The "Working Retirement" Conundrum

By Mary Clare McGraw

An increasing number of retirees are taking up a second job, even a second career, often totally unrelated to their pre-retirement career, with the underlying motivation of paying the bills. For a variety of reasons, surveys have shown that the majority of aging baby boomers are planning on working in retirement. That second job can be a great way for a retired individual to take up what was perhaps just an enjoyable hobby earlier in life and turn it into a source of income that acts as a security net in this unsure recession. Although it may be a necessity in order to maintain an income during a longer life expectancy, that second job owning a restaurant or a floral shop can be a pure joy and a way to stay occupied almost.
As enjoyable as a hobby-turned job can be, it is dangerous to depend on the possibility of that supplemental income later in life because there are a number of things that can happen to prevent an individual from being able to work. Studies have shown that one in four Americans won’t be able to work in retirement for one reason or another, whether it is a health problem, accident, or any unforeseen event. Working in retirement can be a blessing or a curse, but regardless of whether or not an individual plans to work in retirement, it is essential to save and invest years in advance.

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