5 Reasons to Continue Working after Retirement
Ensuring that your retirement savings will last throughout your retirement can be stressful. This brings many pre-retirees to ask an important question: "Should I continue to work after retirement?" We asked some of our users about the reasons why they are interested in continuing to work post retirement. Here are their top five answers:
Have an Extra Cushion
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.
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. Check out this great article from Charles Schwab about when you should start taking Social Security.
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.
Have a Sense of Purpose
Recent studies have suggested that working longer may benefit your health (Check out this article from the New York Times.) 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.
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 working 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.