social life

5 Ways to Embrace Having to Work in Retirement

Emily Guy Birken — Thu, 28 Jun 2018 08:00:15 +0000

We all know what retirement is supposed to look like: You get a nice farewell luncheon and a gold watch from your employer — and then you get busy golfing, traveling, spoiling the grandkids, and generally living it up in your golden years.

So if you find yourself with an underfunded nest egg and the realization that you have to continue working in retirement, you can be forgiven for wanting to throw an epic temper tantrum. Working in retirement is not what we were promised, and if that doesn’t warrant some flailing and crying, I don’t know what does.

But not being able to fully retire doesn’t have to put you in a permanent bad mood. Once you’ve stopped shaking your fist at the heavens, consider these ways to not only accept, but also embrace the reality of working in retirement.

1. You may be happier than retirees

Though it might seem like retirement is the key to happiness, psychological researchers have found that working is actually better for your subjective well-being. According to a 2014 study by Dr. Elizabeth Mokyr Horner in the Journal of Happiness Studies, retirees do experience a rush of well-being and life satisfaction in the first few months after they retire — but they feel a sharp decline of their levels of contentment within the first few years of retirement.

There are a couple of reasons for this decline in happiness. First, anything you spend years planning for is unlikely to live up to your expectations. It’s only natural for retirees to feel let down when they realize their new chapter in life isn’t exactly what they expected. In addition, when you end a career that has helped define who you are, it’s common to feel adrift once that career has ended. Finally, retirement can often lead to a shrinking social circle, since you no longer see co-workers on a daily basis. Lack of social contact can increase feelings of loneliness and depression, which can be a major problem among retirees.

Even if you are not happy about the fact that you have to work past retirement age, remember that working may actually be improving your happiness by helping to define you, giving you a broader social circle, and providing you with a reason to get up every morning. (See also: How to Find Your New Identity After Retirement)

2. You can make your workplace better

One of the benefits of working past traditional retirement age is the amount of knowledge and experience you bring to your job. Not only does that make you a valuable member of your workplace, but it provides you with an opportunity to help encourage and shape the culture there. By taking younger co-workers under your wing and making suggestions based on your depth of knowledge, you can potentially improve the company you work for. It’s tough to do this without the kind of clout your experience lends you.

3. You can put off taking Social Security

According to the Center for Retirement Research at Boston College, approximately 42 percent of men and 48 percent of women begin taking their Social Security benefits at age 62, the earliest you are eligible to receive them. But Social Security benefits are permanently reduced by up to 30 percent by taking them so far in advance of full retirement age.

If you are still working in retirement, you can put off taking your Social Security benefits, and thereby increase your monthly benefit by as much as 8 percent per year that you put off Social Security. In addition, you may also be increasing your Social Security monthly payment by continuing to work, since the Social Security Administration calculates your benefit based on your 35 highest earning years. If you are at the top of your lifetime salary while working past retirement age, these high earning years will replace lower earning years from your youth — and potentially increase your monthly payment. (See also: 6 Smart Ways to Boost Your Social Security Payout Before Retirement)

4. You are in a retirement investment sweet spot

Though working past retirement age may not be your idea of fun, it does give you an unparalleled opportunity to invest. First, since you are over the age of 50, you can take advantage of the catch-up provisions that allow you to contribute up to $24,500 to your 401(k) and up to $6,500 to your IRA, allowing you to reduce your tax burden while funding your retirement accounts.

In addition, since you are working longer, that means you have a longer investment timeline to play with. This can allow you to invest for growth in ways that a typical retiree could not, since she would be trying to protect principal. Since you anticipate working for a few more years, you get a few more years of the magic of compound interest working to build your wealth. (See also: 7 Reasons to Invest in Stocks Past Age 50)

5. You can keep using your employer’s health insurance

All Americans are eligible for Medicare as of age 65, but the program costs more than you might expect and covers less than you might think. Not only do you have to pay a premium of at least $134 per month for Medicare Part B, but you will be on the hook for 20 percent of the Medicare approved amount for health care after you have met the annual deductible of $183. In addition, Medicare does not cover prescription drugs, dental or vision care, foot care, hearing aids, or dentures.

Being able to stay on your employer’s health insurance could be a major benefit to working, since you are likely to have more comprehensive coverage under that insurance and it may be less expensive for you, as well. (See also: 4 Common Mistakes to Avoid When You Enroll in Medicare)

No need to curse the heavens

Working in retirement may not be what you planned, but it doesn’t have to feel like the end of the world. If you take the time to recognize how working in retirement can actually help your emotional, mental, financial, and physical well-being, you can embrace the reality of working when you’d expected to be golfing.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Social Situations All Introverts Fear

Paul Michael — Mon, 31 Aug 2015 11:00:28 +0000

Some of us are social butterflies, happily flitting from person to person in social gatherings and loving every minute of it. But not everyone is so comfortable in these surroundings. In fact, to some introverts, social situations can be a living hell; particularly (but not limited to) these seven stressful situations for soloists.

1. The Wedding Speech

Whether you're the best man, the father or mother of the bride, or the maid of honor, a speech is mandatory. And as this is a wedding, although there is obviously room for sentiment and love, there is an expectation of humor; especially from the best man.

Comedians spend years perfecting their skills in front of live audiences, testing material, and honing it until they get laughs. If you're chosen to do a speech, you have one shot at it. There are places to improve your skills, including local toastmasters clubs, but it's still nerve-racking for an introvert. With the entire wedding party looking your way, the cold sweats and shakes can come on quickly.

If you want to get through this, practice, practice, practice. And unless you are 100% sure that your bawdy joke or embarrassing true story about the bride/groom will go over well, don't tell it. You do not want to upset the happy couple in front of everyone they care about.

2. The Long Elevator Ride

Or worse, trapped in an elevator… aargh! Elevators are not fun for introverts. They are small, claustrophobic spaces filled with strangers. Getting on at the first floor and riding to the very top can feel like an eternity. There is this pressure to acknowledge the other people, but if you make eye contact they may just want to have a little chat. That's when you, as an introvert, will be looking everywhere for a way out. Some people will get off on the wrong floor and walk the rest of the way, just to avoid the conversation with a complete stranger.

If you take a daily ride in an elevator, and it takes more time than you're comfortable with, bring something to look at. A phone is great, and so is a magazine or newspaper. With your head buried, you can avoid conversations and eye contact.

3. Alone at a Bar

There is something that stings true whenever an introvert is alone at a bar, party, club, or any other place where people gather for fun and drinks; the worst time to feel alone is in a crowded room. For extroverts, it's no problem. If they're alone, they remedy that by talking to strangers, sparking up conversations, and dancing with people. Introverts don't have that ability.

As an introvert, being alone in a crowded place is tough. Really tough. You see conversations everywhere. People are laughing and joking with each other, having a great time, and you're stood, or sat, cradling a drink and looking at the exit sign. It's not easy. If it's not too busy, talking to the person behind the bar can bring some relief, as you have a legitimate reason to interact. There's always the phone as a standby, but that can be depressing. Your best bet here is whenever possible, arrange to meet people at the place you're going, or always go out with a group.

4. The Eulogy

Seinfeld said it best: "According to most studies, people's number one fear is public speaking. Number two… is death. Death is number two. Does that sound right? This means to the average person, if you go to a funeral, you're better off in the casket than doing the eulogy."

As social situations go, this one already has some major baggage. There has been a death of a friend, relative, or loved one, which is bad enough. There are a whole lot of people gathered in one place, trying to make conversation to relieve some of the tension. And to top it off, making a speech to a crowd of people, many of whom you don't know, is a social nightmare of an introvert.

Luckily, there is no pressure here to be funny, although you can be. But still, with all eyes on the speaker for a few minutes, this is not good for any introvert. Once again, you should definitely try your eulogy out on a few close friends, if you are nervous about it. At the very least, practice in front of a mirror, and work out any kinks. Plus, take note cards. No one will fault you for having a memory aid.

5. Packed Trains and Buses

Commuters who take the subways every day will know this pain all too well. Train compartments are not designed for personal space. They have seats, they have standing room, and at rush hour in big cities, they are filled to the brim with people trying to get to work, or get home. It's bad enough when you have to sit next to someone who is a chatterbox, but when you're standing elbow-to-elbow with a bunch of complete strangers, the anxiety can increase tenfold.

These situations are definitely best handled with either reading material (a phone, paper, puzzle book) or music and headphones. If you are in your own world, people are less likely to try and start any kind of conversation with you. And of course, try and avoid eye contact; especially with those people who seem eager to chat your ear off.

6. Surprise Parties

Introverts often have to attend social functions, there's just no getting around them. But, with enough time to prepare for the event, it's something that can be dealt with. A surprise party eliminates that buffer, and throws a big social event at someone who may not be mentally ready to be there.

Whether it's a birthday, a baby shower, a retirement, or anything else, these events put the introvert at the center of the gathering. The spotlight is on them, and they want to duck inside their shell and crawl away. If you are an introvert, you may want to drop hints that you really don't like surprises; especially surprise parties. If one is suddenly thrust upon you, take some deep breaths, smile, and try and find just a few people to focus on, instead of the whole crowd.

7. The Open Plan Office

So technically, this may not be a social situation like the others, but let's not beat around the bush… it forces introverts to be more social, regardless of how they feel about it. The basic issue is a lack of privacy. Introverts do not want to live their lives in public. They don't want to make calls in front of other people. They don't want to be seen doing their jobs, especially if the open plan makes it very easy to interrupt them with idle chit-chat.

If you are an introvert in an open plan office, you need to find ways to get the personal time you need. Don't eat lunch at your desk; instead, find a way to take a walk or go somewhere else. Wear headphones if you can, or even ear defenders, to block out noise and create your own space. And find creative ways to build a more private area for yourself, even if it's in the way you position your computer or the furniture.

What social situations are tough for you? How do you get through them?

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Best Money Tips: Improve Your Social Life

Ashley Jacobs — Thu, 05 Jan 2012 11:01:13 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some great articles on improving your social life, alternatives to joining the gym, and shopping and cooking for one.

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This article is from Ashley Jacobs of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Ways to Save Money at the Bars

Janey Osterlind — Mon, 27 Dec 2010 14:00:08 +0000

We all love to go out with friends, but I for one am hesitant to pay $8 for a glass of wine at a bar when I know I can buy the whole bottle at my friendly neighborhood wine store for only a few dollars more. Here are a few tricks I've developed to pinch my pennies without hurting my social life:

Shop Around for Happy Hour Specials

It might seem obvious, but my un-budget-conscious friends tend to go where we always go rather than considering deals. So, suggest a new locale. To find deals, you could try a site like www.happy-hour.com, but in my smaller town I've had more luck simply Googling "happy hour specials" and going with a local site (ours is compiled by a local magazine). Or you can also check out the websites of different establishments to get an idea of current specials.

Check Out Restaurant.com for 40-60% Off Coupons

These can be used on food as well. One caveat to these coupons, however: Read the fine print carefully. The restaurant whose coupon you’re purchasing generally sets stipulations regarding the coupon’s use, including days of the week that they can be used, minimum dollar amounts of purchases, etc. Also, smaller towns have a more limited selection of participating locations. If you’re hung up on the fact that a minimum purchase is required, try convincing your group to go in on one. A bonus for signing up for a free Restaurant.com user account is that you can choose to receive e-mails that will regularly offer you 70% – 90% off the coupon price. I recently bought three $25 coupons for a total of $6.

Eat Before You Meet

Planning a later happy hour or time to meet friends gives you the opportunity to eat at home beforehand. I know, sometimes the point of meeting friends is to have a fun night out that includes trying new restaurants. If it’s more about the socializing, though, pushing back your meeting time gives you the chance to eat at home, which is almost always a more frugal option. Another plus: You have time to take the dog out and change out of your work clothes, an opportunity I always welcome. If you are actually excited to try the food somewhere when meeting friends, you can always eat at home first and then order an appetizer or dessert with drinks, which will also cut down on overall spending.

Drink Less, or Not at All

To some, this sounds like a terrible idea. But I promise you, drinking less (or teetotaling) is not the worst idea I've ever had. In the past several years, medical research has pointed out the benefits of consuming alcohol in moderation, including reducing your risk of developing heart disease, dying of a heart attack, or developing diabetes. If you feel awkward not having something in your hand at all times, try ordering a "mocktail." Alternatively, you could try alternating alcohol with a glass of water — not only will it rehydrate you and prevent you from drinking too much in one evening, but it will also prevent you from lightening your wallet by spending too much on alcohol!

What tricks do you use to save money at bars? Share your ideas in the comments!

This article is from Janey Osterlind of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: