If you don’t have enough money saved up to retire and you’re at the point where you’re ready to retire, you may want to consider working part time, part time or full time in retirement to supplement your income. This is a good option for a lot of people who don’t have enough saved up to retire.
According to a 2019 survey by the Employee Benefit Research Institute (EBRI), only 2 in 3 workers are confident in having enough for a comfortable retirement, and only 23% were very confident.
How confident are you that you will have enough money to live comfortably throughout your retirement years?
The reality is that it’s very expensive to live on your own. This is why so many seniors move in with family or into an assisted living facility to help save money. However, not everyone is ready to do that, so working in retirement is a great option.
It’s easy to underestimate how much you spend each month on fixed expenses like insurance, utilities, car payments, and rent. That study by EBRI also found that only 42% of respondents have actually tried to calculate how much money they will need. At Pension Solutions Canada, we provide you with online retirement calculators that you can use free of charge to see how big of a ‘nest egg’ you’ll have in retirement. The calculators will also will help you understand how much money you need to save or invest each month to reach your retirement goal.
By working part-time, you can drastically reduce the amount of money that goes toward these monthly expenses. In turn, this will allow you to set aside more money for savings and investments. It’s always good to have a few streams of income and having an active job will also help you stay active and engaged. But be sure to only work at a job that you enjoy so you can stay happy while working.
If you do have enough money for retirement, a part-time job can add additional ‘bonus’ income to give you extra spending money on fun things. A few examples include travel, going out to dinner, seeing a show, taking up a hobby, or buying that new car or boat.
Remember, you’re not working full-time, this is only part-time, which means that you won’t be working all day. You can work part time and do what you want the rest of the time. For example, maybe you only work a half-day shift on weekdays. Or, you only work full days two days a week, leaving the rest of the weekdays open to other activities.
Working in retirement can also help you get out of a rut and get out of your house. You’ll meet new people and you’ll be more active. It keeps you engaged in your community while giving you something meaningful to do every day. Social engagement improves physical health and emotional well-being.
A part-time job may also keep you from becoming depressed or bored, especially if you are a senior who has lost a spouse or a loved one. If this is the case, working part time can give you some much-needed companionship and even make you feel productive.
As you can see, having a part-time job while in retirement can be a beneficial thing. If you’re unsure whether or not you’ll have enough money saved up for your retirement, check out our retirement calculators or reach out to us with a copy of your pension commuted value estimate. We can do a free analysis for you and help you get started with a comprehensive retirement plan. Our services are no cost to you. Call Pension Solutions Canada at 1-888-554-6661 to get started today!