Renae Diggles

May 25, 2020

Supplementing Income By Working in Retirement

Renae Diggles

May 25, 2020

The Benefits of Working Part-Time and Supplementing Income

Thinking of taking on a part-time job and supplementing income in retirement? Many of us underestimate the amount of free time available once we’ve downed our tools. You’re likely to ponder how to keep yourself occupied. Working and supplementing income on a part-time basis offers many 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’s a consideration. 

seniorman sitting at work desk: supplementing income

As the year gets into full swing, family and friends make their way back into work and into a busy routine. It’s often a trying time adjusting 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, fear not, you aren’t alone. The number of retirees moving out of retirement and back into the workforce slowly increases. Over a five year period, 26.7% of retirees returned to work per annum, most common in the 45 to 54 and 55 to 59 age groups. 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 Income in Retirement

There are many benefits in taking on work after retirement. The most obvious one would be supplementing income and returning to work. We know that not everyone needs to boost their finances at this stage in life. But, now that people live longer continuing to work has appeal to it. Those who return to work can still receive their pension and super in some cases. This is for those working part-time if they meet the right conditions. This means that you can contribute to the workforce and earn an extra income. This is possible all while drawing less from your pension-related funds

Planning to Have More Income Later in Life

It’s the perfect situation to build up extra finances for when you can no longer work at all. But, be aware that working can impact on your pension and super. According to MLC, your aged pension won’t change as long as your income is no greater than $300 a fortnight. It reduces after you’ve reached that $300 threshold.

Furthermore, there are conditions for adding to your super. You must’ve worked a minimum of 40 hours within 30 consecutive days in that financial year.  You must also be 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 can cause boredom and loneliness. It also creates a loss of meaning and identity for some retirees. This comes after what can appear as a lifetime of responsibility. Part-time work — whether it’s paid or volunteer, half-days or two to three days a week — can do wonders for your mental health. It gives many a sense of purpose and greater wellbeing during these quieter years. 

What Would You Do for a Retirement Income?

Many take post-retirement work as a chance to explore, or even discover new interests. Think about what you’ve always wanted to do or try, but never had the time to do. Now is the perfect opportunity to think about what you’d really like to do with your free time. Make sure it’s something you want to do, and not need to do. Now 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 thinking about it, give the idea of working some thought. The possibilities are almost endless. You can choose where you’d like to work. You can choose how often you’d like to work. Think about whether it’s a paid opportunity or not. And consider reaping the financial and health benefits that part-time work brings. You could create a renewed sense of meaning in your life and more retirement income!

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