Early retirement blogs are popular these days selling the dream. It’s the dream of every working person. But what do you do once your retire? You planned to retire. Now what?
There are two types of retirement: early and traditional. We can safely say that once you are in your 50s or older you are taking a traditional retirement. Early retirement is something you do in your 40s and younger.
Many factors play into your retirement decision. Your personal finances may not support retirement so you work longer. Maybe you need health insurance. (An issue affecting only my American readers.) Believe it or not, there are people that love the work they do and found an employer they enjoy working for. Self-employed people often find it hard to give up a business they built from scratch.
There are many reasons to retire; many reasons to keep working. Why do you want to work after retirement? There are 11 reasons below. Each solves a problem people face once they retire.
In each section below I have a link for you to continue your studies. This blog also has an entire category dedicated to early retirement. I suggest you browse the selection and read the items of interest to you. Also consider the link in each category, too. I will share stories from my tax practice that will serve your needs. The additional research I offer is worth the time. Retirement can be awesome! It can also bring problems. Let’s shoot for awesome.
1.) Combat Boredom
A neighbor that lives about two miles from me here in the backwoods of Nowhere, Wisconsin retired a few decades ago. He was excited to leave the daily grind. And he knew he did it right because he had a plan for his retirement.
Since he lives in the country he had plenty of projects. A lot of “stuff”, as he always calls it, to get done. There was also a massive project of planting hundreds of trees on his property.
Every Friday at cards we heard of his progress. And by the end of the first summer he finished all his projects. We heard about that at cards, too.
He expressed surprise at how fast he got all his work done. Of course, if he tried to do all those things while working a job it would have taken years of evenings and weekends. But with all, day every, it did not take nearly as long.
And then he got bored. He didn’t need the money, but he still went back to work. Just differently this time.
Over the past few decades he worked many part-time jobs. He even worked for a tax office. Not mine; a competitors! (Yes, there were gentle jabs.)
Every job he took was seasonal and often part-time. He choose his schedule. And that made all the difference in the world. The worst part of work is the demands and loss of control. When you decide your work schedule your attitude changes. He got to try many new things by having a large number of employers over the years. He met new people and alleviated boredom.
Explore early retirement blogs: Knowadays
2.) Sense of Purpose
In my office I tell my clients I know how to make them look 10 years older or younger within one year.
Of course, clients are interested in what this might be. My reply is short, “To look 10 years younger, pay off your mortgage. To look 10 years older, retire.”
Yes, I get a dead stare. But it is true and I’ve seen it over the past four decades with many clients. When people pay off the mortgage they come in the next year with a bewildered look. They can’t believe how much money they have left at the end of each month. They also report feeling like something is missing in their life. The mortgage companies have convinced people large amounts of debt are a normal part of life. It takes time to shake the ingrained foolishness.
The opposite can be the case for clients that retire. Retirement is not a guaranteed way to look older. If you find something that drives you forward. If there is a reason to get out of bed. To be alive. Then retirement will not make you look older, but younger. However, too many people want away from the demands of their employer so bad they will do anything to get away. But those who plan their retirement years always do better. Like my neighbor above, find what gets you excited and when those thing longer light the fire, improvise.
Remember, working after retirement is not limited to formal work environments. Helping at charities is also an excellent way to bring a sense of purpose to your life when your formal work life ends.
Explore early retirement blogs: AARP
3.) Boost Savings
Early retirement does not give you a lot of time to accumulate financial wealth in amounts that will take you through the rest of your life. Even a full working career does not guarantee you have enough during your retired years.
Working after retirement can fill the financial gaps. Part-time jobs where you control your schedule are the best. Loss of control is like a loss of freedom. People don’t like that. Instead, focus on jobs that satisfy while growing your investment account balance.
Explore early retirement blogs: smartasset
4.) Maintaining Community
Before my dad died earlier this summer he remained active in the community. Growing up on a farm and then spending most of his adult life as a business owner gave him a different approach to life. He still helped out in the business as he was needed. A group of guys gathered at a local restaurant for breakfast several days a week. They, “…solved the problems of the world,” they always said.
There are many ways to maintain community. Church or other charities are excellent venues to pursue. Going back to work can accomplish the same thing. The key, as always, is to retain control of your schedule. Finding yourself forced into a work environment is the perfect recipe to lose desire for the activity. But if you decide when you do and do not work, the job stops being a chore. And you can grow your circle of friends and acquaintances. And feelings of belongingness.
Explore early retirement blogs: AARP
5.) Health Insurance
This is a big one for my American readers. Retirement before Medicare age (65) can put you into a serious budget crisis.
Health insurance gets more expensive as you age. Early retirees often return to work solely for the health insurance benefit. Many early retirement bloggers also do this or their spouse works a job where health benefits are provided. I see a lot of retirees working 32 hour weeks for the health insurance. Some move to another country where medical care costs are less. In any case, Americans have one very big consideration to ponder when planning retirement.
Explore early retirement blogs: Bolden
6.) A Secure Retirement
People are afraid of outliving their savings and investments. This is a real threat as many people attempt to retire younger, coupled with living longer. Those retirement funds have more lifting to do than ever before.
Pensions, for those lucky enough to have one, may not be enough to cover living expenses and travel plans. Some pensions are not indexed for inflation so they do not keep up with the cost of living. As time goes on this can become a serious issue.
Tapping other retirement funds can trigger a tax penalty. You can use Section 72(t) to avoid the penalty, but then you are locked into a plan for an extended period of time.
Often, returning to work after retirement brings in enough money to take the edge off. Your non-retirement investments and savings might be enough as long as a few bills are paid with income from a part-time job.
The earlier you retire the easier it is to work after retirement for a period of time. There are a number of reasons you will not work after retirement. The biggest reason is health. As you age it becomes more difficult to handle the demands of a job.
I want to remind you many non-profits provide non-cash benefits to retired people that help them. Food banks, as an example, may provide some groceries. The work is not demanding and allows for interaction with other volunteers and the public. Volunteering can be fun while providing just enough to make you feel your retirement will remain secure.
Explore early retirement blogs: Second Wind Movement
7.) Covering Essentials Expenses
In #3 above we talked about building savings. In this section we consider something different: essential expenses.
You can build your reserves if your reserves are a bit low for comfort in retirement. Another way to handle retirement finances is to access fewer of those retirement funds.
A part-time or seasonal job can cover some or all of your essential expenses. Utilities, insurance, food, home maintenance, and more are the base amount of money you need to live. Working part-time can cover these essentials. The only amount you take from savings and investments is for additional wants.
The goal is to make your retirement funds stretch as far as possible. Even a small income can keep your investments balance high enough to prevent concerns.
Explore early retirement blogs: Ameriprise
8.) Pursue Your Interests
The reason you wanted to retire was to regain control of your time and pursue things that interest you.
Over the years I have seen many clients take a job after retirement for the sole reason it was interesting to them. They hyper-saved and had plenty of money. What they really wanted was to explore new areas of interest.
I have clients that who have worked on archeology digs. Many worked for Habitat for Humanity so they could learn carpentry skills. The nice thing about retirement is that you can explore many of your interests. Take a part-time or seasonal job in an area of interest. Maybe you need a year or two. Maybe just one season. The opportunities are endless.
The neighbor I opened this post with tried his hand at many things that interested him. He learned more about filing his own taxes by working a seasonal job in a tax office for three seasons. He learned how locks worked by spending a summer working the locks on a river in a town near him.
Learning is the best activity in life. There is so much to experience and enjoy. Try different interests. If it does not light your fires, move on to the next interest. Just be willing to learn and experience.
The opposite is also true. Teaching at a community college is a great way to pay-it-forward. Teaching is also a form of learning. The adage is true: the teacher learns more than the student.
And always have fun.
Explore early retirement blogs: Knowadays
9.) Maximizing Your Social Security Benefits
Early retirees may not have enough earned income to receive a decent Social Security check. Even people bowing out at a traditional retirement age may have many years with low wages or self-employment income.
Visit your local Social Security office to determine the benefits you will receive and what is will take to boost that benefit.
The big issue with Social Security is when you reach an age where any kind of work is not possible. It is then you want to have enough to meet your needs.
Explore early retirement blogs: Debt.com
10.) An Identity
During your working years you know who you are. Other people do as well.
During your working years you might be the plumber, IT guy, tax accountant, or something else. Regardless, you are often identified in part by what you do. Once you retire that identity goes away in whole or in part.
Retirement does not require you to lose your identity! You can also be someone different from who you were during your working years. Of course, you can still find part-time or seasonal work in the same field, if that is what you enjoy. You can also change your identity. You may have been the IT guy during your working years and the guy people must talk to at the garden center after you retire. It feels nice to be the “garden guy” instead if the stressed out IT guy.
I have several identities. I am recognized as a tax accountant, blogger, tax expert, wealth builder, and more. Many of us have multiple identities. You can keep that identity after you retire or mix it up. That is the great thing about retirement. You can explore ideas you couldn’t before.
At the open of this article I spoke of retirement adding 10 years to your age in a single year. Loss of identity, and not finding a new one, is the main culprit. It is vital you find something you enjoy that also gives you an identity. If you don’t know who you are anymore, no one else will either. Be somebody. Somebody that makes you smile and excites you.
Explore early retirement blogs: Due
11.) Exercise Your Brain
The worst thing you can do after retirement is turn off. Sitting in front of the TV all day is not a life.
There is a reason why heavy readers often age slower, suffer less from diseases of dementia, and live longer with a sharp mind.
It is about quality of life. Living more is not better if the quality of the last 10 or so years is nil.
Reading and puzzles can keep your mind sharp. But the best way to keep your mind active is to interact with other people. Part-time work is a perfect fit. You need to think on your feet while solving problems. (That is why employers hire you and why clients or customers come to the shop.)
You provide solutions. This type of thinking grows your mind.
Use or lose it applies to the brain, as well as, muscles. Exercise grows the object of the exercise stronger.
Never let your mind slide. Exercise your brain every day. Challenge yourself mentally. Dementia is the worst of all age related diseases. Read the short novel Flowers for Algernon to see what awaits those who do not exercise their mind. Knowing your mind is slipping, knowing that part of you is dying is the worst way to go. Stay sharp. Stay active. Physically and mentally. Be there 100% to the end.
Explore early retirement blogs: AARP
Final Notes
You will find more than one item on this list relevant. Maybe you need a few extra dollars. Maybe you want to get out and meet people, but don’t care for social venues.
The reason for working after retirement are many. In fact, most people should work after retirement. At least for a while. If you need the extra money then the decision is easier. Regardless, everyone needs human interactions. We are social creatures. There is nothing healthy about decaying in a chair in front of a TV. You didn’t retire for that.
Most of all, have fun. You are retired, of course.