Retirement is a period of life many people look forward to for one big reason -- it often means no longer having to work. And let's face it -- it's a nice thing to have complete control over your days, as opposed to having to report to your desk by 9:00 in the morning or risk a remark about tardiness from your overbearing boss.
However, some retirees may be taking the idea of not working in retirement to an extreme. And that attitude may not serve them well emotionally or financially.
Image source: Getty Images.
Retirement doesn't have to mean the end of work
In a recent MassMutual survey, 60% of retirees said they define retirement as "an end to working." But that line of thinking could be hurting a lot of people who stand to benefit from holding down a job.
Motley Fool research finds that in 2022, the median retirement savings balance among Americans aged 64 to 74 was just $200,000. That's clearly better than not having savings at all, but it's also not a particularly large amount over the course of what could be a 20-year period or longer.
In fact, if we apply the classic 4% rule to a retirement savings balance of $200,000, we arrive at just $8,000 of annual income. And while there's generally Social Security on top of that, all told, it's still not a lot of money to live on.
As such, many retirees can most likely benefit from additional income from a job. So, taking the attitude that retirement isn't a time to work could hurt those whose income could use a boost.
But working in retirement doesn't just offer financial benefits. It can also offer emotional benefits.
Many people find retirement to be an isolating period of time. And it's not uncommon for retirees to find themselves bored and restless in the absence of a busy, structured day. Working part-time could very much address those issues and potentially lead to a more fulfilling retirement for those who are open to it.
Plus, some seniors risk falling into physically unhealthy patterns as retirees. The absence of a job could lead to a sedentary lifestyle that medical professionals might frown upon. So, for some people, having to leave the house and go to a job could be a means of preserving their health.
Be open to working in retirement
It's perfectly OK to want to take a break from work once you retire. And there's no saying you can't spend your first couple of post-career years enjoying your downtime and newfound freedom.
But beyond that point, you may want to consider working in some capacity as a retiree if there's a benefit to be gleaned. That benefit may be additional income to pay for leisure activities or home repairs, the chance to socialize with others, or the structure of having a place to be one or two days during the week. So rather than write off the idea of working completely, be open to some sort of job, even if it's a gig role you do sparingly.
