By Erin Hunter
Retirement can have multiple different meanings. For some, it can mean kissing the workforce goodbye forever, taking a long year vacation, or going from working full-time to part-time. Although punching out for the last time at age 62 sounds great, many seniors have found various reasons to continue working in their golden years. If you aren’t sure if working part-time sounds right for you, here are five reasons to consider a part-time job in retirement.
- Make additional income
Before you even think about retirement, you should have a substantial amount of money in your savings account. Many financial experts recommend having about 15% of your annual salary in savings going into retirement. But emergencies do happen, and you might have to dip into your retirement savings. In that case, having a part-time job in retirement can be beneficial, so you can make additional income to add back to your savings.
A 2019 research study by Northwestern Mutual found that 22% of adults have less than $5,000 saved for retirement, and 15% had no retirement savings at all. If you find yourself in this situation, you can continue working part-time in retirement to help pay for necessities.
- Healthcare costs
There aren’t many people who prepare senior citizens on how much healthcare costs in retirement. Many seniors believe coming into retirement, Medicare, federal health insurance, is free since they have paid Medicare taxes throughout their careers. This is, unfortunately, false.
However, if you worked 40 quarters in the U.S. and paid payroll taxes, you would have a premium-free Part A. But, if you only worked 30-39 quarters, you would pay $259 per month for Part A in 2021. If you have less than 30 quarters, your monthly premium would be $471 in 2021. Part A also has a deductible, which in 2021 is $1,484.
No matter your work history, you will pay a monthly Part B premium. In 2021, the standard Part B premium is $148.50 per month. But, if you make a higher income, you will pay more for Medicare Part B. The annual 2021 Part B premium is $203.
As you can tell, Medicare is certainly not free. Working a part-time job in retirement can help offset your Medicare premiums, as well as your healthcare costs.
- Remain social
Whenever you retire, you might not get the same social interaction you had when working. Leaving a job means giving up that social environment. Although you may not like working, you still need to stay connected with family and friends. Whenever you pick up a part-time job, you will have new co-workers you can still chat with regularly.
Seniors often fall into depression when they are isolated at home during retirement. When you are surrounded by employees, customers, and suppliers, you will get to meet new people and connect with them on another level than you would get being at home.
- Stay moving
Naturally, when you grow older, your health can begin to decline. A study in 2015 published in the CDC journal Preventing Chronic Disease suggested that those who worked past age 65 were three times more likely to report being in good health than those who retired. Therefore, working past 65 can actually be good for you!
Whenever you retire, you may find yourself lounging around more than you are moving and up on your feet. A part-time job in retirement will not only benefit your pockets but can also benefit your overall health. You can look for part-time positions that have you up and moving around, such as waiting tables or mail delivery.
- Challenge yourself
Being in the workforce provides many challenges, whether that is just getting out of bed in the morning or being assigned a big project. Whenever you retire, you likely won’t incur many daily challenges. Although sleeping in and relaxing sounds nice, you might eventually crave those everyday tasks.
As a senior citizen, you want to keep challenging yourself. Seniors are more susceptible to a cognitive decline as they grow older. Just like your muscles, you want to keep using them, or they will become weak over time; this also applies to your brain. Working a part-time job in retirement can be the brain stimulation you need without your time being consumed by work.
Final point
Working in retirement might not sound ideal at first, but these five reasons to consider working a part-time job in retirement can hopefully give you some insight into why your lifestyle and body might need it.
