
Let’s say John is married and that, hypothetically, his 60-year-old spouse has also been on his employer plan. His partner is two years away from Medicare eligibility.
The couple has roughly $1 million saved — about $940,000 in 401(k)s and IRAs and $60,000 in cash — with a nearly paid-off mortgage.
Americans believe they need about $1.26 million to retire comfortably in 2025, according to Northwestern Mutual. (1) So John and his wife are within striking distance of that “magic number” even without maximizing Social Security, but not quite yet.
Working longer would obviously boost their retirement savings. However, for John, the new job may be about more than just money.
Many older Americans say work also offers critical access to health insurance and Social Security benefits. Respondents to the University of Michigan’s National Poll on Healthy Aging (2) claimed other important factors include having a sense of purpose, contributing to society, keeping their brain sharp and maintaining social connections.
Read more: US car insurance costs have surged 50% from 2020 to 2024 — this simple 2-minute check could put hundreds back in your pocket
Taking the job could help John in four ways.
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1. Social Security. If John begins withdrawing Social Security at 62, he will receive about 30% less in monthly benefits than if he waits until he reaches 67, which is full retirement age (FRA). If he holds off until 70, he’ll earn delayed retirement credits of about 8% per year.
2. Health insurance. Staying employed until he is 65 can help John avoid expensive pre-Medicare premiums.
3. Increase savings. Working for even 12–24 months could allow him to top up his accounts and possibly utilize the age-based “super catch-up” provisions (3) of up to $34,750 in 2025 for individuals aged 60–63. From here, he may want to stash his cash in something like the Wealthfront Cash account, which could be a great place to grow your emergency funds, offering both competitive interest rates and easy access when you need cash.
A Wealthfront Cash Account can provide a base variable APY of 3.75%, but Moneywise readers can get an exclusive 0.50% boost over their first three months for a total APY of 4.25% provided by program banks on your uninvested cash. That’s over ten times the national deposit savings rate, according to the FDIC’s September report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, Wealthfront Cash account balances of up to $16 million are insured by the FDIC through program banks.
4. Health and happiness. There’s also a non-financial upside: Older adults who keep working often report stronger mental and overall well-being. (2) If the new role is genuinely interesting, John may enjoy staying in the workforce a bit longer.
John is in the lucky position of having a choice.
The benefits of taking the new client-facing, team-leading job include being better off financially — perhaps even physically and mentally as well. If he loves the work, values the benefits, can pause his Social Security claim, and is willing to give the role a good two-year run, then he should take the job.
A simple way to square ethics with opportunity is to accept that he can commit to 18–24 months and be transparent about a limited horizon.
Conversely, if John’s determined to stick to his plan of retiring within a year and is happy with the money he’s already saved, he may be better off turning down the offer. Exiting in under a year can create transition pain — and possibly bruise his relationship with his employer and colleagues.
It might make sense for John to consult with a qualified financial advisor to determine the best path forward. For personalized advice on retirement planning, the Advisor.com team can help. They can connect you with a financial advisor suited to your needs and based in your area. All of their advisors are pre-vetted fiduciaries, meaning that they have a legal obligation to act in your best interest.
After inputting your ZIP code to get matched with a nearby financial professional, you can set up a free call with no obligation to hire to make sure they’re a good fit for you. Advisor.com pairs you with between one and three advisors depending on your potential needs.
But, overall, John is in a good position either way.
If the job is truly the dream, the benefits suggest that he should do one last lap for two years. By then, he can retire on his terms. But he’s also in a good position to retire now and cover pre-Medicare insurance without straining the plan.
Whatever he chooses, it’s important he stays on top of his net worth so that he’s well prepared with income forecasts and any necessary budgeting.
With Monarch Money’s all-in-one budgeting app, John could keep a close eye on all his ingoings and outgoings.
Monarch Money puts all your finances under one roof, from your banking statements to your investments. You can also add separate or joint accounts to your dashboard, making it easy to track daily expenditures that both John and his wife make. The app is also well reviewed: Forbes ranked the platform as their best budgeting app for 2025, as did the Wall Street Journal.
And the best part? Monarch Money offers a seven-day free trial so you can find out if it’s right for you. If you like what you see, you could then snag 50% off with code MONARCHVIP.
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Northwestern Mutual (1); University of Michigan (2); Fidelity (3)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.