Retirement does not necessarily mean that you have to completely stop working. Recently, there has been a trend in the U.S in which a lot of seniors who already retired, choose to continue working, because they really love what they do or they want to have an extra income. If you are thinking about working as a retiree, in this article you will find some advice about it so you can decide if it is actually for you.
Try phased retirement
In case you don’t want to stop working immediately, but you do want to be work-free in the future, phased retirement may be an option for you.
Being a person who has worked in a company for years, means that you have a lot of experience and knowledge. A lot of employers often do not want to lose employees with these characteristics, because it usually means replacing you with someone not as experienced as you.
Some companies prefer to offer “phased retirement” and even though it is not an option everywhere, more employers are adding this option for their senior workers. Phased retirement means that you will gradually leave your work by having to work less. This may be through fewer work hours, less work days per week, longer vacations and/or fewer responsibilities. You can also become the mentor of a new employer while working, so they are ready to take your place once you leave.
Talk to your boss and ask him if there is a way in which you could do this. This way, you will still contribute to your future Social Security benefits, you will keep saving money for retirement and you will have less workload at the same time.
Consider the pros and cons
After you retire, you may be able to find another full-time or part-time job, but consider pros and cons before you make your decision.
Of course, you will have an extra income and you will not depend entirely on Social Security or pensions. You also keep yourself active, as you will still have a routine, you will socialize at work, meet new people and feel like you have a purpose.
However, take into consideration that working also comes with some expenses and you will have to pay for income taxes. Make a budget after taxes and consider expenses like transportation, clothing and meals. This way you will see if it is worth getting that new job.
Be extremely careful if you are considering working as a retiree before your full retirement age. Remember you will have to completely pay for your health care costs and finding a new job with a good health insurance or program can be difficult.
Also, many pension plans calculate what you will receive in the future based on your salary while you were working, so if you decide to trade the position you have nowadays with a part-time job that pays you less, you will affect the amount of money you will receive for your pension.
If money is not your main concern, try volunteering!
Giving back to society is often a reason why a lot of seniors keep working as retirees. You can work in your community or volunteer for a social project that helps people that need it.
This way, you may not receive a lot of money or any money at all, but you will feel satisfied with what you are doing, you will meet a lot of new people and you will have a good reason to get out of your house.