In the past, retirement has been portrayed as an ending, a grand exit from your years in the workplace. But the rules are shifting. Labor force participation among those aged 65-74 is predicted to reach 32 percent by 2022, up from just 20 percent in 2002.1 As the Baby Boomer generation ages, more people are viewing retirement as an opportunity to enjoy the rewards of work in a whole new way. If you’re considering working in retirement, here are a few reasons why it could be beneficial.
Reason #1: Improve Your Mental Health
Doing things like learning a new skill can help maintain mental agility. Working, especially in a new job, is a great way to continue learning and improving your skill set. Staying engaged in work helps to build your “mental muscle.” This is an effective way to reduce the risk of developing dementia or Alzheimers as well as ward off signs of aging.
Reason #2: Maintain Physical Health
Staying active during retirement years is crucial for continued health. Whether you choose to work full time or volunteer a few days a week, engaging in some form of work will keep your body moving. This can give you opportunities to stay balanced, strong and healthy.
Reason #3: Continued Income & Delayed SS Benefits
The longer you work, the longer you receive a steady paycheck. This, of course, can help boost financial stability and grow your savings. But in addition, working during retirement may afford you the ability to delay receiving Social Security benefits.
Social Security benefits become accessible at age 62, but full retirement benefits will only be available once an individual reaches their full retirement age, which is determined by their birth date. Any benefits received before reaching your full retirement age are reduced by a percentage, also determined by birth date, ranging between 25 and 30 percent.2
Depending on your circumstances, working into retirement may mean being able to delay benefits until your full retirement age. If you want to maximize your benefits, you can receive a retirement credit up until the age of 70. This bonus percentage is determined by how long beyond your full retirement age you wait to begin receiving benefits.
Reason #4: Sense of Purpose
Studies have shown that a sense of purpose has been found to lengthen lifespan and quality of life.3 Working on something you care about, starting a new business or mentoring others in the workplace can ward off depression and provide a healthy sense of fulfillment and direction in your later years.
Reason #5: Avoid Isolation
One of the risks associated with retirement is increased isolation, which in terms of its impact on your health, has been equated with smoking nearly a pack of cigarettes a day.4 Working with others reduces this risk, giving you a chance to build connections and enjoy meaningful interactions.
There are plenty of considerations to make before rejoining the workforce in retirement. When deciding if this is the right move for you, keep these important benefits in mind.
Ascend Investment Partners is not a legal or tax advisor. You should consult with your attorney, accountant and/or estate planner before taking any action. Ascend Investment Partners did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of the author(s) and are not necessarily those of Ascend Investment Partners or its affiliates. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy Services offered through Kesler, Norman & Wride, LLC dba Ascend Investment Partners, a Registered Investment Advisor. This message and any attachments contain information which may be confidential and/or privileged and is intended for use only by the addressee(s) named on this transmission. If you are not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are notified that any review, copying, distribution or use of this transmission is strictly prohibited. If you have received this transmission in error, please (i) notify the sender immediately by e-mail or by telephone and (ii) destroy all copies of this message. If you do not wish to receive marketing emails from this sender, please send an email to firstname.lastname@example.org Please note that trading instructions through email, fax or voicemail will not be taken.
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