Consider working part time in retirement? That could be a wise decision. Granted, the main point of retirement is to stop working, so the idea of part-time work may not be appealing. However, there are some key benefits to picking up side work after you retire.
Obviously, the extra income is a primary benefit. If you’re like many retirees, you’ll receive income from Social Security and possibly a pension. However, you also may need to take withdrawals from your retirement savings. Those savings may be vulnerable to market volatility, which could impact your income. Part-time work can help you minimize that risk.
However, part-time work brings more than just financial benefits. Work could make you happier, more energetic and more productive in retirement. Best of all, you may be able to work on your own terms. The internet has created opportunities for retirees to freelance, consult, coach and much more on a flexible schedule.
Below are three ways in which you might benefit from part-time work in retirement:
Gradually transition into retirement.
You may be counting down the days until retirement, but the truth is that many retirees find the transition difficult. You immediately shift from a structured routine to a completely empty calendar. You may feel that you don’t have a purpose. The lack of obligation or commitment could lead to boredom.
Boredom can have a very real impact not only on your emotional state, but also on your financial stability. Many retirees address their boredom by spending money. They may go shopping, dine out or travel.
Part-time work can help you ease into retirement gradually. You can work some days and then enjoy other days with a completely open schedule. Also, with work filling some of your schedule, you may be less tempted to combat your boredom with unnecessary spending.
Increased opportunities to socialize.
Work also gives you the opportunity to meet new people. Many seniors complain that although they don’t miss work, they do miss the friendships they developed during their career. In fact, some retired couples face marital difficulty because they spend so much time with each other and not in the company of outside friends. A part-time job can help you maintain a social circle.
Socialization isn’t just important for your happiness. It can also help prevent cognitive diseases such as Alzheimer’s. Some studies have shown that seniors who regularly socialize with others may have less chance of developing such issues.1
Participate in your favorite hobby or pastime.
Finally, part-time work may help you participate in a hobby you enjoy in a cost-effective manner. For example, maybe you enjoy golf. You might be able to get a part-time, seasonal job at a course. You get the benefit of being on the course, and you may also get discounted rounds.
If you have a gift for art, music or some other specialty, you could teach lessons. That would allow you to stay active in your favorite hobby and also earn money while doing so. Be creative and think of ways you can use your skills and knowledge to earn discounts or even generate income.
Ready to develop a retirement income strategy? Let’s talk about it. Contact us today at Grand Canyon Planning Associates. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.