10 Reasons Retirees End Up Going Back To Work


As people get older, they tend to look towards retirement as a time in their lives in which they can relax and take it easy. After working for so many years and possibly sacrificing things you may have wanted to do, retirement could be a time to make up for it while you’re still young enough. It could be a time of relaxation and doing the things you may have missed out on. Many retired people, however, do choose to return to work for a variety of reasons. Taking into consideration financial, social, and personal factors; here are 10 reasons retirees end up going back to work.

1) Poor Planning

Since retirement means living a day to day life without a paycheck and with a lot more free time, it requires planning ahead to make sure you will be able to have the retirement experience you want. If you plan to be active in doing many things when you retire, you have to make sure you save enough beforehand. As such, it is beneficial to plan to set aside money as you work to put towards the future. Additionally, you should account for any major changes in your life and how they will impact your retirement plans. For instance, someone who has multiple young children will likely have to develop a different retirement plan than a single person who lives alone and has recently received a promotion. Whatever your circumstances, understanding their roles in your retirement plan is crucial if you want to stay retired.



2) Over Spending

If you do not receive a pension after retiring or if your pension is less than your regular paycheck was, it may be easy to accidently overspend, especially right after retiring. If you spend more money than you receive, you will quickly find your savings depleting. As such, many people return to work so that they can get enough money to live comfortably and to sustain their lifestyle financially. Since people are living longer in present day than in the past, the money they have saved for retirement has to stretch for many more years, and this can lead to a necessary downgrade in indulgence. Working for some extra years can help people build up more money, and will also put them in a position where they are spending more hours earning money and fewer hours spending it.



3) Not Setting a Budget

Budgeting is an important part of financial planning both before and after retirement. If you do not set a budget for yourself while you are still working, you may not be able to set aside enough money to live comfortably after retiring. And budgeting becomes even more important throughout retirement, as income may be lower. Keeping track of how much money you receive will allow you to figure out how much you can spend to make the most out of life without depleting your funds entirely. When you do not set a budget, you cannot see where your biggest expenses are, and therefore will likely have trouble adjusting your spending as your lifestyle shifts. As such, you may end up needing to increase your income to make sure that you are living within your means.



4) Getting Bored

For some people, not having regular obligations can lead to boredom and a sense of loss of purpose. If you are very dedicated to your work, it may play a large role in your life, and not working may leave you with a lot of extra free time, which can make some people feel restless. Boredom has the potential to lead to detrimental habits if the person in question does not know what to do with themselves. Going back to work, even just part-time, can help a retiree reestablish a schedule and fill their time with a productive activity. Additionally, part-time jobs can be ideal because they allow for a good balance between structure and leisure. By allowing for either familiar or new work, returning to a job can keep retirees busy and therefore generally in higher spirits.



5) Needing Health Insurance

A particularly important consideration for older people is having health insurance in case they sustain an injury or ailment which requires medical attention. If you retire before the age of 65, you will not receive Medicare coverage, so you will need to obtain health care another way. Buying individual health insurance can easily be a major expense, especially if you do not have a regular income. For many people, returning to work is thus a viable, and in many cases better, option. Many jobs have insurance benefits in addition to providing a means of earning income. Therefore, someone who is looking to return to work for this purpose should research different companies to find out which ones are the best fit job-wise and offer the best benefits.



6) Delaying Social Security

Social Security benefits are often a very helpful source of income for retirees, averaging over $1,300 per month. However, the longer you delay your receipt of these benefits, the larger the monthly payout will be, such that waiting until 66 or 67 (full retirement age) can cause your benefits to be increased by 30%. As such, unless you have an issue which interferes with your ability to work, it may be in your financial best interest to return to work if you retire on the earlier side. Ultimately, the decision about whether to return to work for this reason relies on many factors, including your health, life expectancy, additional resources for retirement, and your expenses.



7) Wanting to Try a New Job

If you’ve planned well for retirement, you may find that you have enough money to support yourself, but also a lot of free time and the opportunity to try something new that you’ve always been interested in. When people first set off for a career, financial considerations often play a significant role. After you’ve already worked for money, you may realize that there are many jobs out there which pique your interests, even if they would not be feasible options for a primary source of income throughout most of life. There is such a wide variety of options out there, and when you don’t have to worry so much about money, you can focus on taking advantage of the ones which may be most satisfying. Additionally, your interests may change as you age, so adopting to a new line of work can allow you to explore interests which you developed later in life.


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