Don’t quit: The temptation to go back to work

Written by Chris Taylor

NEW YORK (Reuters) – When Mark Musil retired to the idyllic northwestern foothills of Connecticut two years ago, his days were filled with fly fishing and hiking.

Now, he fills classrooms with knowledge of climate science, chemistry, and biology, and shares his love of nature with high school students.

The change comes as no surprise given his career in environmental protection, including 15 years running the New York City Department of Parks and Recreation’s natural resources group.

However, this is completely different from the “retirement” he had envisioned.

Macil, 66, isn’t the only one tiptoeing back to work. Wealth manager T. Rowe Price calls this trend “non-retirement” in a new report. According to the report, about 20% of people who consider themselves retired are actually working full-time or part-time, and an additional 7% are actively looking for work.

“COVID-19 has forced many people to retire even if they still wanted to work,” said report author Judith Ward, vice president and thought leadership director at T. Rowe Price. .

“Things have changed for the better, and some people have found that they like not just the financial benefits of working, but the mental stimulation and social benefits as well.”

Ward said 1.5 million retirees had re-entered the workforce by March 2022, although more people than expected left their jobs during the pandemic.

The reasons for doing so are evenly divided. In the T. Rowe Price survey, 48% of people cited economic reasons and 45% cited social and emotional benefits.

If you’re nearing retirement or thinking about leaving and returning to work, there are some important things to consider.

Develop a social security strategy

Some people collect Social Security benefits as soon as possible to make ends meet. But if you can delay these checks by working longer, the financial benefits can be significant.

For example, if you collect Social Security at age 62, your benefits will be permanently reduced, but they will continue to increase by 8% each year until age 70, even after full retirement age. The difference will be reflected in your monthly checks for the rest of your life. .

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“If you can postpone it for as long as possible, the benefit could be twice as much as if you received it at age 62,” Ward said. “It’s a guaranteed source of income, and it increases with inflation for the rest of your retirement. That’s a big problem.”

Consider the emotional benefits

As we grow older, our social circles tend to shrink, which can increase feelings of loneliness, and we have a long way to go. According to research from the TIAA Institute, men who turn 65 can expect to live to 84, while women can live to 87 and are much more likely to live to be 90 or older.

You still have 20 or even 30 years left, but do you still want to step away from the social connections of your workplace? If you enjoy your office, staying engaged will help maintain your productivity, sense of accomplishment, and self-esteem. can do.

“I have an 84-year-old cousin who’s still a vice president at Chase,” Macill laughed. “It’s less about money and more about keeping your mind active and enjoying being there.”

It’s not all or nothing

This debate is not about either working fully or retiring fully. There are plenty of options in between, especially as working from home has become the norm. Create your own schedule for part-time work, project-based gigs, or consulting, remotely or in-person.

“There are ways to retire without completely stopping,” Ward said. “The employment landscape has changed. Now you can hire on your own terms.”

Macil still enjoys fishing local trout streams. But teaching whenever he wants allows him to participate in both worlds.

“What’s really important is a sense of fulfillment,” Matisil says. Despite his science background, he also enjoys introducing his high school students to poets such as Walt Whitman, T.S. Eliot, and Octavio Paz. “But economic problems are never a bad thing.”

(Reporting by Chris Taylor; Editing by Lauren Young and Richard Chang)