The benefits of working in retirement – and it’s not just about the money!
Why working in retirement is great for your social life, your wellbeing, and even your longevity.
Retirement is still perceived by many as an abrupt end to working life. The stereotype is that one day you’re striding into work with your briefcase and latte, the next you’re watching daytime TV and twiddling your thumbs.
In a country like New Zealand, where a higher standard of living means people now live at least 20-30 years after retirement, becoming a retiree is no longer such a dramatic shift from full-time work to full-time golf.
“My parents’ generation retired in their 60’s and had quite a short retirement. But these days people retire and live for 30 years afterwards, that’s a lot of time to fill with things to do now that people are healthier and their horizons are broader!”
- Financial Adviser, NZFP
As more people decide to continue working during ‘retirement years’, we thought we’d explore the reasons why – and share the holistic benefits of working later in life!
The changing retirement landscape
Life expectancy in New Zealand has been steadily rising. While 71 was considered a ripe old age in the 1970’s, today the average person lives until they’re around 82!
With this increase in life expectancy, we’re seeing people continue to live healthy and active lifestyles, and also continue to work long after the traditional retirement age.
So why would someone choose to continue working, even if they don’t have to?
- Social contact
More than 40% of seniors reported experiencing loneliness in retirement, and being isolated in your later years can pose significant health risks.
People often forget that their jobs are a central part of their social lives, and these connections can be lost once they reach retirement (or retire early!).
Continuing to work, even part-time, in retirement nurtures the social connections that are so important for our wellbeing.
- Job satisfaction
Those who are lucky enough to work in an industry or job that inspires them might want to continue working well into the ‘retirement years’, purely for the joy if it.
They might be a respected and knowledgeable employee, entrusted to train and support new staff. Or a university lecturer at the top of their field, committed to continue their research and teaching.
If your job still inspires you, you’re healthy enough to work, and not ready to move on or give it up just yet, why not continue? - Community involvement
Even those who can easily afford to retire early, might choose to volunteer for their local charity. The community involvement and social connections can be just as rewarding as a wage!
Retirees make up a huge portion of the voluntary working population, and participation in community altruism efforts has a positive impact on health and wellbeing.
Mythbusting: despite assumptions that working in retirement is detrimental, more studies are showing that those who continue to work later in life are living longer, healthier lives!
How NZFP can help
As financial planners, we pride ourselves on taking a holistic approach to financial security and wellbeing in retirement.
“My parents’ generation retired in their 60’s and had quite a short retirement. But these days people retire and live for 30 years afterwards, that’s a lot of time to fill with things to do now that people are healthier and their horizons are broader!”
– Financial Adviser, NZFP
Even if you can afford to retire early, you may wish to consider the benefits of working in retirement – even part-time or voluntarily.
As part of your financial plan, an adviser can show you the choices you have available based on your lifestyle goals – whether that means scaling back your working hours to allow for leisure activities, volunteering for a charity you’re passionate about, or working for some extra cash flow to spend on yourself each week!
Gain clarity and peace of mind by talking to one of our team of advisers.
“At NZFP we follow our own advice, too! I don’t see myself retiring anytime soon
because I enjoy the social contact and sense of purpose that comes with working as
a financial planner.”
- Financial Planner, NZFP
Wondering what your retirement will look like? Talk
to a financial planner from NZFP.
