If you’re close to retirement, you may be faced with the same dilemma. Do you keep working to maintain your same lifestyle, contribute to your retirement savings and keep your mind sharp? Or do you retire for good and spend time doing the things you always wanted?
Why More Americans Plan on Working During Retirement
The definition of retirement continues to change. At one time, retirement was about working until a certain age and then switching to no work. But today, people are faced with economic uncertainties from the pandemic, high inflation costs, an unpredictable stock market and high unemployment rates. With so many unknowns, many Americans feel that it’s safest to include some type of work in their future.
Furthermore, working in retirement offers mental benefits. In the same Voya Financial study, 56 percent of respondents said they wanted to continue working because it was good for their mental well-being. The American Psychological Association (APA) also states that delaying retirement or working in retirement can stave off cognitive decline.
A study from the University of Florida found that employed retirees report levels of health, well-being and life satisfaction on par with those who have not yet retired, despite significant differences in age. Not to mention, having an additional financial safety net is another boost for the mood. People can live better and do more in terms of traveling, home improvement, medical care and entertainment.
Should Your Retirement Plan Include a Job?
Whether or not your retirement plan should include some type of work is a highly personal decision. People who work in retirement often remain more active and socially connected, with better overall health and fewer medical issues. So, if you enjoy working and want to keep yourself busy, having a job might be best. And of course, it provides the practical benefit of more retirement savings.
On the other hand, you might very well be tired from working and ready to live your life the way you want. For the first time in decades, you can finally enjoy life without being tied to long working hours. Plus, if your job was known for stressing you out, you can eliminate this stress from your life and perhaps improve your mental and physical health even more than if you were to work!
In the end, many people end up working a part-time job to get the benefits of both worlds - shorter working hours but the social and mental benefits of employment. To discuss your retirement plan and which direction you want to move in, schedule a consultation with Leonard Financial Solutions today.