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Elise, 61, was all set for retirement.
She was approved for Social Security, and then, just before she gave her notice, was laid off. Her severance package covered her until her Social Security benefits began.
With four years to go until 65, she would have to cover health insurance costs on her own.
But a new opportunity arose, prompting her to reconsider her plans. Elise’s old employer offered her a team-leading, client-facing role in a department she had always wanted to join, with strong pay and benefits.
She’s tempted, but she can’t see herself working beyond the end of the year. She also wonders if it’s fair to take a leadership job she intends to leave soon. Besides, going back to an employer that had already let her go once seems like a pretty big risk.
That’s the core of her dilemma. Here’s what else is at stake.
Let’s say Elise is married and that, hypothetically, her 63-year-old husband has also been on her employer plan. Her partner is two years away from Medicare eligibility.
The couple has roughly $980,000 saved — about $900,000 in 401(k)s and IRAs and $80,000 in cash — with a nearly paid-off mortgage.
Americans believe they need about $1.26 million to retire comfortably, according to a 2025 study from Northwestern Mutual (1). So Elise and her spouse 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, allowing her to close the $280,000 shortfall. However, for Elise, 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.
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Taking the job could help Elise in four ways:
1. Social Security
If Elise begins withdrawing Social Security at 62, she will receive about 30% less in monthly benefits than if she waits until she reaches 67, which is full retirement age (FRA). If she holds off until 70, she’ll earn delayed retirement credits of about 8% per year.
2. Health insurance
Staying employed until she is 65 can help Elise avoid expensive pre-Medicare premiums.
3. 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, Elise may enjoy staying in the workforce a bit longer.
4. Increased savings
Working for even 12–24 months could allow her to top up her accounts and possibly utilize the age-based “super catch-up” provisions (3) of up to $35,750 in 2026 for individuals aged 60–63.
From here, she may want to stash this extra cash in a high-yield account to ensure her money keeps up with inflation.
Something like a Wealthfront Cash Account could be a good option, as it allows users to earn up to 4.05% APY — a 3.30% base rate plus 0.75% APY boost for the first three months — on their savings. That’s over ten times the national deposit savings rate, according to the FDIC’s February report.
With no minimum balance or account fees, 24/7 withdrawals and free domestic wire transfers, Elise can ensure her funds remain accessible at all times.
Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
Elise is in a lucky position to have a choice.
The new client-facing, team-leading job leaves her better off financially — perhaps also physically and mentally. If she loves the work, values the benefits, can pause her Social Security claim and is willing to give the role a good two-year run, then she should take the job.
A simple way to square ethics with opportunity is to accept that she can commit to 18–24 months and be transparent about a limited horizon.
Conversely, if Elise is determined to stick to her plan of retiring within a year and is happy with the money she’s already saved, she may be better off turning down the offer. Exiting in under a year can create transition pain — and possibly bruise her relationship with her employer and colleagues.
But either way, Elise is in a good position.
If the job is truly her dream, the benefits suggest that she should do one last lap for two years. By then, she can retire on her terms. But she’s also in a good position to retire now and cover pre-Medicare insurance without straining the plan.
Whatever she chooses, it’s important she stays on top of her net worth so that she’s well prepared with income forecasts and any necessary budgeting.
It might make sense for Elise to consult with a qualified financial advisor to determine the best path forward.
For personalized advice on retirement planning, Advisor.com can connect you with a vetted FINRA/SEC-certified expert near you for free.
From their database of thousands, you will be matched with a pre-screened financial advisor who meets your specific needs. Set up a free, no obligation consultation today to find the right advisor for you.
While it’s always nice to have more, Elise and her husband are already ahead of many Americans when it comes to retirement savings. Households between 55 and 64 have an average balance of around $537,560, and Elise’s nest egg is much larger than that (4).
Still, retiring early can create new financial pressure. If she steps away from work at 61, Elise will need her savings to last longer — and claiming Social Security early would mean her monthly checks could be reduced to about 70% of their full value.
To ensure she has enough to last throughout these additional years, it’s important to create and follow a budget. This will let her see exactly how much she spends in a given month and year, and plan accordingly.
But budgeting doesn’t come naturally to everyone. It can feel tedious even for those who love numbers.
A platform like Monarch Money can help simplify the process. Monarch Money puts all your finances under one roof, making it easy to see how much you have, how much you spend and how you spend it.
Once you link your accounts — including investments and real estate accounts — you can view every transaction through one clean, searchable list, allowing you to quickly spot unexpected charges like unwanted subscriptions and cancel them. You can even get custom notifications regarding upcoming bills, reducing the chance of missing a payment and incurring late fees.
Monarch Money helps you forecast your spending beyond just one month, so you can plan for the retirement of your dreams.
Even in retirement, Elise could still look for ways to invest, but without a steady paycheck, large investments may not be possible. At this stage of life, smaller investments are a more realistic way to maintain growth over time.
That’s where tools like Acorns can help. The platform allows users to invest spare change automatically.
Signing up for Acorns takes minutes: Just link your card, and Acorns will round up each purchase to the nearest dollar and invest the difference into a diversified portfolio of ETFs.
Just $30 in weekly roundups could grow to nearly $90,000 over 20 years if it compounds at an average annual return of 10% — meaning by the time Elise reaches 81, she could have an extra $90,000 to spend on healthcare and other needs.
With Acorns, you can invest in an index ETF with as little as $5 — and if you sign up today and set up a recurring investment, Acorns will add a $20 bonus to help you begin your investment journey.
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Northwestern Mutual (1); University of Michigan (2); Fidelity (3); Kiplinger (4)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
