Why Would Anyone Work in Retirement?

You probably picture retirement as a time to stop working, and start relaxing. Maybe you want to travel, or simply enjoy your days without the constraints of alarm clocks and a lengthy commute. But many retirees have chosen to work during retirement, either through a part-time job, joining the gig economy, or starting their own business. Why would anyone do this? There are numerous reasons, but most fall into the following five categories.

Preventing boredom. After retirement, life might slow down considerably. At first this feels like a welcome respite, but before long many retirees find themselves growing bored or even lonely. A part-time job provides purpose and social connections, and can relieve boredom.

Life courses are changing. It used to be that people retired from long careers and enjoyed a few years of retirement. Now, some experts predict that changing lifestyles and medical technology will help many of us feel healthier at 95 than people used to feel at 55*! Many of us will enjoy 20- or 30-year retirements in relative good health. Some might go back to school, change careers, or start home-based businesses after retiring from their first careers.

Retirement funds need to last longer. On a related note, a longer retirement also means you’ll be living on your retirement savings for much longer. Many retirees have found that part time jobs or joining the “gig economy” can help stretch their budgets, without adding too much stress or work.

Fulfilling a lifelong dream. When we’re young, we often set aside our dream careers in favor of ones that allow us to earn a higher income or raise a family. But when you’re retired, your children are grown, and you’re living on some established retirement income, you enjoy the freedom to indulge in those old dreams. Now might be the perfect time to make them a reality.

You need extra income. For some people, working in retirement is more of a necessity. Luckily, there are plenty of ways to earn a part-time income that don’t involve stressful schedules or difficult labor. In fact, 31 percent of people currently participating in the “gig economy” are Baby Boomers**! Of those, 34 percent are retirees who use services like AirBnB or Uber to earn extra income**. Others have gone a more traditional route, and are working part time jobs or offering consulting services related to their former careers.

Working in retirement can be fun and fulfilling. But we don’t want you to do it only because you have to. So, remember to keep regular appointments with us, so that we can help you plan for a stable retirement.

*https://www.cnbc.com/2018/04/10/working-in-retirement-can-pay-off-big.html

**http://research.prudential.com/documents/rp/Gig_Economy_Whitepaper.pdf