Three Compelling Reasons to Continue Working
Why the Benefits of ‘Retirement Work’ Go Far Beyond a Paycheck
Have you ever wondered why so many retirees continue working in some fashion in their retirement? You may assume it’s the simple financial incentive, but that isn’t necessarily the case.
Many so-called “retirement workers” have learned through experience that there are more benefits to working than earning a paycheck, which is why so many continue to work in part-time positions or dedicate themselves to volunteer efforts. Work, as it turns out, adds more than just monetary value to your retirement years.
Here are three compelling reasons to continue clocking in even if you don’t need to:
Working is good for your health.
There are many benefits to retiring early, but improved health isn’t one of them. In a recent study by the National Bureau of Economic Research, a correlation was found between retirement and decreased physical and mental activity. In turn, the same study linked this decreased activity to higher rates of illness.
Working, even part-time, challenges your mind and body to remain active and engaged. It requires you to do things like thinking creatively, solve problems and interact socially. All of these factors combine to support your overall physical and mental health.
Working offers you a sense of purpose and belonging.
One of the most common struggles retirees face in their transition out of the workplace is, in short, an identity crisis. It’s easy to let our work define us and to give a sense of purpose to our days. A familiar job with familiar people provides us with a feeling of community and belonging, too.
Purpose and belonging are human needs that don’t disappear once you retire from your nine-to-five. Working just a few hours per week, even when you don’t need the money, serves these very real needs and provides some structure to your days. Volunteering regularly offers the same benefits, and may even instill within you an enhanced sense of purpose and impact that you were missing when you had to work to earn a paycheck. In essence, retirement working can be freeing in that it can be all about pursuing your passions and supporting causes that are close to your heart – all without worrying about earning a particular wage.
Working offers important social connections.
Many retirees, especially those who retire early, end up facing unexpected feelings of isolation and disconnection. This is especially true if your friends and close family members are still working, combined with the fact that you’ve lost the familiar social interactions you once took for granted in daily working life.
Working in retirement opens you up to new opportunities for social connection and interaction, possibly with people you never would have crossed paths with otherwise. They could be other retired seniors or younger employees who can benefit from your professional experience and skills. You can continue to put your talents to good use while joining new social circles at the same time.
An Important Reminder
Though there are multiple benefits to continuing to work in retirement, it’s important to remember that it could affect certain aspects of your financial planning, too. This includes taxes and withdrawal rates, but it could impact your retirement planning in other ways, as well.
If you’re thinking about working in retirement, let’s discuss the best plan for your individual needs. Please reach out so that we can begin a conversation on appropriate adjustments that will ensure you’ll continue to live your best life in retirement.
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About the Author
As a Co-Founder, Craig brings years of hands on experience helping clients make informed investment and financial planning decisions. Craig takes great care in understanding his clients near and long term goals and implements an investment strategy around those goals.