Wondering how to transition to retirement? Maybe you shouldn’t. According to the US Bureau of Labor Statistics, nearly 20% of Americans 65 and older are still working.

That might sound like a sad statistic. But when you think about it, there’s a lot of reasons why a new career is the best way to transition to retirement.

You’ll probably live a long time

The traditional retirement age of 65 was set based on the idea that you’ll live another 8 or 10 years. But today, Americans live on average 78.8 years. That’s an all-time high. Life expectancy for women is even higher (81.2 years).

And facing the reality that you’ll live a really long time means that you probably don’t have enough saved for retirement anyway. Say you could somehow live on $1,000 a month for 10 years of retirement. You’d need $120,000 saved up. But what if you live for 20? Then you need $240,000.

If you think past money, then there’s the other question:

Do you really want to spend the next 20 years doing nothing?


You can pursue something you love

Maybe you’ve spent the past 30 years at a corporate job. It’s the same thing, 5 days a week, year-in and year-out. You’ve probably lost perspective on what it’s like to work on something you’re actually passionate about.

If you start a second career in retirement, then you can pursue something you actually love. It’s good for your happiness, but can also help you rake in some serious cash. You’d be surprised how productive and committed you can become to your work when it’s something you truly care about.

To stay healthy

Unless you make efforts to stay active and participate in your community, there’s no denying that retirement can stagnate your health. By starting a second career, you’ll stay mentally alert, keep learning, and stay active socially.

Science is starting to back up the idea that work is good for your health. Research out of University of Miami surveyed more than 83,000 Americans and found that seniors who work are healthier than their retired counterparts.
To improve your Social Security payment
If you were born after 1960, the full retirement age for Social Security is actually 65, not 60. So if you want to receive the maximum benefits of the program, you’ll need to wait to retire.

You can also continue to let your SSI grow up to age 70 because the full retirement age amount won’t be enough to sustain you in retirement regardless.

The same scenario works for your 401K or IRA. Delay tapping into these accounts to let them grow and help you build a bigger nest egg.

To reign in cash and boost your savings

This is the real elephant in the room for many people wondering how to transition to retirement:

They never saved enough for it in the first place.

Maybe you have some savings stashed away, but have you considered these hidden costs?

  • Adjustment for inflation
  • Rising medical costs
  • Long-term care for you and your spouse
  • How long you’ll actually live

There are a lot of ways to run out of money in retirement, and you don’t want to wait until you’re already 78 to do something about it. Starting a second career or even your own business is the fix you need if your current savings just won’t cut it.

How to transition to retirement has changed for a lot of Americans in recent years. If you’re thinking of working in retirement, remember these 5 reasons to get the most out of the experience.

Interested in starting a side hustle while you’re still working? Check out these articles.

5 Reasons An Online Business Is Your Retirement Fix

Do You Have What It Takes To Be A Late-Career Entrepreneur?

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