Inflation has been surging for well over a year now. And while it’s putting a strain on consumers across the board, retirees may be bearing the brunt of it.
Many retirees are limited to a fixed income that consists largely of Social Security benefits. And even those with a decent amount of retirement savings may be running through their cash reserves too quickly for comfort these days due to higher living costs across the board.
It’s not surprising, then, to read that a pretty large number of current retirees are considering reentering the labor force. A recent Paycheck survey found that one out of every six retirees today is thinking about going back to work. And 53% are considering going back to work because they need more money. If you’re in a similar boat, a return to work could be a smart move for you.
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A good way to alleviate financial stress
It’s common for near-retirees to set a budget before wrapping up their careers that estimates their monthly costs. You may have done so a few years back, before inflation started soaring. But if you’re spending far more money now than you anticipated you would as a retiree and you don’t like the way your nest egg is dwindling, you may want to consider returning to a job.
Granted, it doesn’t have to be a full-time job. You may find working part-time gives you the income boost you need without committing you to a stressful schedule. But if money has gotten tight, it could pay to seriously consider some type of job — especially since rampant inflation could be with us for quite some time.
It’s not just about the money
If you have financial concerns, returning to work could help alleviate many of them. But snagging a paycheck isn’t the only reason to consider rejoining the labor force.
In the aforementioned survey, 52% of respondents cited getting bored as a reason for going back to work. And 43% cited being lonely.
When we’re deep in the throes of a job, it can be easy to overlook the social and mental health benefits of having one. But in reality, many retirees come to miss working because it gives them structure, a social outlet, and the chance to keep their minds active. Therefore, if you’ve been having a difficult time adjusting to retirement, you may want to consider getting a job — even if you have a giant nest egg and money isn’t particularly tight.
To be clear, needing money may be the strongest motivator of all when it comes to going back to work as a retiree. But if you’re someone who’s always enjoyed working, you may want to stick with it.
That said, there’s no reason to limit yourself to your former profession if there’s something new you’ve always wanted to try. Retirement is a great time to start a small business or find ways to monetize a favorite hobby. And you shouldn’t hesitate to do those things for the many benefits involved.
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