Many successful retirees work at paid and/or volunteer jobs. One of the benefits of working in retirement is a greater appreciation of your leisure hours. Retirees report that paid employment and volunteering also help eliminate “down” periods, caused by too much leisure time on their hands. Another reported benefit is the therapeutic value of keeping mentally and physically sharp.
Through working and volunteering, you might also meet compatible people—people with similar interests and perspectives as yours. This can lead to developing new friendships and widening your social circle. Working and volunteering might also provide you with
opportunities to showcase your professional or trade skills as well as learn new ones. This can give you a great sense of accomplishment and can even lead to new careers.
“No one ever asked Picasso when he was going to retire, and I’m not going to fully retire either. I’m just getting much pickier about the kinds of projects I take on.”
—Jim N., consultant
Working for Money
Many retirees continue to work for a paycheque either by choice or out of necessity. If either of these situations applies to you, you might want to begin with your former employer. Employers are becoming more amenable to employing senior employees, including on a contract basis.
If that’s not an option or your preference, seek out new types of work. Consider seasonal work such as working in retail shops during the holidays or working at a lakeside resort in the summer.
“My best employees are retirees and former customers. These guys and gals know their stuff and the [hardware] store inside and out. They’re reliable and provide the old fashioned customer service we want.”
—Gora A., business owner
The number of options depends somewhat on where you live (and the economy). Do some research and be willing to step outside of your comfort zone. Here are some of the money jobs that might be available:
- Tutor
- Retail clerk
- Substitute teacher
- Courtesy shuttle driver for an automotive repair shop or a hotel
- Customer service representative
- Office assistant
“Retirement savings and pensions make ends meet, but that’s about all. I have worked at several part-time jobs over the past few years. My pay cheques go toward having some fun as well as the unexpected little things.”
—Mable K., former auto assembler
When looking for paid work, be extremely cautious with job offers that seem too good to be true, especially those that require you to contribute money upfront. Common examples of scams include “jobs” stuffing envelopes and assembling items at home.
Retirement might also be the time you’ve been waiting for to start your own business. The options are limitless and include consulting in your former field of work. Here are some other examples of careers retirees have started:
- Tax preparation
- Cake decorating
- Pet sitting
- Real estate agent
- Home staging
- Executive coaching
- Event planning
- Computer repair
- Small engine repair
- Child care
- Photographer
- Home inspection
Caution: Working for pay can affect your tax situation. Consult with a professional before you begin your search. Many retirees are not aware that RRSP or IRA distributions, pension payments, annuities, and CPP/QPP or Social Security payments are considered income. Adding income via a paycheque can affect your tax bracket. For U.S. citizens, it can also affect Social Security benefits and Medicare premiums. Consult with an appropriate advisor on these matters before you begin your job search. Consult yet again before accepting a job. Don’t expect a potential or new employer to guide you, as even human resource professionals rarely have this expertise.