According to an April 2007 report by the Employee Benefit Research Institute, 37 percent of retirees report having to go back to work after retirement. This is up from 27 percent in 2006. Finances were identified as one of the primary reasons.

When you factor in retirees unable to go back to work due to a health-related problem or caring for a spouse, the percent is much higher.

For some retirees, going back to work is more a matter of wanting to stay active and productive. For others, it is a financial necessity.  n either case, there are financial consequences to consider:

• It can decrease the benefit amount from Social Security for those who have begun receiving Social Security and have not yet reached the "full retirement age" (65 to 67, depending on when you were born).

• There is no change in the benefit amount from Social Security for those who have reached "full retirement age."

It is a good idea to check with the Social Security Administration before deciding to go back to work. They provide an online benefit calculator and useful information on their Web site www.socialsecurity.gov/retire2/whileworking.htm.  You can also reach them at 800-772-1213.

Other important considerations include a possible increase in your tax obligation and work-related expenses. Social Security benefits received at any age become partially taxable once your income exceeds a certain level (the specific amount is adjusted annually). Also, you have the expense of commuting to and from work. With the rising cost in gas prices, this may make going back to work cost-prohibitive.

An alternative for many retirees faced with having to go back to work is to take out a reverse mortgage, which enables homeowners 62 and older to convert the equity in their home into a lump-sum payment, monthly income, a line of credit, or a combination.  No repayment is required for as long as you occupy your home as your primary residence.

“Funds from the reverse mortgage do not affect Social Security or Medicare benefits,” said Mark C. McVearry, president, Academy Mortgage LLC (www.academyloansonline.com). “Our senior customers have been able to continue to enjoy their retirement with the peace of mind of knowing they will not outlive their retirement income.”

The money from the reverse mortgage is tax-free because it is not considered income.

As a retirement tool, the reverse mortgage is growing in popularity. The Department of Housing and Urban Development (HUD) reports a 73 percent increase in the number of reverse mortgages insured in 2006. Already this year there has been an increase of 54 percent in reverse mortgages compared to the same period in 2006.

For a list of the top 10 things seniors should know about reverse mortgages, visit www.hud.gov, select Senior Citizens under the “Information For ...” category bar, and then select Reverse Mortgages for Seniors.