Throughout your adult life, one of the primary goals you expect to work towards is that of retirement. You contribute to your 401K over the years to make sure you are financially secure after your working years are over, so you can relax and enjoy your post-retirement leisure. Though it sounds like a dream, many people find themselves quite unhappy after retirement. The lack of work makes them feel as if they have no direction, and worse, if anything were to happen that would threaten financial stability, retirement savings may not always be able to save you. With the help of leading savings provider, Ubiquity, we’ve compiled a list of all the benefits from working through retirement.
1. Financial Security
First and foremost, you entered retirement with the knowledge that you would have some semblance of financial security for the years to come. After all, it’s what you’ve been saving up for over the past several decades of your working life. While this is true, continuing work while you are simultaneously supported by your 401K allows you to increase your financial security all while striking a healthy work-life balance. The added security allows you to take a lower-paying, minimal stress job to get you through the tough times, despite your fixed income.
The sad truth is, only 24% of Americans believe that they will have enough money to live comfortably after they retire. Though you may not have to work to the same extent as you once did, working during retirement enables you to hold onto the savings you’ve already put away while continuing to earn interest and establish an additional stream of income.
2.Health Insurance Benefits
Continuing to work in after retirement can also help you to have access to benefits that you would otherwise have to supply for yourself. For example, you would be eligible to receive health insurance benefits from your employer, rather than having to make large monthly payments out of your own pocket. (This is especially helpful for individuals who retire under the age of 65, the minimum age required to qualify for Medicare.)
3.Paying Down Debts
Unfortunately, debt doesn’t just disappear once you retire. This financial burden is one that sticks with you throughout the entirety of your life – that is, until you pay these loans off. Instead of having to rely on a fixed income and distribute your funds with little wiggle room, getting a job during retirement can help you to pay down these loans while still being supported by your 401K.
The choice to continue working through retirement is very personal and should be influenced only by the unique benefits you can reap from it. These are only a few of the advantages you’ll experience if you decide to remain employed, especially when you have the help of a reliable retirement savings plan. With a stable retirement plan, you can be sure that you will be supported well into your future, whether you decide to continue working or not.