Working After Retirement

The retirement phase of life can take on different forms, bringing new experiences and new ways of living. Before you retire, you might want to ask yourself what this phase of life means to you. For some retirees, it may mean a life full of relaxation or family time, but others struggle with idleness or may require additional cash flow in retirement. If you think you fit in the latter, it may make sense to work part time or even full time in retirement.

What Retirement Means to You

Do you want to spend more time on the beach? Or would you rather devote your days to reading books or working on that creative project you didn’t have time for during your prime earning years? Maybe retirement is about being with family or nurturing deeper relationships with your children or grandchildren. But if you get to these years and need to continue generating income or would like to have more structure and purpose in retirement, it’s not at all uncommon to consider working after retirement in some capacity. If you choose to work after retirement, consider all options that can make your post-retirement work experience enjoyable and supportive of your lifestyle.

Benefits of Employment During Retirement

While working after retirement might be a choice for some retirees, for others retirees it might be a necessity. Your retirement benefits such as social security or pensions might not provide enough income, and you might need to supplement your retirement benefits with an additional source of earning.

Here are some of the common reasons some retirees end up working after they retire:

• You simply enjoy working. If you are working toward certain goals or projects, seeing them to fruition may be personally satisfying.
• You may need extra cash flow. If your retirement income (e.g., Social Security, pension, etc.) isn’t enough, or if you need an extra boost of cash, working part-time for an employer might allow you to cover expenses or purchase additional items.
• You may own a business. If you own a business, you may not want to let it go completely. Perhaps you enjoy your self-employed status, the invigorating work or the supplemental source of income.

Finding a Job or Second Career after Retirement

If financial necessity requires you to find a post-retirement career, you may need to consider various factors in relation to your goal. Do you plan to work for an employer or run your own business? Working for an employer may or may not provide you with the ideal accommodations you seek as compared with running your own business. You also have to consider the implications of working for an employer on a full-time or part-time basis. Also take into account the following details:

• Pay. Are you looking to receive a specific amount per calendar year, or might you need to earn consistent cash flow? Depending on your needs and situation, you may be willing to work for less compensation if the work you are doing is more flexible or enjoyable. If you need to earn more money to cover retirement expenses, then your rate of pay is likely to be more important to your decision.
• Physical demand. As you age, you may be less able to perform labor-intensive jobs. Take this into account when searching for a job.
• Proximity to home or family. Do you plan on walking or driving to work? How far are you willing to commute? This important factor impacts the amount of time you can spend with family or on your other priorities.
• Family business. Are you the entrepreneurial type who already runs a business? If so, how often do you plan to go into the office? Can you do some of your tasks from home? Think of how you can make your work match your retirement lifestyle.

Working after Retirement: Not Necessarily a Negative

Longer-term retirement assets and income take many forms: equity investments, social security, pension, annuities and so forth. If you combine these resources and still fall short, working after you retire may be a necessity. Sometimes it is more of a lifestyle choice, though. You may want to continue working after you retire because you enjoy it or you want to increase your earnings to fulfill a personal financial goal.

Aside from the income it may bring, a second career during retirement may come with additional perks: new people to connect with, a sense of fulfillment and a something to keep your mind sharp and active. It may keep you from becoming socially isolated, providing you with a wider base of people with whom to share stories and life experiences, as well as mental stimulation.

If you are considering integrating work into your retirement lifestyle, make sure it aligns with your needs and goals. You may be able to be more picky about location, flexibility and the nature of the job itself. If you plan on working in retirement and would like the help of a dedicated investment adviser to manage your retirement savings, Fisher Investments may be able to help. To learn more, call and speak with one of our qualified representatives today.