The impression people get when they hear the word “retirement” has something to do with not working any longer. They’d probably go on a long vacation, making the most of the fruits of their retirement funds. However, not everyone thinks along those lines. Many still opt to work even after retirement, for various reasons.
Why do some people still continue working after retirement? One common reason involves financial obligations and commitments. Perhaps their retirement funds aren’t enough to cover any loans they have incurred in the past, say, an outstanding mortgage or student loans, and they still have to pay the rest. Some still have family members to support or kids to put through school. Maybe their savings aren’t sufficient, and they want to build up their post-retirement funds.
Some people also want to continue working for self-fulfillment and because they still savor the challenge. Sometimes, it is already ingrained in one’s personality to keep working, and after retirement, they tend to feel useless and depressed when they’re no longer working. There are even people who look at work as a way to stay healthy and active. They cannot imagine NOT working, and do not want boredom to set in.
Whatever the reasons are for continuing some form of work life after retirement, there are a few things to keep in mind.
- Choose between working part-time and working full-time. Your decision would depend greatly on your mental and physical health, if you can keep up with the demands of a full-time job, or you’d prefer to do it part time instead
- Choose a job that can balance your work with leisure and family time (and much needed rest as well). There is no point in living only slogging day and night even post retirement
- While on the job, look at your take-home pay (net of taxes) instead of the gross amounts. Keep in mind that, depending on your taxing profile, the supplemental security income or social security benefits that you receive (or even a part of it) are also subject to taxes. Budget according to the after-tax income instead of the before-tax income.
- If you retired early and you’re considering going back to work before reaching the full retirement age as mandated by law, weigh the consequences on your Social Security benefits. That’s because the Social Security Administration will deduct $1 from your benefit payments for every $2 that you earn more than the annual limit. Your decision would depend on how much you depend on your social security benefits for your expenses
- As much as possible, find out if you are working in a job that pays medical benefits. Remember that, retiring before reaching the age of 65 means you won’t qualify for Medicare, at least until you reach that age. If your job doesn’t provide you with health care coverage, you’re pretty much on your own.
- Try to find retirement jobs that is already matching your work-related or technical skills. If the new job demands further training which is not taken care of by your employer, that already means spending more from your pocket to secure that kind of a job
- Unless you have a great ambition or unfulfilled dream clubbed with a lot of energy, try to move sideways than looking at the next big responsible role in your retirement job
There’s nothing wrong with working after retirement. Before you do so, however, you must first put a lot of thought into it, look into your options and weigh them. Just because you’re already retired doesn’t mean you’re done with planning for the future.