“Many retirees choose to take up a side gig or start a new full-time career after retiring. Some of the reasons for doing so might surprise you.” — Lawrence Castillo
While economic necessity is a not insignificant driver in the trend of seniors working in retirement, there are other reasons for doing so, which may not be as apparent. If you are someone who is already in retirement or about to retire, should you consider starting a business, new career, or taking up a “side hustle?” What are some of the benefits of working even though you may no longer have to? Are there intangible emotional and psychological benefits of work that you can’t get any other way? Let’s look at a few economic and non-economic reasons that pre-retirees and retirees decide to return to the workplace.
Help with delaying Social Security payouts
Most people are aware that delaying Social Security benefits will generally result in larger monthly distributions. Starting payments before your full retirement age could potentially reduce benefits by up to 30 percent. Having extra money available through a job or side gig can help you delay Social Security payouts for as long as you can. Getting more out of Social Security is one reason that seniors choose to work full or part-time during their retirement years.
Keeping the bloom on the rose
When you are still slogging to the office every day, irritating your ulcers with lousy coffee, annoying bosses, and mundane, sometimes pointless tasks, it’s easy to fantasize about what life will look like once you no longer punch the clock. Those fantasies tend to fade pretty quickly once work stops, though.
One-out-of-four Americans will live past age 90
There’s a chance you’ll run out of meaningful things to do at some point. Working, especially at a job that is unlike your previous career, can give you a renewed sense of purpose and motivation.
Reduce anxiety through financial stability
Even if you managed to save and invest enough to cover your necessary expenses in retirement, unexpected costs are always lurking in the background, ready to sucker punch at your most vulnerable. Some seniors continue to work to shore up their retirement plans or pursue alternative investments and cash-producing assets.
Enhancing medical benefits
If you retire before you are eligible for Medicare, you might be in for a shock when it comes to healthcare costs. Even if you qualify for Medicare, you might discover that out-of-pocket expenses are more significant than you ever anticipated. Working a job that provides health benefits or supplemental insurance can help you fill in some of the gaps in your Medicare coverage.
They are helping loved ones
Some seniors return to the workforce to assist struggling family members, help with grandkids’ college expenses, or inject cash into family businesses. In some cases, seniors may return to work because they gain custody of a grandchild or have an adult child with disabilities.
Senior workers are investing in their emotional and physical wellbeing. Many people define themselves in terms of their professions. Losing the sense of identity tied to one’s career is a reason that seniors can find themselves moody, depressed, and unmotivated. They may become disengaged from life to the extent that they suffer a more rapid cognitive and physical decline. Starting a post-retirement career has demonstrated emotional, physical, and mental health benefits. Some experts have suggested that working even one year after retirement can lower the risk of dying.
Putting it into perspective
Working into retirement, starting a new business, or developing a successful “side hustle” benefits seniors in several tangible and intangible ways. Not only does the extra money earned increase financial stability but working can improve physical and emotional wellbeing and provide a sense of purpose and usefulness.
(Lawrence Castillo is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management. L and C Retirement Income Planners, 4801 Lang St. NE Suite 100 Albuquerque NM 87109 505 798- 2592 http://lawrencecastillo.retirevillage.com/)