Today, 68% of workers rely on this source of retirement income – but should they be? | Personal finance

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Maintaining a job also has social and physical health benefits. Work can not only give you an opportunity to socialize, rather than being isolated at home, but it can also help you get moving, which could prevent or lessen a host of medical problems.

But while working in retirement is a good thing to expect in theory, it makes a number of assumptions. First of all, it assumes that you will be able to find a job that suits your schedule. Some companies may not want part-time workers – they may strictly want to hire full-time.

Second, if a recession hits, you may find it difficult to get or keep a job. The EBRI reports that only 23% of current retirees work for a salary, up from 31% in 2020. Some of those no longer working may have lost their jobs when the economy fell during the pandemic.

Also, while you may want to find yourself a job as a retiree, your physical health may not allow you to keep one. This is especially true if the only opportunities you can find are those that require manual labor or you are on your feet for several hours at a time.

As such, while planning to work in retirement is a good thing, it shouldn’t be a substitute for good savings for your later years and a strategic Social Security claim to make the most of your benefits. And if you’ve missed the retirement savings boat – let’s say you’re nearing the end of your career and really have very little money raised – your next best bet is to find a retired job that you are in control. . This could mean starting your own business or consulting as a freelance writer in your old field. This way you will have more say in the situation and not necessarily be at the mercy of other employers.

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