57% of workers plan to have a job when they retire. Here’s why you should too
It’s easy to think of retirement as a time in life when work is off the table. But nowadays, more and more workers are considering some type of job after their primary careers are over.
If you don’t plan on having a job in retirement, you might want to rethink this plan. Here’s why.
1. Your savings might need a boost
Transamerica reports that the median retirement savings balance of all workers today is $ 93,000. To be clear, it’s not a small amount of money for working people in their twenties, and it’s not bad for those in their thirties.
But if you’re in your 50s with just $ 93,000 in retirement savings, you may not be making much of your nest egg later in life. Having a job is a good way to make up for a lower balance than you’d like it to be.
Plus, making money could keep your nest egg untapped for longer. And that could, in turn, give your money a little more time to grow.
2. Social security could be cut
Some workers are now worried that Social Security will run out of money by the time they retire. The good news is that this is unlikely to happen. The bad news is that the program may have to cut benefits in the not-so-distant future if lawmakers don’t find a way to help it raise more revenue.
Since benefit cuts are a very real possibility right now, it’s a good idea to plan to work to some extent after you retire. Income from this job might help make up for the fact that your Social Security earnings are not as strong as you might expect.
3. You might need an inexpensive way to keep busy
Being retired means having many free hours to fill on a daily basis. And it could get expensive.
The advantage of keeping a job is that you will have plenty to take care of. And rather than spending money to stay active and busy, you’ll earn money that you can use to pay for your expenses or give yourself additional flexibility to travel or enjoy different types of recreation.
What does working as a retiree look like for you?
Nowadays, having a job as a retiree doesn’t necessarily mean working in a cash register or sitting in a call center all day. There are many creative projects you can take on, such as selling baked goods or crafts. Or, you can find an extremely flexible job, like driving for a rideshare service. You can even decide to start your own business.
Of course, if you manage to retire with a lot of money, you might not need to think about working as a senior. But in the absence of a really big nest egg, it’s worth thinking about what working in retirement might look like for you.