:max_bytes(150000):strip_icc()/GettyImages-594827587-b6d3830fb7894dc2ab5ac5d3039beba9.jpg "How I’m Talking to Clients Who Want to Keep Working During Retirement")
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When Serena Williams “retired” from tennis in 2022, she did so with a splash in the cover story of Vogue Magazine. Notably, she states that she doesn’t like the word “retirement” and refers to her transition as an “evolution.” This view perfectly encapsulates how I often speak to my clients about the concept of retirement.
For the Baby Boomer generation, the transition to retirement was signified by a dinner, a gold watch, and a wide-open calendar. For those of us in Gen X and beyond, this binary definition of retirement no longer rings true. Dozens of things have shifted, from the dwindling availability of pensions to the fact that retirement can now stretch for 30 years or more. Thus, many of us working now will approach retirement completely differently.
Key Takeaways
- Retirement is now a flexible concept, allowing for continued work or new careers, especially for younger generations.
- Staying in the workforce can boost mental health and provide purpose and community.
- Start by defining what you want from continued work—structure, social connections, or financial benefits—to guide your choices.
- Consider constraints and financial impacts when exploring job options.
What I’m Telling My Clients
I have always encouraged my clients to think about retirement differently and consider the option of still working in some capacity. Studies have indicated that retirement can impact health, too.
According to the American Psychological Association, certain middle-aged and older adults, especially women, who tend to disengage from challenging tasks and goals after they retire may be at greater risk of cognitive decline.
Staying in the workforce, even if it’s part-time or not a skilled role, can have significant benefits for our mental health and cognitive abilities. A sense of purpose goes far for our mental health.
Furthermore, having additional income is extremely beneficial from a financial perspective. As many people’s retirement now extends to several decades, bringing in even a small amount of income and withdrawing less from one’s portfolio can provide a lot of peace of mind.
If you’re considering working in retirement, here are some questions to consider:
1. What Are You Trying to Accomplish by Continuing to Work?
Do you crave structure and routine? The social aspect? Clarifying your objective will help you define exactly what type of role to pursue.
2. What Are Your Constraints?
Many of us will have some physical limitations as we explore new job options (such as not being able to stay on our feet all day long) or a preference for working certain times of day, shorter shifts, or near our homes. Be thoughtful as you consider what it will be like to step into something different.
3. Explore Possible Job Options
Talking with friends, asking about positions at some of your favorite local businesses, or experimenting with volunteering or all great starts. Gather data, but don’t let it hold you back for too long. There’s no harm in trying something and discovering it’s not the right fit for you.
4. Consider the Financial Implications
How will you handle the additional income? Will it enable you to withdraw less from your other accounts? Or will you use it to fund a hobby or other specific expense? Have a clear expectation of whether your income will impact Social Security benefits and Medicare premiums if you are eligible and participating in those programs.
The Bottom Line
The possibilities for working in retirement are endless, and there is no “one size fits all.” Reimagining retirement as an evolution rather than an endpoint opens up a world of possibilities. By embracing flexible work options and prioritizing personal objectives, individuals can maintain a fulfilling and purposeful life beyond traditional expectations.