For many retirees, to be happy, they need to be financially stable and have a purpose. According to Transamerica Center for Retirement Studies, 97% of retirees with a strong sense of purpose are happy in their retirement. However, it has also been reported that for many Americans, retirement had to be delayed so that they can keep up with the rising cost of living.
It is common for seniors to continue working after retirement to keep a steady income and have a sense of purpose. However, working after retirement may not be the best choice for everyone. Here are some things you can consider before you submit your application for a job.
Reverse Retirement
Reverse retirement is when a person who has already retired gets a part of full-time job. For many, working after retirement helps them enjoy the benefits of retiring but without sacrificing their budget. It also gives retirees a sense of purpose. Some choose to do part-time work, freelance or consulting, or even full-time work in which they try out a new career. For many retirees, a job gives them a sense of purpose as well and it helps them fill any budget gaps they may have.
Is it common to work after retirement?
It is very common to go back to work after retirement. However, this was not always the case. According to the Bureau of Labor Statistics, only 10.8% of those over the age of 65 were part of the workforce in 1985. But between 2014 and 2024, it is expected the number will grow by 55% for 64–74-year-olds and 85% for workers 75 years and older.
Some of these statistics are tied to the COVID-19 pandemic. According to the AARP, during the pandemic, 1.7 million people retired and are now reversing that retirement. This may be due to inflation, or they may not have done proper financial planning when they were younger. For others, they enjoy having a social connection and sense of purpose that they get by working.
Advantages of Working After Retiring
Continuing to work after retirement can result in physical and mental benefits for your health. You ca also build social connections and maintain a sense of purpose. Here are some benefits to consider.
Increasing your income:
With inflation rising, the retirement savings you may have may not last you as long as you had planned. Therefore, if you add a paycheck, that may give you a boost in your budget.
Continue staying sharp:
If you decide to work in retirement, it will help you exercise your brain, whether it is learning new technology or communicating with other people.
You can create a new community:
Sometimes retirees may feel lonely and isolated. You may have friends that are not in the same stage of life as you or family members that are busy with their own careers and lives. If you go back to work, it may help you create a new community and social connections.
Finding your purpose:
Since a paycheck from your job may not be as crucial as it was before retiring, you can focus more on finding your purpose as opposed to working just to pay bills. This may help you find more meaning and satisfaction in retirement.
The Disadvantages of Working After Retirement
When deciding if you would like to go back to work after retirement, make sure to consider the disadvantages that can come with that choice. Even though you may have added income, fulfillment, and a new community, it can also take away from some things in your life. Here are a few disadvantages to consider:
How will it affect your Social Security benefits or pension:
If you decide to have additional income after retirement, this may affect any Social Security benefits you receive. You should always check how it will affect your benefits before you start any job after retirement. You should also check how any life insurance policies you have may affect your Social Security.
You may miss out on hobbies:
Retirement will give you more time to focus on your hobbies and passions. If you decide to work, you may not have as much time to pursue hobbies such as volunteering, gardening etc.
You will have less time to spend with family and friends:
When you work, you have less time to spend with your family and friends. You can have more time with your family if you do part-time or freelance work; however, you may have to miss out on some important family events if you work as opposed to being retired.
Jobs to Consider for Reverse Retirement
There are many jobs that you can do if you decide to reverse your retirement. You can go back to the same industry that you previously had, or you can explore a new career. Here are some common jobs that are considered by retirees:
- Working full-time:
For some retirees, this is a great opportunity to try a new career. You can always work full-time at a non-profit or even contribute to a local magazine. It will give a boost to your income, and it will either help you go back to the type of work you liked or help you try out a new career.
- Working part-time:
For those who would like to work but also take time off to enjoy their retirement, they can do part-time work for many companies, or even a local business they frequently use.
- Working from home:
For some retirees, working from home is a great choice. Whether it is working full-time, part-time, or freelance, it helps them stay in the workforce while also spending time with family. Freelancing and consulting are a great way to make use of their specialized skills that they mastered in the past such as human resources, business development, sales etc.
Consider Your Finances Before Reverse Retirement
Going back to work after retirement may give you satisfaction as a retiree. However, it is important to figure out whether you need that extra paycheck and where your finances stand in general. Here are a few things to look at:
- Money needed to retire:
You need to consider how much money you will need if you decide to retire. This will vary for each person based on their lifestyle before and after retirement, how much salary they were earning, cost of their daily living, debts, and Social Security benefits they’ll collect. Always make sure to talk to a professional financial advisor to get help for your specific situation. If you are about to retire, or have already retired, and you are unsure about your current budget, you may want to consider working again so you can live the lifestyle you like for the rest of your life.
- Social Security affected by working:
You should also consider how working will affect your Social Security benefits. Depending on the number of hours, your work and your earnings will affect how much of these benefits you receive.
- Life insurance:
The type of life insurance you hold can significantly impact your retirement years. For instance, permanent life insurance can help you build cash value, aiding in retirement planning. With whole life insurance, you have the option to use the cash value while you are still alive. This means you may need to consider taking out a life insurance loan or cashing out your policy.
Professional Elder Care
Many seniors enjoy their retirement by spending more time with friends and family, engaging in their favorite hobbies, and experiencing new things. However, going back to work after retirement makes sense for some seniors who miss the camaraderie of colleagues or who need supplemental income. Ultimately the choice to return to work after retirement is up to each individual based on their needs and desires. No matter what you or your senior loved ones choose to do in retirement, Assisting Hands Home Care is available to make lives easier with home care service.
Our caregivers at Assisting Hands Home Care provide a full range of senior home care services for seniors in the comfort of their own home. You can expect high quality care that accommodates the specific needs of your loved ones, and they will be treated with compassion and respect by our highly trained caregivers.
Schedule a free in-home consult today at (224) 258-0736 and learn how we can enhance your loved one’s quality of life.
Daniela has master’s degree in electronic engineering with a pedagogical specialty and master’s degree in marketing management.
After completing her schooling, Daniela worked at a hospital for 6 years as the Director of Business Marketing Development and Public Relations.
Starting Assisting Hands Home Care
Daniela spent more than 14 years as the Assistant Vice President of a national bank before becoming a co-owner of Assisting Hands Home Care of Schaumburg.
Her background in public relations and marketing along with her personal experience caring for her mother motivates Daniela to be passionate about helping families in the Schaumburg, IL area find exceptional caregiving services for their elderly loved ones.
Besides providing home care, Daniela enjoys giving back to the community in her free time, supporting various events at St. Peter Parish in Geneva, IL such as fundraising, school projects, charity events, and more. She also enjoys volunteering for the Humanitarian Service Project in Carol Stream, IL. This organization provides seniors with meals as well as food and supplies for children living in poverty.
