Richard Eisenberg will retire in 2022.
At age 65, he resigned from his post of 10 years as editor-in-chief of Next Avenue, a PBS website for people over 50.
“I had a rough idea of what my retirement would be,” Eisenberg told Yahoo Finance. “I knew I wouldn’t ‘retire’ because I still wanted to work in writing, editing, and teaching, but not forever.”
So far, he has. Eisenberg, who lives in Westfield, N.J., explores “non-retirement” in expert columns, podcasts, and educational posts such as his online New York University Masterclass.
“There’s a lot of curiosity surrounding this idea,” he said. “I’m still a little surprised that it seems like such a foreign concept to people.”
Reports say more retirees like Eisenberg are leaving side hustles and returning to work, especially after the pandemic forced many to retire. new report From T. Rowe Price. About 7% of retirees are looking for a post-retirement job, while 20% say they are already working part-time or full-time.
“In 2021 during the pandemic, that percentage was 10%,” Judith Ward, a certified financial planner and thought leadership director at T. Rowe Price, told Yahoo Finance. “They may have been forced into retirement, but now we’re seeing them re-entering the workforce.”
Read more: How to find out your Social Security COLA increase in 2024
There are two main reasons for returning to work, and these are contradictory stories. Forty-five percent, like Eisenberg, chose to work for social and spiritual benefits, while a slightly larger percentage (48%) felt they needed to work for financial reasons.
Elderly people, i.e. people over the age of 65, A rapidly growing group of homeless peoplemeanwhile Poverty among America’s elderly is worsening. Policymakers and researchers are also concerned that the percentage of older Americans with debt has risen from 38% to 63% since 1990, according to a recent report. There is. report By Boston University Retirement Research Center.
“Many people left their jobs during the pandemic for a variety of reasons, and the economic reality is now hitting home,” says author Chris Farrell.Not retired” and “purpose and salary” he told Yahoo Finance. “Working even a few hours a week can help improve your household finances.”
“They are taking advantage of the tight labor market to exit retirement, often opting for part-time work, flexible work, starting their own businesses or even encore careers.” Farrell said.
Gary Sorcha, 69, of Damascus, Maryland, was laid off and retired from his publishing job during the pandemic, but returned two years ago and now works four hours a day as an advertising and events representative. I work part time. .
“It was too early. My wife is five years younger and still working,” Soča told Yahoo Finance. “Financially…it just seems to make sense to make a little more money and have a little bit more security and comfort in retirement. I’m going to continue doing this for a while.”
For other retirees, the lack of retirement planning and savings is back to haunt them.
“It’s not uncommon for people to retire without actually planning for retirement and run into financial surprises along the way,” says Mark Miller, a retirement expert and author.Restart after retirement” said Yahoo Finance. “That may lead some people to go back to work. Also, the faster pace of inflation that we’re experiencing is also motivating some people to go back to work to cover their living expenses.”
Of course, the key is how much wealth you have available. Whether retirees say they don’t need to work varies greatly depending on their household assets. The T. Rowe Price report surveyed 2,895 401(k) retirement plan participants and 1,136 retirees with rollover IRAs or balances.
According to the report, 37% of retirees with household assets of less than $50,000 said they did not need to work, compared with 55% of retirees with household assets of $50,000 to $250,000 and those with household assets of $750,000 or more. Among retirees, the figure was 72%.
Women are especially vulnerable. The report found that 49% of retired women working or looking for work said they needed money, compared to 41% of men.
One reason for this is that many women will have less savings to rely on in retirement, and their Social Security benefits will be reduced as they take time away from work to care for family members.
Click here for details Popular savings tools: 4 alternatives to savings accounts
“Lower incomes, higher debt burdens in general, student loan burdens in particular, and shorter working years contribute to the savings gap between men and women,” said T. Rowe Price, vice president and vice president of said Sudipto Banerjee, a retiree and author of the report. At Yahoo Finance, more sensible Annual Women’s Retirement Symposium.
The biggest financial reward for working for more years of paid work is delaying withdrawals from retirement accounts, continuing to save, and delaying claiming Social Security benefits.
“Increasing your income not only gives you more time to save, but it can also help you pay down debt and increase your cash reserves for full retirement,” Ward said. And for non-retirees who haven’t started collecting Social Security benefits, delaying claiming can mean paying more money down the road.
“You get higher benefits and it’s inflation-adjusted, so it’s a good deal for a lot of people,” Ward said.
What you feel by continuing to work
There’s also the psychological appeal of working, which is the second most cited reason for retirees choosing to return to work.
A T. Rowe Price report found that many retirees believe part-time work is a good transition strategy, with 57% of retirees wanting to continue working in some capacity. Men in particular were more likely to cite social connections as a motivation for their work.
“Many of us want to work part-time after we retire,” Eisenberg said. “We want to stay active, have social connections, bring in income and stay mentally engaged, but we also want time to do other things.”
Additionally, Eisenberg said he has the freedom to do what he wants this time. That means choosing a work route that’s not filled with meetings and administrative tasks, “the parts of my previous job that I didn’t really like.”
And there are psychological benefits of work, retirement coach Robert Lawler tells Yahoo Finance.Several the study It shows that working has a positive psychological impact. In fact, among the elderly, retirees tend to be as follows: experience depression compared to people who are still working, according to one recent paper.
“Work provides routine, structure, connection, mental stimulation, purpose, and relevance,” Laura said. “These are all things that many people don’t realize they’re losing when they quit their jobs, and they can’t be easily replaced with golf, grandchildren, and crossword puzzles.”
Kelly Hannon is a senior reporter and columnist at Yahoo Finance. She is a workplace futurist, a career and retirement strategist, and the author of her 14 books, including “The World’s Best.”Taking Control Even Over 50: How to Succeed in the New World of Work.” and “You’re never too old to get rich.” Follow her on Twitter @Kellyhannon.
Click here for the latest personal finance news to help you invest, pay off debt, buy a home, retire, and more.
Read the latest financial and business news from Yahoo Finance