Why You Might Choose to Work in Retirement

"Working" and "retirement." They may seem like a contradiction in terms. Yet, the line between the two has become blurred as more Americans remain in the workforce beyond the traditional retirement age of 65 or find that the end of a long career spent in one field doesn't have to mean an end to their working life.

Some call it working in retirement; others just call it working. Whatever one calls it, it's likely to become even more common in the years ahead for two important reasons: increasing life expectancies that mean retirement itself can last much longer today than it did for previous generations and insufficient retirement savings rates, which mean that some people will have little choice but to continue working into old age. For those with the luxury of being able to choose to work in retirement, there are several possible motivations, including staying active, for social stimulation, or just to have a reason to get out of bed in the morning.

Morningstar readers shared their own stories of working in retirement, or their plans to do so one day, on our Personal Finance discussion board this week. You can read the full conversation here. Below are some excerpts.

'I Really Missed Working'
Many posters said they're retired and plan to stay that way, with a few mentioning never wanting to work for someone else ever again. But there were also many others who said they have found it energizing to continue working.

"I retired 8 years ago at age 57, took the first year off, then taught an electrical technology night course at the local community college to apprentice electricians for 3 years," said BobVermont. "It was great being in touch with young adults, getting to know how they think and what interests them, and also keeping up my technical skills. I stopped teaching after the grandkids were born, and helping out with them has become my all-time favorite way to spend my time."

"[I am] three years in to retirement, operating on the theory that men who don't have something to do to stay active do not live long lives--a theory that I have seen happen," wrote Stanjo. "Making a living, while no longer an absolute necessity, is still keeping me active and it can be fun, low-stress, and not big money. I have, so far, been doing consulting work for an industry association related to the business I used to own. Done consulting for a company specializing in mergers and acquisitions and worked as an extra on a TV series that was being filmed near where I live, but it was on my 'bucket list' and was a lot of fun."  

In fact, several readers said working in retirement is not really about the money, but rather about keeping busy.

"I worked in information technology for 35 years and retired in 2009 at age 62," said OldFyrFighter.  "I have several multiples of the financial resources necessary to live comfortably. I have no interest in golf, country clubs, or a pretentious lifestyle. I do enjoy travel but I am not into tourist traps and lavish vacations. The point of the preceding text is that I don't need a job, but after two years of retirement I really missed working. I missed the people and social interactions--I did not miss the responsibilities and associated stress. So, I found a part-time job that is easy, interesting, low/zero stress, and paid by the hour. I work five or six days a month and when I punch out the job stays there and I go home. I have been doing this for three years now and it works great."

Another retiree who went back to work for social reasons is RZH123. "I retired from public service at age 60," the poster said. "Eight months later I thought I needed more interaction with others. Back to work in the private sector, part-time, in the same business sector. What I know best. I have no desire to do 40 to 50 hours again. We saved enough to make money a non-issue, but the social interaction that comes at a workplace is hard to replace."

A number of readers mentioned how much they enjoy the freedom to work on their own terms, whether that has meant scaling back to part-time or even setting their own hours.

Klucsamj wrote, "I retired in February 2013 after working 32 years with a global manufacturer of gases and chemicals as a logistics manager. My wife retired one year before me; she was a part-time reading aide. I'm 65 and I work part-time as a courier for a medical lab. I am also a volunteer driver for the American Cancer Society Road to Recovery program. I do per diem, which means I can work when I choose to. I enjoy these activities along with traveling, lunches/dinners/movies/shows and a daily exercise routine. I still maintain contact with former colleagues, both retired and still working. I don't miss full-time work. No stress, however I still feel I am contributing both in my paid and volunteer jobs. I believe it's important to have an itinerary, even in retirement, and the beauty is I set all of it."

'Different Than Anything I'd Ever Done'
Another common theme among retired readers was the opportunity to do something different with their lives, whether by design or by accident.

Bartbert described how he planned ahead for the transition to a new encore career.

"Worked until 57 and decided in the last two years to prepare for something different," he said. "Decided to take prep courses for CFP [certified financial planner] certification. Now in my seventh year of working as an independent financial advisor. Would agree that working for oneself is a big improvement over a large corporation. I really enjoy the varied challenges of helping a diverse clientele figure out a plan and execute it. Don't really know if I plan to give this up until I have to."

Susan9520 was among those whose retirement plan took an unanticipated turn, albeit a positive one. "When I lost my job I decided maybe it was time to retire," she recalled. "I also decided that I would try different opportunities as they came along. I ended up volunteering in our local government offices and working with AARP helping with income taxes. While I enjoyed doing taxes, the other one I found boring. During that time I was also attending Weight Watchers meetings. As it turned out, I ended up working there and have been both a 'receptionist' and 'leader' for the past few years. Doesn't pay much, but it's different than anything I'd ever done and I've met some amazing and interesting people."

Alpro1 also decided to take a swing at a new role in retirement, although one he admits he may not be able to do forever.

He wrote, "I semiretired at age 58. I took a pension and a buyout and decided to work part-time in a second profession: teaching tennis. As a certified pro I am a head pro in the summer up north and work full-time for approximately eight weeks. Outside of that I work part-time the rest of the year. I teach tennis in Florida in the winter part-time and teach and coach in Michigan outside the eight-week block. The way I have it set up is that I can enjoy nice weather year-round, do something I enjoy for income, and supplement my pension without drawing down on my savings. In fact, since retiring I have added to my portfolio. I plan to continue working until my body is unable to. ... I figure I can work into my mid- or late-60s if I continue to do as I am doing with some continued tapering. Semiretirement is awesome. I am living the dream and find that balance is the key."

Like alpro1, sh2dist is using retirement as an excuse to do something completely different but with a strong athletic component.

"I retired from academia at 55," he said. "My wife was 54. We moved, downsized and enjoyed ourselves, but we missed contributing somehow. So my wife found a job as a teacher at a Montessori preschool and spends the rest of her day helping our daughter and her family. I was easily convinced to get certified as a personal trainer, and for most of the last dozen years I have been training people and teaching classes at a local recreation center in a seniors' community. I do not advertise and take on only a few clients. I charge a nominal fee and get a kick out of improving the quality of their lives. There is still plenty of time for hiking, painting, and reading around our part-time jobs."

Several Morningstar readers said that managing their retirement portfolio is the only work they're willing to do at this point. But a few others had more ambitious financial goals.   

"What retirement?" said berniefiedler. "The plan was to have me train my replacement by age 62. I decided to start my own company after that, but my replacement made me an offer to stay on that would have been difficult to replicate. [I have] over 30 years of experience in the trust and financial planning field. I'm having a ball working with a spitfire of a manager and making good money with lots of flexibility and time off. My dad and mom worked until their mid-80s and I'm hoping for the same."

Ena1902's retirement led him to open his own real estate business. "I retired at age 48 as a partner at a small law firm," he said. "... My wife and I traveled and relaxed for a year or so and then I spent some time in community affairs. I then began small real estate developments and have continued to do so for the last 25 years, but nothing more demanding so as to prevent me from spending six months a year traveling. If I couldn't finance a project out of my own money then I didn't touch it--'stay small, grow tall' was my criteria. Had a great time."

'I'm Scared About Retirement'
We also heard from readers who are still working but trying to figure out what they'll do after they stop, including Cheesehead825, who said candidly, "I'm scared about retirement and it's not for financial reasons. I'm 57 and my wife is 58. We've been fortunate to save enough to retire. I'm not ready to retire for two reasons: 1. I like to work. It adds meaning and purpose to my life. 2. I fear retirement simply because I don't know how I'm going to meaningfully occupy myself. I work for a large company. While I'm well-regarded, reorganizations and restructurings are not uncommon. In 12 or 24 months the train ride may come to an end, and then what? 'Honey, I'm home?' I golf. I volunteer. I like travel. But is that enough to meaningfully and consistently fill a day? What else am I going to do? Join the coffee klatch at the local Dunkin' Donuts? I don't know. And that's why the prospects of retirement scare me."

Others, however, were less concerned about that they'll do in retirement.

"I would like to work at the university as a chemistry lab instructor or lecturer, but I have not taken any steps to do anything about that," said dragonpat. "I don't plan to retire for another four or five years."

SteveJewell outlined his plan to spend retirement living as a "gentleman farmer" on rural property he owns. "It's my plan to take a part-time passion and make it more of a full-time gig," he said. "... My challenge will be to keep it small and relatively easy. It's about only doing what I want to do rather than much of anything I have to do. That will define 'satisfying work' in retirement for me."

FingerlakesGuy plans to turn his passion for photography into extra money once he retires. "Even though I don't expect much in the way of income, at the very least it can reduce my taxes against my actual income (pension, 457 distributions) for a while," he says. "I am also considering doing some furniture-making. Again, I don't expect to make a great deal, but it will help against taxes, keep me busy and productive. I am trying to make a profit, but I have the luxury of moving on to the next adventure if the current one isn't working out. There are so many opportunities at self-employment. I'll always be looking for a new venture to keep my mind active."

For those who are still working but thinking about what they'll do in retirement, retiredgary suggests not making too many assumptions just in case things don't work out as planned.

"I think the most important thing about working in retirement is not to count on it as a necessary part of your planning for retirement unless you have a very good reason for doing so," he said. "It may pan out, and it may not. People may not be healthy enough to work or may be unable to find a job they are willing to accept. Not everyone will find success as a part-time consultant or open a successful part-time business, and there is still a lot of reluctance in some employers to hiring older people part-time in non-menial regular jobs. It seems better for most of us to look at income from second careers in retirement as a bonus we may not get."

Comments have been edited for brevity and clarity.