Why people return to work after retirement

Despite all the rhetoric about raising the retirement age, the debate may be moot. A recent study by Paychex found, "1 in 6 retirees are considering returning to work." It's also worth noting that 53% of those considering returning to work want to work remotely.

No matter how you slice it, people at traditional retirement age don't want to stop working. Does this seem strange to you? Isn't the point of retirement to sit back, relax and enjoy life?

Do you have to go back to work after retirement?

And if so many retirees are returning to work, wouldn't it be natural for you to consider doing the same? If you step back and think about the possibilities, you may be surprised to discover that you have a lot to gain from working, even if it's a part-time job after retirement.

“It could be very beneficial for some people to return to work after retirement,” says Bob Chitrathorn, chief financial officer and vice president of wealth planning at Simplified Wealth Management in Corona, Calif. "If they've reached full retirement age, they can collect Social Security and continue working without worrying about a Social Security deduction if they earn too much. It's also great for those who love what they can do. It gives them something to do and makes them money rather than spending free time spending money."

Why are retirees returning to work?

There are many reasons to return to work during your retirement years. Do any of them mean anything to you?

Robert Reilly, finance faculty member at Providence College School of Business and financial advisor at PRW Wealth Management in Boston, says, "The decision to return to work depends primarily on three things:

Do you want to? Is there a meaningful second career you'll enjoy? Do you have to make ends meet? »

Retirees face many challenges, but…

Is it worth returning to work after retirement?

Of course, there are trade-offs if you return to work after retirement. You will need to assess the impact that continuing to work will have on you, your family and your projects.

"When we update a financial plan, we can easily model the impact of continued income in retirement," says Emily C. Rassam, senior financial planner at Archer Investment Management in Charlotte, North Carolina . "If it's not necessary, we urge our clients to think about quality of life and whether the job would be enjoyable."

To determine the value of working in retirement, you need to have a good idea of ​​your lifespan...