The Benefits of Working Part-Time After Retiring
Thinking of taking on a part-time job in retirement? With more free time now, many people wonder how to keep themselves occupied? Working after retirement on a part-time basis offers both health and income benefits. But as with any new decision, it depends on your personal situation. If you’re looking for ways to be active in your retirement years, a part-time job is a consideration.
As the year gets into full swing, family and friends make their way back into work. It’s typically a busy time for workers. But for some, it’s a time to adjust to the much slower pace of retired life. Many retirees aren’t mentally prepared for the lack of ‘busyness’. So, if you’ve thought of making your way into some form of part-time work, you aren’t alone. Recent research has found that the percentage of retirees moving out of retirement and back into the Australian workforce is increasing. Over a five year period, 26.7% of retirees returned to work annually, mostly in the 45 to 54 and 55 to 59 age groups. Interestingly, even the 60 to 64 age group, saw around 8% of retired men and, at least 6.9% of retired women return to work each year.
Supplementing Your Retirement Income
While there are many benefits to taking on work after retirement, the most obvious one would be to supplement your retirement income. While not everyone needs to boost their finances at this stage in life, longer life expectancies have certainly made it appealing.
Even more, some people who return to work part-time are fortunately still able to receive their pension. But obviously the right conditions have to be met. This essentially means that you can contribute to the workforce and earn an extra income, all while drawing less from your pension-related funds. It’s the perfect situation to build up additional finances for when you can no longer work at all. But, be aware that this doesn’t apply to all and certain requirements must be met.
According to MLC, your part-time work may pay up to $300 for every two weeks of work in order for your pension not to stay the same. Additionally, you can only add to your superannuation if you’ve worked a minimum of 40 hours within 30 consecutive days in that financial year and if you’re below the age of 65 or aged between 65 and 74.
Mental Health Benefits of Staying in the Workforce
Luckily, boosting your finances isn’t the only benefit to making your way back into the world of work. More often than not, retirees forget to plan for life after their careers. This doesn’t only cause boredom or loneliness. It also adds to a loss of meaning and identity after what can appear to be a lifetime of responsibility. Part-time work, whether it’s paid or volunteer can be great. Half-days or two to three days a week can do wonders for your mental health during these quieter years.
Many people take post-retirement work as a chance to explore, or even discover new interests & hobbies. Have you always wanted to try something, but never had the time? Now is the perfect opportunity to think about what you’d really like to do with your time. Really make sure it’s something you want to do, and not need to do. There’s no need to step back into a fast-paced office where deadlines are tight and emotions run high. But, you can still achieve that past sense of purpose. As Upskilled so eloquently puts it, “A strong work ethic can be difficult to break, and many retirees find that even just having a part-time or a volunteer job is a great way to get that sense of accomplishment back.”
So, whether you’re retired, or on the verge of retirement, give the idea of working post-retirement some thought. The possibilities are almost endless. You can choose where you’d like to work, and how often you’d like to work. You can also choose whether it’s a paid opportunity or not. Also, you’ll reap both financial and health benefits, to bring a renewed sense of meaning into your life.