By the time some people reach retirement age, they're so burned out from their stressful careers that they can't wait to stop working. And there's something to be said for taking an extended break from the grind, especially when you're older.
But at some point during your retirement, you may decide to start working again. And if so, you might be in good company.
Recent data from Nationwide found that 1 in 3 current retirees are considering a return to work. Here are the top three reasons why.
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1. Fear of running out of money
It's natural to worry about depleting your nest egg once you begin to withdraw from your savings. And it really doesn't matter if you have a $400,000 IRA or a $2 million 401(k). No matter how much money is sitting in your retirement account, there is a chance that it will eventually run out. So it's understandable that a fear of running out of savings would be a big driver in a retiree's decision to return to work.
The good thing about earning a paycheck is that even if it's small, every dollar you bring home is a dollar you don't have to tap from your IRA or 401(k). That means you have an opportunity to not just reserve that portion of your savings for later, but also keep it invested so it continues to grow.
2. Boredom
Many people don't realize how challenging retirement can be from a mental health perspective. It's hard to go from working a full-time job to suddenly having loads of free hours on your hands. If you're starting to feel bored and unfulfilled in retirement, a job could be a good thing to pursue -- even if you're well-off financially and don't feel you need the money.
Over time, being bored daily has the potential to impact your mental health -- which could then trickle down to your physical health. If you're able to help stave off boredom with work, it pays to push yourself to find a job.
3. Socialization
Work can serve as a social outlet for many people. If you're getting increasingly lonely by the day as a retiree, then returning to work might help address that issue.
One thing you may want to do is seek out a part-time opportunity at your former place of work. This won't always be possible, but in some cases, it might be, so it's worth a try.
Let's say you're a former teacher. There may be the option to work in your school district as a substitute or lunchtime aide where you work a couple of hours a day instead of a full day.
Or maybe you worked in an accounting firm. Your old employer may be willing to bring you back in as a consultant on a per-project basis. It definitely pays to ask.
Working during retirement has a lot of benefits. Don't hesitate to see what opportunities are available to you if you're feeling concerned about money, bored, or starved for company.
