This Is Why You Shouldn’t Work During Retirement

Retirement is inevitable and terrifying. Not that good things don’t happen, but imagine tackling health issues, family responsibilities, job loss, death of a spouse or dear friends. And top it all, not having age by one’s side can be a devastating thing altogether. While most Americans realize that the economy has not fully recovered from the 2007 recession, they still plan for early retirement.

While it might be hard to believe, American Advisor Group reports that a mortgage company has empirical evidence. Their study suggests that almost 52% of Americans plan to come out of ‘full-time employment’ before reaching 65! Whether or not you decide to walk in the same route is a personal question. But it’s more sensible to live through the cons of retirement. There are pros too, but knowing the cons would undoubtedly help you assess why you shouldn’t work after retirement.

Health Deterioration Is Likely

Going by the National Bureau of Economic Research report from 2008, early retirement is a sure-shot way of stepping into a world of diseases. And that includes a decline in physical and mental health. Alongside, movement issues might stem in, and all these would cause bad after-effects on health.

No wonder, issues of strokes and heart diseases occur mostly around the retirement age. You must also note that health deterioration is an unavoidable reality. But those who choose to stick to an active life, both physically and socially, have greater chances of combating the ill effects. So, hanging up your boots and enjoying your retirement life can keep you away from the doctor’s office!

Can’t Rule Out Boredom

The transition from active working life to relaxed home life can be terrifying. Most retirees miss the daily routines of their full-time jobs, and it’s understandable. The unstructured model of living a retired life might not appeal to them.

Besides, they had colleagues and even the employer back at the office whom they could talk to made their day. So yearning to reach out to them makes sense. But if you desire to make a voluntary return to the workforce after you’ve quit- it can be quite problematic. According to a 2012 report by The US Government Accountability Office, people over 55 take longer to find a job than their younger counterparts.

Social Security Benefits Likely To Go Down

It is ideal for you to start taking Social Security later in life. Your benefits will decrease if you plan to cash on it earlier. For someone born in 1962 and started deriving benefits around the age of 62, the earliest age is that for eligibility, the monthly benefits are likely to be 30% less than what someone would get when they are 67.

That is the age that Social Security has deemed as the ‘full retirement age.’ After that, for every year you postpone it, there’s a chance of having an add-on of 8% monthly benefit. But there’s no bonus for delay after 70 years.

Retirement Savings May Not Last Longer

Imagine retiring at 62 and then living on till 90. That’s like 28 years! So your individual retirement accounts (IRAs), alongside other savings, should be able to cover for those many years. If you happen to do so when you turn 70 and live for the same time, then the savings are meant for 20 years.

As you keep working for a longer duration, it implies you’ll be giving more years to a retirement plant or a 401 (k). As a result, the money in the plan you have will get substantial time to compound.

You May Have To Pay More In Insurance Premiums

You’re eligible to get services from Medicare at age 65. So if your ex-employer hasn’t made provisions for your health insurance, it means you will have to pay it by yourself. Now in case you do, don’t get shocked when you discover that insurance premiums would be double or more than what you usually had to pay while in employment.

Now that you have the list of cons with you, it’s time to rethink what you intend to do, before embracing retirement. However, do not forget to discuss it with your loved ones before making the big decision.

Do you want to work after retirement? Or you want to enjoy it to the fullest and live your dream retirement? Do not forget to tell us all about it in the comments section!