Don't Retire, Keep Working

It's a "new" topic in personal finances recently -- never retire. There are lots of advantages to this strategy including financial advantages, physical advantages and mental advantages. It's gotten to the point that I've even written a series on reasons not to retire.

To add to this conversation, here's and article from MSNBC that gives some thoughts on what to do when you don't retire. The comments I thought were most meaningful are as follows:

Maybe the answer for you will be to develop a hobby, such as stamp collecting or visiting Civil War battle sites, into a major, time-consuming, non-paying pastime. But on the other hand, you could find that the best way to replace the rewards you receive from work is to keep working — especially if it's a different, less stressful job, with fewer hours, a new boss (maybe even yourself), and a new focus.

The best time to give serious thought to this issue is before you retire from your main job, before you burn any financial or social bridges. Planning ahead will also give you time to negotiate a new role with your current employer or, if you want a change — such as working for yourself or starting a small business — to get your financial ducks in order before your paychecks stop.

In our fast-paced world, it's all too easy too assume that the only retirement planning required is to figure out how much money to amass in a 401(k) or individual retirement account. But money is not the only valuable resource available to spend in retirement. Another is your time. As with the money, it would be a shame to waste it.

Very good points to add to this discussion.

Personally, I hope to never retire. I'd like to volunteer at a non-profit organization, downshift into a more "fun" job, or develop a hobby into an income.

Comments

[Kira]

Unfortunately a lot of the financial sites are now touting the strategy of working longer as a fix for not having enough retirement money. You can never know when an injury or layoff might force you out and ruin your plan. A fat 401(k) in the hand is better than a well-paying job in the bush.. Or something. =)

[traineeinvestor]

I am a big fan of the idea of keeping active when in retirement. This includes working. The benefits of keeping physically and mentally active are huge. Personally, I think I would go insane if I did not have something to keep myself occupied.

I am hugely opposed to the idea that working is a means of financing retirement. In my rather simplistic view of the world, if you have to work to make ends meet then you have not retired - you are still working. People who plan to rely on work to finance their retirement are taking a huge risk on their future health and a number of other factors.

[Brad]

Like Kira said, if you can work that is terrific. Nothing will serve you better than a plan with some long-term disability and LTC insurance.

If you never need the policies, you can do whatever you desire along with having financial peace of mind. If you do have the insurance and need it, you can do what you are able to do with much less financial concern.