Living50+ Blog

The Pros and Cons of Working in Retirement

Written by Living50+ | Nov 04, 2021

Finally, you've reached retirement. It's time to enjoy your savings and live comfortably somewhere for the rest of your life. Unfortunately, for many, the dream isn't quite as they may have imagined it. Perhaps your social circle is shrinking, you find yourself bored during the week, or your bank account appears to be shrinking faster than expected. At this point, you are left with a puzzle. Is going back to work in retirement right for you? To help you out with this, we've compiled several pros and cons of going back to work in retirement for you to consider.

Pros of Working in Retirement

  1. Great Health Insurance

    If Medicare is more than enough for you, this reason may not apply. However, if you are used to the great benefits of private health insurance, finding a job can help. In addition, it's advisable to work in retirement to secure private insurance if you have dependents. Remember, Medicare only caters to your welfare. However, private insurance can allow you to include a dependent in your policy.

  2. Additional Funds

    You might be eyeing a handsome pension when you retire. But, it may not be sufficient for your retirement. Of course, you might have acquired some assets over the years, but are they enough to cover inflation, long-term care, or the rising costs of treatment? Unfortunately, these are some of the factors that can negatively impact your retirement savings.

    And if you don't have enough assets to cover such uncertainties, sourcing additional funds will help you out. In this case, working in retirement will enable you to be financially independent. In addition, it will provide you with additional funds to combat some of the uncertainties. If nothing else, consider using your new income to fund your entertainment, travel, etc., so these expenses don't eat into your long-term savings.

  3. Improve Your Mental Focus

    Staying alert in your retirement years helps with boosting your mental focus. While reading books and solving puzzles can help you with this, working can be more effective. It keeps you engaged all the time and helps you stay mentally focused with a strong memory.

  4. Prevent Boredom

    Working provides a sense of mental stimulation. However, in many cases, having no job and no retirement plans, you are bound to face boredom.

    Luckily, you can fight boredom and re-establish the exciting life you once had by working after retirement. Yes, some people can't wait to retire, but that eagerness doesn't apply to everyone. And if you are one of those with no exciting plans after retirement, finding a new job may do the trick.

  5. Increase Social Interaction

    It's no surprise if your social circle shrinks after retirement. Often, you lose contact with some former colleagues, and those you are still in touch with are too busy. Also, knowing very well that everyone has a unique retirement plan, you may find yourself alone.

    Luckily, you can re-establish the social circle by finding a new job or working for your former employer. This will enable you to build new connections and increase social interaction.

  6. More Options to Explore

    One of the best things about working in retirement is that you are free to explore different opportunities. Unlike before, you now have more options for careers you can take on comfortably. You can decide to stick to the same job with a different employer or try a new field. If you're not dependent on this job for your financial well-being, you can afford to take "risks" in a new field or find work you truly enjoy, even if it pays less than your previous role. What's more, you can choose to work part-time to spare some free time for relaxation. And this is something that would have been impossible before. 

Cons of Working in Retirement

  1. Less Time to Pursue Other Interests

    One of the exciting things about retirement is the freedom to choose your schedule or not have one. However, working in retirement means you will likely lose the freedom to decide your schedule. While it can depend on the type of job you apply for, it's tough to find one where you get to determine your working schedule.

  2. Strain on Relationship

    Going back to work in retirement can create a crisis in your relationship. Often, couples agree to spend years working and look forward to retirement to spend some time together. However, sometimes this isn't how it shakes out. Going back to the job causes unnecessary strain that sometimes leads to divorces. If you're interested in learning more about setting relationship expectations around retirement, check out our post, Great Expectations: Retirement and Committed Relationships!

  3. Unnecessary Stress

    Many people consider work to be their biggest stressor. Do you want to add this stress to your retirement as well? Working in retirement can cause you to experience unnecessary stress that drains you emotionally and physically in retirement.

    So, if you are in this position, don't think twice about quitting. Retirement is meant for relaxation and a laid-back lifestyle, appreciating your hard work in your youthful years. If you choose to work in retirement, consider finding a job that is not going to cause you too much mental or physical stress.

Let us know in the comments below - Have you found a new job in retirement? What do you recommend to others? 

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