Pros & cons of working after retirement

Working after you retire may not be something you would think about before you have the chance to. Everyone works so hard their whole lives, sometimes managing multiple jobs at once, always wanting to retire and gain back some peace & quiet. But when you finally get to retirement, it can be like hitting a brick wall; not knowing what to do & feeling lost with your time.

A figure that came from Alistair McQueen, Head of Savings & Retirement at Aviva state showed that “almost 1.4 million people are working beyond the traditional retirement age of 65” which is apparently, at “an all-time high and nearly triple the number in 2000”. This percentage (%) identifies that a lot of individuals are still taking up work, be it part-time or full-time after they have officially or unofficially retired.

So let us unpack the pros and cons of working after retirement, and what it can mean to you if you are thinking about possibly following the 1.4 million individuals working beyond the traditional retirement age of 65.

What are the advantages or working after retirement?

1. Earn an extra income:

Often, a retiree might look for a new job after retiring because the cost of living has increased and/or they don’t have enough funds to cover their living expenses. And to back this up, statistics were found by a recent study; from “March 2021 to March 2022, the average inflation on prices for all items increased by 8.5%, a significant increase compared to the year before when the increase was only 2.6%”. This could explain the need for individuals to find work even after retiring… as well as other factors such not being able to save enough for retirement due to an unexpected financial setback.

From a different perspective, jobs after retirement can be used to provide you extra leisure money to go and visit some of those destinations you have always dreamed of or buying that new sofa you have been putting off splashing out on.

Some more benefits of working a traditional 9-5 after retiring, is that you will also be continuing to pay into National Insurance- which could, potentially, increase the value of benefits you are entitled too later.

2. Ease Boredom

Most individuals work their whole life, so when the time comes to sit back and relax it may be harder than you think! Some may be hit with a sense of boredom that comes from being busy 24/7 to the direct opposite; having nothing to do. A lot of jobs provide mental stimulation, in which a change of routine could result in boredom when faced with filling long days with other plans that may not provide the same kind of satisfaction you were used to before. Going back to work may help ease this boredom, choosing an old passion and picking up a new job to learn skills that you haven’t been able to access. A good backup plan would be to do a part-time job, maybe one that was voluntary, to give you the excitement of a job combined with the benefits of having a more flexible schedule.

3. Staying social

Working after retirement might provide a more active social life. A workplace often provides you with a social life both in and out of working hours, and this will potentially be lost when you stop working. Studies find that an unforeseen side effect of retirement and leaving the workforce is that a lot of your friends are colleagues, and making new friends is even harder if you don’t continue to explore other outlets to meet them.

What are the disadvantages of working after retirement?

1. Less Free Time

Going back to work after retiring can be retractive, in the sense that we work so many hours of our lives that we deserve to take back that free time. If you have saved and managed to create a worry-free retirement for yourself, the time you get back when you retire should be well deserved. It may not be about looking to fill in the time with work but filling the time with more soulfully, abundant activities. Use the free time that comes with retirement to have fun, find some new hobbies, and get to know yourself in a new way.

2. Being Realistic

If you are claiming your pension, any additional earnings from work may put you in a higher tax bracket. If you continue working, on a reduced number of hours or even part-time, it can impact the total pension payments you receive from your workplace. Although you will stop paying National Insurance when you reach the State Pension age, the amount of Income Tax you pay could rise if you start claiming any pensions, as these can be added to your total taxable income.

3. Re-adapting

Ever come back from a holiday longer than a few days, and forget how to work?  Imagine doing that after a longer period of time after retirement. If you wish to return to the same place of employment, the staff may have changed, or the company magic may have been left behind. It may also be a challenge to re-adapt to working longer hours again; you may have found it easy to fill your time with other activities, so it may be a struggle to find the time to fit work in as well!

How many hours can I work after retirement in the UK?

Taken from the official GOV.UK website, the answer to this question is that you can usually work for as long as you want to. A ‘Default retirement age’ (a forced retirement age of 65) no longer exists. It is up to each individual case but don’t forget to make sure to ask your employer if you can work more flexibly or work part-time. There are some cases where an employer can force you to retire at a certain age, and this is known as a ‘compulsory retirement age’ but they will have to give a good reason for the forced retirement such as the job requiring certain physical abilities or there may be an age limit that the law sets out.

Summary

To summarise, it’s clear there are obvious pros and cons to working after retirement, and it is ultimately up to the individual to decide what’s best when considering returning to work… It’s evident from many studies that one of the most prevalent reasons one returns to work is because you feel worried about feeling lonely in retirement. This is perfectly understandable and not uncommon, and it’s important to note that you are not alone. There are many other ways to combat loneliness and make friends as you get older. We have another article here that offers advice on how to make friends and develop new relationships in retirement living. Platinum Skies is happy to help where they can but ultimately, the choice is yours on what you want to make of your retirement. But don’t forget… we are always here to help! Book a tour at see what life could be like at one of our communities.