Retirement usually means you are done working and you can enjoy what you are passionate about. Many picture themselves sitting on a beach, hitting the golf course, or spending time with family. However, now it is much more common to continuing work after you “retire” from your career.
Working after retirement does not necessarily mean you have to work. It is a lifestyle reason as well, as many people enjoy working. It provides happiness and purpose. Staying in the working world can provide many benefits beyond the paycheck.
- Working helps you stay physically and mentally healthy. This makes you feel younger longer. Working also can keep you socially active, provide a sense of purpose, and prevents isolation.
- Many people just love their job and want to continue to work. You can also try new jobs or a new field with less stress or fewer hours.
There are obviously financial reasons to work as well. Individuals who work for financials reasons is usually a result of:
- Savings are not enough to support your retirement: Saving for retirement can be very difficult and many people are not setting enough aside for retirement. If you have not saved enough for retirement, you should consider continuing to work.
- Delay receiving social security: The longer you wait to receive social security, the bigger the monthly paycheck will be. This can add up over time and allow you to get a bigger cut.
- Learning a new skill: This may be purely for a non-financial reason, but if you are being productive in a new line of work, you might as well get paid for it!
- You may need health insurance: Coverage under Medicare doesn’t start until you reach the age of 65. If you are under that age, you may need to get a job so you can get adequate health insurance. Healthcare related expenses are only going to go up as you get older.
- Retirement investments has lost value: The stock market can be rather volatile and it would adversely affect you at the wrong time. If you have lost money due to the stock market or there is a dip in the housing market, you may be left in a bad financial position and need to work.
Working after retirement can give you a sense of purpose, a connection to your community, as well as supplemental income. If you are able to, and you want to, it may be a good idea to work in some capacity after retirement. Also, it helps limit your risk that your retirement savings don’t get depleted too quickly. Otherwise you could face serious financial problems.