Before we begin talking about why baby boomers want to work in retirement, let’s look at a few statistics. According to a survey conducted by Charles Schwab, 82% of baby boomers expect their saved amount will allow them to fulfill their retirement plans. However, nearly 20% don’t have those exact expectations, so they want to work in retirement.
Why Many Older Americans Are Not Prepared For Retirement
While a large number of Baby Boomers are retiring, many aren’t financially prepared. This isn’t something that can be attributed to merely poor retirement planning. The most significant reason is due to the financial crisis of 2008 and the persistently low interest rates. So, they feel working in retirement is necessary.
As I stated earlier, there are many reasons that baby boomers want to work in retirement beyond it being “for the money.” So, other than the financial reward of being employed, what are the other benefits of having a job during retirement?
5 Benefits of Working in Retirement
- Maintains Our Regular Rhythm
Sure, the added income provides some financial security, but continuing to work after retirement gives us the structure we’ve become so accustomed to. That structure helps us to plan our days, weekends, and vacations.
2. Tests and Expands Our Abilities
Staying on the job after retirement pushes us out of our comfort zone and provides new learning opportunities. We have to expand our knowledge, discover newer methods, and keep up with the latest technologies.
3. Establishes Our Personal Identity
Like it or not, our identity is tied to who we are and what we do for a living. I often talk to retirees who feel as though they’ve lost their identity after retiring. Working after retirement continues to help us maintain our individuality and uniqueness.
4. Gives Us A Feeling Of Belonging
Retirement can leave you feeling isolated and alone. Working past your retirement date allows you to remain connected. Every company has its own culture, personality, and jargon. It’s part of what makes us feel connected to something bigger than ourselves, working on projects together and enjoying the camaraderie of our fellow employees.
5. Expands Our Personal Development
Often, Boomers want to work in retirement because it allows them to continue growing as individuals and contributing to the world around them. Since many jobs offer courses so employees can continue learning, taking advantage of these allows us to give back to the community around us.
Retirement Blues
For many boomers, taking retirement produces uncertainty, instability, and anxiety. While it may sound fantastic to “do what you want with your day,” the fact is, that weeks and months without organization and structure can be disorienting. Not only can you feel that you’ve lost your identity and purpose, but you feel as though you’ve lost your sense of belonging, too. Plus, you’re not being challenged to grow and excel any longer, and depression can soon set in. Suddenly, you begin feeling like just another retiree!
Once you’ve retired, you’ll have to learn how to deal with a “retirement” lifestyle and culture. Most of us aren’t prepared for that kind of change and want to continue to work in retirement years.
For many Baby Boomers, the only way to maintain balance and structure is to remain in the workforce. After all, why not? There’s a possibility that you’ve got another 20-25 good years left before you decide to stop working.
Work In Retirement Options
Work For Previous Employer “Under Contract”
Many Boomers don’t want to forfeit all the benefits I’ve mentioned. They continue working a job that they’re familiar with.
So, they might look into coming back to work part-time, get an extension, or work “under contract” for a certain period. This can often be a great option since there’s no learning curve and you’re already familiar with the environment and culture.
Become an Entrepreneur
For many like myself, the job was no longer challenging, you’ve capped out your income, and there’s no chance for advancement.
So, you might decide to become an entrepreneur, do what you love, and work for yourself. You can do this by repurposing your existing skills and rebranding yourself for an entirely different type of post-retirement career.
Be a Volunteer or Mentor
Now, you might be one of those who isn’t really concerned about your finances. So, you might want to become a volunteer or a mentor. At the end of a long career, you have a lifetime of practical advice and direction to offer younger generations. At this phase in your life, you might feel that you’d like to positively impact future generations.
Working In Retirement Gives Purpose To Life
It’s no secret that we’re living longer than previous generations, especially if we’ve had a relatively healthy lifestyle. According to my family history, there’s a possibility that I can remain active into my 90s. Personally, I don’t want to waste a moment I have left. I want my remaining years to be filled with meaning and purpose. That’s why I’ll work as long as I remain healthy.
Do you plan on continuing to work in retirement? Are you retired and still working? If so, what are your reasons? Please take the time to share your thoughts with our community!
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