The Good And Bad Of Working In Retirement

Schedule your consultation with a CERTIFIED FINANCIAL PLANNER™

The Good And Bad Of Working In Retirement

by | Jul 17, 2019

While most people cannot wait to retire, when the time comes it’s not unusual for people to go back to work. Whether they need money to supplement their income or more structure, stimulation, or socialization, some people find fulfillment in returning to work.
There are good and bad things about working during retirement and a lot of things to consider when making the decision. 

Good Things about Working in Retirement
There are a lot of reasons why people are drawn back to work after retirement and it isn’t always about the money, though that is a perk.

Extra Money
While it’s certainly not the only benefit of returning to work, earning extra money is definitely worth considering. Some people may need the extra income to supplement their retirement funds while others may be looking for a way to earn money for travel, entertainment, or to treat their grandchildren. People may also continue to work to take advantage of insurance plans offered by their employer.

Work provides a lot of opportunities for social interaction. Some people find that they prefer more structure and miss the satisfaction of a job well done. It’s easy to get bored in retirement. Going to work, meeting other people, and interacting with customers is a great way to stay busy and doing something of value.

Mental Stimulation
It’s always good to learn something new and to keep up with changes that are happening in your industry. Maintaining mental sharpness and getting intellectual stimulation is another great reason to work past retirement age.

Working in retirement isn’t the same as working full time. Many people in their 60’s who return to work are scheduled part-time hours. Some don’t fully retire from their career; instead, they cut back their hours and take a pay cut. Someone who worked in management may step down and do part-time work elsewhere in the company. Others may start a new career altogether. 

Bad Things about Working in Retirement
Work can be challenging at any age but particularly when you are past retirement age. There are a lot of things that can make things a little bit complicated. 

Retirement income, like most income, it subject to income tax. For people who are getting Social Security benefits or taking disbursements from a 401(k) or retirement plan, any extra earnings may push income into a higher tax bracket making Social Security income taxable. This can result in a pretty hefty tax bill.

Having a Boss
After a lifetime of work, the last thing anyone wants is added stress in what is supposed to be a time to relax and enjoy life. For people who spent their lives working for a demanding boss at a stressful job, retiring can bring a lot of relief. Stress can disappear, aches and pains may go away, and life is generally good. Returning to work can add unnecessary stress.  

Less Time
One of the great things about retirement is there’s finally time to pursue life your own way. If you’re healthy enough at retirement age, you may want to travel, go on adventures, or pick up a new hobby. Other people just want to make memories with their families and spend time with grandchildren. Working and having to follow someone else’s schedule can take up a lot of free time, leaving fewer hours in the day to do what you love.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Thomas B. Fleishel and not necessarily those of Raymond James.


Ways To Contact Us

Schedule your consultation with a CERTIFIED FINANCIAL PLANNER™