A big reason so many people look forward to retirement is to be able to stop working. And if you’ve spent the past few decades in a stressful job, you may be eager to bring your career to a close.
But you may not want to write off the idea of holding down a job in retirement. It’s something 75% of workers today say they’re looking to do, according to a recent survey by the Employee Benefit Research Institute. And it’s a move that could pay off in more ways than one.
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The upside of working in retirement
The immediate benefit of working as a retiree is obvious — you’ll have an opportunity to supplement your nest egg withdrawals and Social Security benefits. And if you’re low on savings, the extra money might really help.
The Federal Reserve found that as of 2022, median retirement savings among Americans ages 65 to 74 only came to $200,000. Average savings were higher at about $609,000. But even that larger total isn’t a ton of money over the course of what could be a 30-year retirement. So if you’re able to boost your income with another paycheck, it might help.
But even if money isn’t an issue, there are benefits to having a job beyond the extra cash. Many retirees find themselves getting lonely in the absence of going to work. You might feel similarly if you live alone and don’t have family or a robust social network in town. Going to work for a couple of days a week could give you a reason to get out of the house and enjoy the company of others.
Also remember that work is an inexpensive way to fill your days. Even if money isn’t tight per se, you may want to limit the amount of it that you spend on entertainment.
If you decide to work two days a week, your job could serve the purpose of keeping you busy so that by evening, you may be content to kick back with a good book or watch some TV. All told, that’s a low-cost way to stay occupied.
Finding the right fit is key
You may find that working in retirement benefits you financially and/or socially and mentally. But it’s important to find the right type of job in retirement.
If you’re someone who thrives on structure, then it could pay to take a job with preset hours every week. That could help you anchor your calendar. If you want more flexibility, it could pay to dabble in the gig economy.
Keep your social needs in mind when looking for work, too. If you don’t need the company so much as a paycheck, you can focus on jobs that pay the best. Otherwise, you may want to pursue opportunities that get you talking to people, whether it’s working retail or driving for a ride-hailing service, where you can at least exchange pleasantries with the passengers you shuttle around.
It may be that the majority of workers today are looking to hold down jobs in retirement due to a lack of savings. But even if that’s not a concern for you, it pays to consider working in some capacity for the non-monetary benefits.
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