5 Compelling Reasons to Consider Working in Retirement

In the past, retirement has been portrayed as an ending, a grand exit from your years in the workplace. But the rules are shifting. Labor force participation among those aged 65-74 is predicted to reach 32 percent by 2022, up from just 20 percent in 2002.¹ As the Baby Boomer generation ages, more people are viewing retirement as an opportunity to enjoy the rewards of work in a whole new way. If you’re considering working in retirement, here are a few reasons why it could be beneficial.

Reason #1: Improve Your Mental Health

Doing things like learning a new skill can help maintain mental agility. Working, especially in a new job, is a great way to continue learning and improving your skill set. Staying engaged in work helps to build your “mental muscle.” This is an effective way to reduce the risk of developing dementia or Alzheimer's as well as ward off signs of aging.

Reason #2: Maintain Physical Health

Staying active during retirement years is crucial for continued health. Whether you choose to work full time or volunteer a few days a week, engaging in some form of work will keep your body moving. This can give you opportunities to stay balanced, strong and healthy.

Reason #3: Continued Income & Delayed SS Benefits

The longer you work, the longer you receive a steady paycheck. This, of course, can help boost financial stability and grow your savings. But in addition, working during retirement may afford you the ability to delay receiving Social Security benefits.

Social Security benefits become accessible at age 62, but full retirement benefits will only be available once an individual reaches their full retirement age, which is determined by their birth date. Any benefits received before reaching your full retirement age are reduced by a percentage, also determined by birth date, ranging between 25 and 30 percent.²   

Depending on your circumstances, working into retirement may mean being able to delay benefits until your full retirement age. If you want to maximize your benefits, you can receive a retirement credit up until the age of 70. This bonus percentage is determined by how long beyond your full retirement age you wait to begin receiving benefits.

Reason #4: Sense of Purpose

Studies have shown that a sense of purpose has been found to lengthen lifespan and quality of life.³ Working on something you care about, starting a new business or mentoring others in the workplace can ward off depression and provide a healthy sense of fulfillment and direction in your later years.

Reason #5: Avoid Isolation

One of the risks associated with retirement is increased isolation, which in terms of its impact on your health, has been equated with smoking nearly a pack of cigarettes a day.⁴ Working with others reduces this risk, giving you a chance to build connections and enjoy meaningful interactions.

There are plenty of considerations to make before rejoining the workforce in retirement. When deciding if this is the right move for you, keep these important benefits in mind.

Evergreen Financial Group is a Fee-Only Financial Planning and Investment Firm located in Billings, MT serving clients in Montana, Wyoming and virtually across the country. Evergreen Financial Group specializes in working with Christian families, including young professionals, Current and Future Retirees and Church Staff Members.

Spiritual Application

At whatever career stage you are in at the moment, the idea of working can bring on a multitude of emotions. Maybe you have been working all your life, or maybe your career is just starting. In whichever case, work can take on a variety of forms for you and your situation. For many of us, work is an enjoyable venture, with great coworkers, work environment, or maybe working as your own boss. For others, work seems like an act of drudgery and the end of the day can't come soon enough. 

When we evaluate our overall level of enjoyment with our work, it's important to look at how we actually measure how we feel about it. So many times, it's easy to get caught up in what we don't like and how much better we could have it. However, the Bible gives us some instructions on how we are to look at it. Colossians 3:22-24(NLT) says, "Work willingly at whatever you do, as though you were working for the Lord rather than for people.  Remember that the Lord will give you an inheritance as your reward, and that the Master you are serving is Christ." Two key words I'd like to point out in this passage are willingly and serving. Did your mindset about work change when you focused on those two words? Working willingly. Working through serving. For me, this completely changes the way I need to think about things. Not only should my goal be to work for the Lord, but I also need to do it willingly and from a servant's heart. 

Does this mean I need to give up all of my own rights and become a slave with no pay? Absolutely not. What it does mean is that if we inwardly change our thoughts, our outward attitudes and actions will then change. Maybe it's not necessarily the paycheck that is the goal, but the ability to work for others through volunteering, helping a neighbor, mentoring a young adult, or visiting an elderly friend. Is it possible that we then become people who work and are also satisfied, fulfilled, and giving towards others? I think so.