Working post retirement

Working post retirement
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Retirement is a time to sit by the beach, take small vacations or spend time with family and friends. These options sound exciting but declining health and unwillingness to splurge on the retirement fund can make those golden years boring. Usually, people don’t look forward to retirement as they are too used to working.

Regardless of the strength of the retirement corpus, no salary (no regular income) can be a difficult phase to accept. This brings us to the question of working post retirement. There are many schools of thought behind this concept, however, there are a host of benefits to be derived from working after the age of 60. A few of them are:

  1. Social Interaction: Most people, post-retirement realise that their workplace was their only place of social interaction. A feeling of being socially isolated can lead to stress and health issues which can puncture holes in your retirement fund. You can join a social club to help sort this issue, but irregularity at the club can lead to a feeling of isolation too. Hence, a job helps keep you socially active.
  2. Physical and Mental exercise: To be able to live your golden years to the fullest, physical and mental health needs to be taken care of. After working for decades, a sudden lack of physical and mental activity can be detrimental to your health. Lack of purpose may render many retirees inactive leading to health issues. A part-time job can keep you active physically and mentally.
  3. Help your retirement fund grow: This is a big advantage of working post retirement. Whether you want to pursue your hobbies or travel or take care of your health -related costs, the retirement fund plays a pivotal role in your life as a retiree.
    1. People who start saving at a younger age have a good corpus by the time they retire. However, by not tapping into the retirement fund for a few more years they can benefit from the exponential effect on the retirement fund due to compounding.
    2. People who start saving relatively later in life can work post retirement to help them build the necessary savings for a comfortable life in their later years.
  4. Currency devaluation / Inflation: Retirement planning is a long-term process and by the time you reach your retirement age, a lot of things can change. The socio-economic scenario in the world is changing every day and so are the rates of inflation. Over the period of years, currency devaluates and you may find yourself at the shorter end of the stick. Working post-retirement helps counter such scenarios too.

In a nutshell, working post-retirement gives you a sense of purpose in your day-to-day life. It also keeps you socially connected and provides additional income. It is advisable to work post-retirement until such time that you are physically and mentally able to as it helps you stay fitter and wealthier.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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