Why Remote Work Could Be the Lifeline Your Retirement Needs

If you’re worried about being able to afford retirement, remote work might be your lifeline. Not only can it extend your career, it can also redefine what retirement looks like altogether.

Roughly 40% of Americans say they plan to work during their retirement years, according to a study by Northwestern Mutual. That figure climbs to 45% for millennials and 48% for Gen Xers, many of whom aren’t just trying to stay active—they’re trying to stay afloat.

For older workers in particular, the rise of remote work could offer the flexibility and freedom to ease into retirement instead of falling off a financial cliff.

How Remote Work Extends Career Longevity

The decision to work remotely during retirement is often about flexibility, financial independence, and staying mentally stimulated.

“Numerous studies have linked enjoyable and engaging work to a longer and happier life,” said Kevin C. Feig, the founder of Walk You To Wealth. Plus, financial independence “provides you with wealth, which translates into choice—allowing you to pursue as much, or as little, work as you desire,” he said.

That sentiment rings true for many older Americans, especially Gen X. According to Northwestern Mutual, 56% of Gen Xers who plan to work in retirement say they’ll need the income.

For those without the stamina for long commutes, remote work is proving critical. Dropping your commute “can save some people hours each day,” said Samantha Mockford, associate wealth advisor at Citrine Capital.

It can also reduce expenses like gas, parking, and car maintenance. “These lower expenses give some freedom for reduced hours and a reduced income while increasing quality of life,” Mockford said.

Remote work is also keeping people in the workforce longer simply because it makes life more livable. “People are more likely to work longer if they can work remotely,” said Justin Pritchard, founder of Approach Financial. “You still have to work, but you have a lot more flexibility.”

Remote-Friendly Industries for Older Workers

Knowledge-based roles—such as consulting, financial advising, or project management—tend to dominate remote work options for older professionals, Pritchard said. “In some industries, you need to be physically present, and it’s just not feasible,” he said.

Feig also suggested paying attention to long-term trends. He pointed out that traditionally remote-heavy fields, such as customer service, are rapidly adopting automation, so they might not be the most reliable long-term options.

Ultimately, it’s about finding what works best for you and your retirement timeline.

Making the Transition Work for You

To find out if working remotely makes sense for you, take time to really understand your personal and financial goals.

Mockford said that working through retirement—especially in a flexible, remote setup—can offer you more options or make financial goals easier to reach. “People can delay receiving Social Security benefits, getting a larger monthly benefit later,” she said. In addition, retirees can invest more aggressively if they’re not yet tapping into their retirement accounts.

But there are downsides to consider. “If you’re not in the office regularly, you might be less likely to get promotions,” Pritchard said. That can hurt pension benefits and even Social Security payouts, which are based on your 35 highest-earning years. If you’ve worked for many years, one or two years of lower earnings might not move the needle, but the impact can be bigger with pensions that look at your last three years of earnings.

Personal goals are just as important. “If your dream is to live in Tahiti and enjoy the beach during the day, you’ll want to ensure your remote job doesn’t require you to work during peak beach hours or travel significantly,” Feig said.

The Bottom Line

Remote work is helping older Americans stay employed and giving them a more flexible on-ramp to retirement. Whether you’re working part-time from an Airbnb in Lisbon or staying put in your hometown office, the flexibility to earn while aging can help stretch your savings, grow your Social Security benefits, and enjoy the lifestyle you’ve worked hard to build. Don’t forget that you’ll still have to plan your retirement just as carefully.