Financial Reasons to Continue Working after Retirement


For some older adults, retirement does not mean playing golf all day and sipping iced tea at the beach. For these older adults, it means continuing working after retirement. This is because, some retirees, although they don’t want to work, do so for financial reasons. Here are some of these financial reasons.




  • Inadequate savings – Many boomers put off saving for retirement, and this becomes an issue when it is time for retirement. It means they have to continue working or get another position in order to ensure retirement without financial worries.


  • Delaying the receipt of Social Security – Full retirement age is 67. If you wait till you are 67 to collect social security, you are assured of a larger sum of money than if you were to collect social security before 67. Most seniors prefer working till they reach full retirement age because then, they can build up their nest egg and this ensures a comfortable retirement.


  • The need for health insurance – Medicare coverage does not begin till you are 65. The cost of medications can take up quite a lot of money. So, this means if you retire before you are 65, you will not receive health insurance. However, if you retire from one job and take up another, with health benefits, you can apply for health insurance. Then, you can use your workplace health insurance, as well as, Medicare’s coverage to ensure lower medication costs.


  • Loss of value of investments – Sometimes, older adults continue working after retirement because they have lost money in various investments. The stock market, for instance, is extremely volatile. This volatility can affect your investments. For example, if the housing market is in a downward trend, you can be in a bad financial situation if you were planning on selling and moving to an active adult community. You may have to postpone this dream until you have covered your losses.


  • Receiving the pension while working – Some companies enable their employees to retire, and provide a pension. The same company will then rehire the employee. This allows the employee to receive pension checks while working, which will help increase his/her savings, which allows him to save up more for retirement.



Money is a big worry for many retirees. However, this worry can be alleviated if you are continually working after retirement.



This article is by ActiveAdultLiving.com®, the best website for information on active adult communities.