Retirement

Reasons Why People Work

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 4 minute read

Do you see yourself relaxing on a beach, playing golf, or working in your elderly years? Working over the traditional retirement age is a sensible option for many people.

But it doesn’t mean you can’t find time for fun things like vacations and visits with relatives. Instead, returning to work may be a rewarding addition to a full existence. Working after retirement, whether out of choice or need, has several advantages. In reality, you should look at the top retirement career opportunities.

Why Should You Work After Retirement?

Personality-Related Motives to Work

There are numerous benefits to working besides financial ones. In addition to the financial rewards, maintaining a career may give fulfillment and a sense of purpose in one’s life.

  1. Working assists you in maintaining your physical and mental health.

Working not only delays the onset of age-related disorders like dementia, but also helps you feel younger for longer by keeping your mind and body busy. Having a job is a great way to stay connected with others, avoid feeling alone, and get a sense of accomplishment in life.

  1. You enjoy your job or would like to change roles

You may be like many other individuals who keep working because they enjoy what they do. It’s also possible to stay in the same industry while switching to a job that suits you better or works less hours.

  1. You may just want to work part-time rather than full-time.

Having to organize every aspect of your life around your job may be stressful and taxing, especially if you work full time. In contrast, working part-time or in a company with flexible hours can give you the same or even greater benefits than full-time work, while also giving you more freedom and independence.

My mom, for instance, is putting her years of experience teaching middle schoolers to good use by working with film festivals and theater groups to get kids excited about the arts. Thankfully, you won’t have to get up at the ungodly hour of 5 am as you would if you were teaching.

  1. You Want to Try a New Career

After retiring and getting benefits like Social Security or a pension, you may find that you care less about making a lot of money and more about doing what you enjoy. Even if the pay isn’t as good as it was in the past, many retirees retrain for and enter new fields they’re passionate about.

My father, who was formerly OSHA’s vanadium exposure specialist, now works for a local woodworking firm a few hours a day upgrading their computer system and making how-to videos. While it doesn’t pay the bills, he enjoys using his business and IT knowledge in his work.

  1. You Can’t Picture Not Working

Many retirees feel lost and aimless after they no longer have to work. After a lifetime of set objectives, time sheets, and to-do lists, the unstructured days of retirement might just feel boring, as my father put it.

Reasons to Work for Money

Although there are numerous advantages to continuing to work after retirement, not everyone is interested in doing so. Many people who would prefer not to work do so out of need. In reality, the majority of retirees who continue to work do so because they need the money. The most common reasons retirees continue to work are listed below.

  1. Your savings are little.

Retirement savings may be challenging to achieve, and many individuals end up with little money saved at all. Reaching retirement age without sufficient money may necessitate working longer or finding another job.

  1. You Want to Postpone Receiving Social Security Benefits

Up to full retirement age, a person can delay starting to collect Social Security benefits in exchange for a higher monthly payment (either 65 or 67, depending on your date of birth). You may increase the total amount you get from Social Security over the course of your lifetime by working longer and delaying retirement.

In a similar vein, putting off withdrawals from your 401(k) or individual retirement account (IRA) might help your money grow for longer, resulting in a larger nest egg when you finally do decide to use it.

  1. You Need Health Insurance

Since Medicare coverage does not kick in until age 65, if you resign from your prior work before reaching that age, finding a new employment with health benefits can help bridge the coverage gap until Medicare coverage kicks in.

Medicare recipients may still have out-of-pocket medical expenses, such as the price of prescription drugs, even with the government insurance program. Using both your employer’s insurance and Medicare will reduce the amount you pay for medical treatment.

  1. Your investments have depreciated in value.

Many people who rely on their assets to maintain or grow in value might be negatively impacted by the stock market’s volatility. You can be in a tough financial spot if your investments have tanked or your home value has dropped.

  1. You may be able to get your pension while continuing to work.

It is common practice for companies that provide pensions to allow retirees to return to work in some capacity once they have begun earning their pension. If this is the case, you may put away your pension and keep making contributions to your retirement fund, increasing your financial security for when you decide to retire for good.

Bottom Line

Working after retirement can provide financial security, social interaction, and a renewed feeling of purpose. But it’s still a good idea to save for retirement so you won’t have to work if you don’t want to or can’t anymore.

The best time to start saving for retirement is during your early working years because most individuals end up retiring three to four years sooner than expected. And if you don’t, you can have some real money issues.

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