10 most common reasons why people are still working in retirement

Retirement can be a great goal to achieve, but there are reasons why you continue to work after reaching retirement age.

Some of these reasons may be needs, such as covering expenses to supplement Social Security income, or desires, such as remaining active in the community.

As you plan for retirement, here are some of the most common reasons retirees may still be working in their later years, according to the Employee Benefits Research Institute.

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1. Support others financially

When you retire, you may have financial surprises, such as having to pay for a retirement home for your parents or help with college expenses for your children or grandchildren.

This can be stressful and may require you to keep working to cover expenses for which you feel responsible.

A good rule of thumb is to make sure you pay yourself first before paying others. So remember to cover all your retreat costs before worrying about paying for the needs of others.

2. Try a new career

Retirement can be the end of one story, but it’s also the beginning of another story. So you can consider trying that different career you’ve always wanted or turning your side job into your main job.

A new job will put extra money in your wallet when you are no longer in your usual day job.

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3. To maintain insurance or benefits

Employers may give you benefits as part of your employment program, which includes things like health insurance for you and a spouse or family member. or life insurance for you.

You may also want to take a job because you like the specific benefits of the company. Some companies may offer an employee discount for company products or benefits such as gym membership reimbursement.

4. Investments/savings have decreased

You may have a portion of your investments or retirement savings in the stock market, which can fluctuate based on many factors.

These changes could have a negative effect on your savings, which could cause you stress or even force you to return to work in order to replenish your retirement accounts.

Pro tip: Remember to check your portfolio regularly and adjust investments as needed. You should consider switching to less risky investments as you approach retirement or are retired.

5. To make ends meet

Bills don’t go away when you retire, and you’ll still have to pay for day-to-day expenses like utilities, groceries, health insurance, and a mortgage if you have one.

Although you have budgeted for these expenses, changes in the value of your savings may require you to return to work to cover the bills.

Before you retire, estimate your monthly costs for things like your house and other bills to give you a better idea of ​​how much you need to save. Be sure to include an emergency fund, which can help you manage unexpected costs after quitting.

6. New Job Opportunity

You may be happy in retirement, but what if an exciting new opportunity presents itself? Employers who have difficulty finding qualified workers can appreciate your years of experience.

Nothing says you can’t return to work after retirement. There’s nothing wrong with wanting to take on a new challenge after retirement. If you don’t want to work full-time, you may be able to negotiate flexible hours or work part-time.

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7. To avoid taking money from savings

It takes a lot of time and a lot of hard work to save enough money for retirement. And even if you’re happy to retire, you might not want to touch that nest egg just yet.

Continuing to work in a job or as a consultant to generate money can allow you to cover your monthly bills without touching your nest egg.

The IRS doesn’t require the required minimum distributions from your retirement accounts until you’re 70.5, so you can hold onto your investments for as long as you can.

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8. Buy extras

As you slow down your working life, you may want to eat out more often, go to concerts, play golf, or travel more often. All of these activities cost money, however.

Earning a little extra money in retirement can be a great way to eliminate financial stress while allowing you to have more fun.

9. They like to work

Sometimes walking away from a career makes you realize that you still loved doing the job. There’s nothing wrong with wanting to go back to work after you retire because you really enjoy working.

In fact, you may be able to add to your retirement fund so that when you decide it’s time to move on to life after work, you’ll have more money to spend.

10. Stay active and involved

Some people may feel like retirement is isolating them, especially if you don’t have an after-work plan of what to do day-to-day. It may be a good idea to stay involved by continuing to work somewhere after you retire.

It can be a similar position to the one you just left, or you can do something different while contributing to your community.

At the end of the line

Whether by choice or necessity, retirement may not be the end of your working life. You still have the ability to work if you want or need to, even after you hand in your resignation letter.

It may also be a good idea to ask if you can retire early to solidify your after-work plans.

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This article 10 Most Common Reasons People Are Still Working In Retirement originally appeared on FinanceBuzz.

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