When Serena Williams “retired” from tennis in 2022, she announced her retirement in style in a Vogue cover story. In particular, she said she doesn’t like the word “retirement” and calls her transition “evolution.” This idea perfectly encapsulates what I often talk to my clients about the concept of retirement.
For baby boomers, the transition to retirement was symbolized by dinners, gold watches, and wide-open calendars. For those of us in Generation X and beyond, this binary definition of retirement no longer applies. A lot has changed, from the reduction in the pension you can receive to the fact that your retirement can last for 30 years or more. Therefore, many of us currently working will approach retirement completely differently.
Important points
Retirement is now a flexible concept that allows for continued work or a new career, especially for younger generations. Staying at work improves mental health and provides purpose and community. Start by defining what you want from your continued work: structure, social connections, or work. Economic benefits – guide your choices. Consider constraints and financial implications when considering job options.
What I tell my clients
I have always encouraged my clients to think about retirement differently and consider the option of continuing to work in some capacity. Research shows that retirement can also affect your health.
According to the American Psychological Association, certain middle-aged and older people, especially women, tend to retreat from challenging jobs and goals after retirement, which can increase their risk of cognitive decline.
Remaining in the workforce, even if it’s part-time or in a non-skilled role, can have significant benefits for our mental health and cognitive abilities. A sense of purpose is great for our mental health.
Additionally, having extra income can be very beneficial financially. Now that many people are retiring for decades, having even a small income coming in and having fewer withdrawals from your portfolio can provide great peace of mind.
If you’re considering working after retirement, consider the following:
1. What are you trying to achieve by continuing to work?
Are you looking for structure and routine? What about the social aspect? Clarifying your purpose will help you define exactly what kind of role you want to pursue.
2. What are the constraints?
Many of us will have some kind of physical limitation when exploring new work options (such as not being able to stand all day) or wanting to work certain hours, short shifts, or close to home. Probably. Think carefully about what it would be like to step into something different.
3. Consider possible job options
Talk to friends, ask about positions at your favorite local companies, try volunteering, and get off to a great start. Collect data, but don’t hold it back for too long. There’s no harm in trying something out and finding it’s not for you.
4. Consider the economic impact
What about additional income? Will you withdraw less from other accounts or use it for hobbies or other specific expenses? If you are eligible and participate in these programs, your income will be removed from Social Security benefits and Medicare. Be sure to clearly anticipate whether it will affect your premiums.
conclusion
The possibilities for working after retirement are endless, and there is no ‘one size fits all’. Rethinking retirement as an evolution rather than an end point opens up a world of possibilities. By embracing flexible work options and prioritizing personal goals, individuals can go beyond traditional expectations and maintain fulfilling and purposeful lives.
