One of your new years resolutions may be to move along the path to retirement in 2018. As you do, some of you may consider retiring then going back to work. More than 40% of Boomers will continue to work
after they retire for many reasons, one of these reasons is to ensure that retirement
savings will last throughout retirement.
From the perspective of an early Boomer (it
means I and my friends are ahead of the curve and I refer to those born between
1946 and 1950), it appears that of the 40% or so of us who continue to work
will work for about 9 or 10 years beyond retirement. This is not based on any
scientific study but I am sure there are those out there studying this issue. I
am basing this on my circle of friends and acquaintances who are all early
Boomers. I also asked why they continued to work. Here are some of their
answers in no particular order.
1. Working Helps You Stay Physically
and Mentally Healthy
Not only
can working delay the onset of age-related diseases like dementia, but keeping
mentally and physically active helps you feel younger longer. Working also keep
you socially active and prevents isolation, and can provide a sense of purpose.
2. You Enjoy Your Work or Want to Take on a Different Role
Like many
people, you may continue to work simply because you truly love your job. You
may even be able to remain in the same field, but take on different jobs that
are more fulfilling or require fewer hours.
3. You May Simply Want to Work Part-Time Instead of Full-Time
Working
full-time usually means structuring your whole life around your job, and this
can become physically and emotionally draining. However, switching to a job
with fewer hours and more flexibility offers similar rewards to working
full-time, but provides flexibility and more free time.
4. You Want to Try a New Line of Work
Once you
begin receiving Social Security or a pension, you may be more concerned with
doing something you love rather than bringing home a large income. Many retired
folk train for new careers or begin new jobs doing something they enjoy, even
though it may not be as remunerative as their previous career.
5. You Can’t Imagine Not Working
After a
lifetime spent working, many retired persons just don’t know what to do with
themselves without a job. As one of my friends said, “Some people just don’t
know how to not work.” After a lifetime of specific goals, time-sheets, and
to-do lists, the unstructured days of retirement can simply feel boring.
6. Your Savings Aren't Substantial.
Many of us
did not start to save for retirement until we were in our 50’s so we did not
save as much as we need to maintain a lifestyle we are use to living. By
working we can save more money for when we retire full time
7. You May Be Able to Receive Your Pension While Still Working.
Not
everyone’s retirement planning goes perfectly. Medical expenses, unemployment
gaps, etc. are several reasons why people are not able to save enough money to
fully provide for their lifestyle after retirement. When you choose to still
work, whether it be full or part-time, the additional income can help make ends
meet, and allow for a bit more disposable income.
8. Boost Your Social Security Funds
As many of
you know, you could increase the value of your social security payments by
delaying the year that you start taking them. Many people choose to delay their
social security checks for up to 10 years after their retirement begins.
9. Get Health Insurance Benefits
One of the
things that come as a shock for people approaching their retirement is the cost
of medical care. It is easy to take your employer assisted health insurance
payments for granted while you are working, but after your working years are
over, medical care for retired people can be a huge out-of-pocket expense. By
continuing to work after retirement, it is possible to extend those benefits.
10.
Have a Sense of Purpose
Recent
studies have suggested that working longer may benefit your health This might
come to many as a surprise, but having a sense of purpose is an important
aspect of life. Unfortunately, many don't come to realize this until they leave
their jobs, and discover that 18 hours a day of free time is a bit too much.
Although this time can be filled with volunteering, teaching, and other
charitable activities, staying in the workforce is another viable option.
11.
Stay Social
Are you
living in a house all by yourself? Or maybe the people you live with are not
home during the day. Since you have been working for decades, spending the
whole day doing nothing inside the house may come as a bit of a lifestyle
shock. If this is the case, continuing to work post retirement may be worth
your consideration. Humans are social beings, and many environments encourage
just that!
There is no right or wrong answer when it
comes to post retirement work. Spend some time analyzing your personal
situation, and deciding whether full or part-time work retirement is for you.
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