At Gregory Ricks & Associates, we’re seeing more people approach retirement with a flexible mindset. Retirement is no longer always a hard stop, it can also mean shifting into a new stage of work, whether part-time, project-based, or even in a completely different field.
Why Many Choose to Keep Working
Working in retirement can provide more than just a paycheck. Many retirees share with us that they value:
- Purpose and connection. Staying active, contributing to a team, or even mentoring within your community can provide meaning and social interaction. For more ways to build purpose and connection, read Building a Fulfilling Life After Retirement – Gregory Ricks & Associates.
- Health benefits. Studies suggest that loneliness, the painful feeling that arises when one’s need for social interaction isn’t met, increases the risk of dementia by 31%. Continued work may help maintain mental sharpness and reduce risks associated with feeling alone. (National Institute on Aging)
- Financial security. Extra income may help offset rising living costs and stretch retirement savings further.
The Challenges to Consider
While continuing to work can be beneficial, it’s not always guaranteed. Recent reports highlight that:
- Job opportunities for older adults may shrink in certain industries.
- Age discrimination remains a reality for some.
- Health concerns can unexpectedly shorten the ability to work.
This is why we encourage clients not to rely solely on the idea of “working longer” as their retirement plan. It’s important to prepare for both scenarios: being able to work, and potentially needing to stop earlier than expected. (Market Watch)
Exploring Flexible Options
For those interested in working during retirement, there are several paths to consider:
- Phased retirement: Gradually reducing hours at your current job.
- Part-time or consulting work: Sharing your expertise on your terms.
- Encore careers: Transitioning into fields such as education, nonprofits, or other areas where you can give back.
- Side projects: Turning hobbies or skills into small income streams.
The Bigger Picture
Before deciding to work in retirement, it’s important to understand how additional income fits into the bigger picture:
- How will it affect your Social Security benefits?
- What impact could it have on Medicare premiums or taxes?
- How might it change the drawdown strategy for your savings?
These questions don’t have one-size-fits-all answers, which is why retirement planning should be reviewed regularly.
We’re Here to Help
At Gregory Ricks & Associates, our goal is to help you design a retirement that works for your lifestyle and priorities. For some, that means continuing to work. For others, it’s about creating a plan that provides freedom to step away completely. Either way, understanding your options today can help you move into retirement with more confidence and clarity.
Related Content:
Building a Fulfilling Life After Retirement – Gregory Ricks & Associates
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This article is meant to be general and is not investment or financial advice or a recommendation of any kind. Please consult your financial advisor before making financial decisions. For more detailed information, contact a financial advisor with Gregory Ricks & Associates, Inc. Investment advisory products and services through AE Wealth Management, LLC. (AEWM) Insurance products are offered through the insurance business Gregory Ricks & Associates, Inc. AEWM does not offer insurance products. The insurance products offered by Gregory Ricks & Associates, Inc. are not subject to Investment Adviser requirements. Firm does not offer tax or legal advice. 3294161 – 9/25