What comes to mind when you hear the word “retirement”? Perhaps you picture spending all of your days with family – playing daily rounds of golf, traveling the world or enjoying an endless stream of beachside cocktails. Ultimately, people equate retirement with relaxing – not with collecting a paycheck.
However, what if in between the leisurely activities you voluntarily chose to work throughout your retirement? There are actually some valid reasons for having a job throughout retirement, regardless of whether it’s part- or fulltime. Here are three:
1. You’ll stay active.
Sure, the idea of 24/7 relaxation and having no responsibilities sounds great in theory, but the reality is that many retirees are used to having a routine, and will get bored soon after retirement.
Having a job is a way to maintain your social structure. We’re not suggesting you have to continue working in the same field, especially if it was a high-stress career. Instead, choose something that allows you to be involved in your community and interact with others. Just because you retire, doesn’t mean your social life needs to as well.
2. You’ll receive a steady cash flow.
People who are about to retire, or have already retired, are very cognizant of their cash flow. If you’re no longer collecting a steady paycheck from a job, where will your money come from? Retirees rely on items such as rental properties, investments, patents, Social Security or any number of things, but the most reliable source of income is a job.
By working throughout retirement, you’ll maintain a steady cash flow. This is especially useful to retirees who are wholly dependent on Social Security, which unfortunately can’t always pay all the bills.
Even if you have cash flow sources outside of Social Security, the income generated by a job can help you pay for luxuries during your time off.
3. You can Influence what you leave behind.
No one wants to leave behind a legacy that includes outstanding debt, especially because your kin will become responsible for it. When you are about to retire or are in retirement, it’s really important to reflect what you’re leaving behind.
If you are entering retirement and still have outstanding debt, one way to whittle it down quickly is to work, especially if you choose a job that intersects with a hobby. You won’t have to worry about the debt going unpaid and will be doing something you enjoy at the same time.
Certainly, the decision to continue working throughout retirement is a very personal one. However, many retirees find it enjoyable due to the social interaction, continued responsibilities and financial advantages.