You’ve planned carefully, had all the important talks with a financial advisor, set aside a nice little nest egg, and now the big day is here. You are ready to retire.
But now that the big day is here you may be having some second questions. This is a totally normal part of the process.
You may even start to think, maybe I don’t need to retire after all.
You are not alone in having these thoughts and questions.
Longevity, combined with insufficient savings, is driving more people to stay on the job longer.
According to Rate.com, actuarial data suggests that a 65-year-old male today in average health, has a 35% chance of living to 90.
For a woman, the odds are 46%.
Benefits of working in or past retirement include mental, physical, social, and financial fitness. And it isn’t like you need to jump back into full-time work straight away, you can work part-time.
Whatever the reason may be, working after retirement can be both individually and financially gratifying.
Here are a few things to consider when preparing for the next chapter of your life.
You’ll have more money
Like most retirees, your retirement will include a big enough nest egg to cover the basics, but now it is time to start thinking beyond the basics.
Your retirement nest egg will also need to deal with inflation, rising medical costs, and long-term care. Working during retirement only means that you are adding to your existing savings.
Think of it as a little extra safety net. Also, if you receive pension benefits, these will typically not be affected unless you are going back to work for your old employer.
You’ll be more social
Social engagement makes a big difference in the lives of seniors, and while many seniors are lucky to have active social lives, it is important to remember that many people extract much of their social interaction through work.
This social engagement also plays a huge role in keeping seniors mentally alert. Besides the social interactions, work naturally keeps you more mentally alert as it involves complex problem-solving.
This increased mental activity can even go as far as to prevent dementia. People who cultivate strong social connections are more likely to live longer into retirement, and more likely to report higher levels of life satisfaction.
As the pandemic has taught us, the loss of everyday social interaction, even small morning acknowledgments, can do a lot in the way of affecting mental health.
This is why it might make sense to think about even a part-time job that would allow you to be around other people. Particularly if your new part-time job isn’t too strenuous, and you aren’t regularly involved in any other outside activities.
Your Social Security payment will grow
Additionally, there are added benefits to Social Security if you delay retirement. If you elect to retire and receive benefits before your full retirement age as defined by the Social Security Administration, your benefits may be reduced by as much as 30%.
Even if you work just part-time, you can delay the start of Social Security benefits. The longer you wait, up until 70, the bigger your monthly Social Security check will be.