4 Reasons to Keep Working in Retirement | Smart Change: Personal Finance | madison.com – Madison.com

2. Adding small amounts of income matters (a lot)

You’ve run the numbers, the simulators, and the Monte Carlo analysis: You have enough to retire. Let’s say you’ve accumulated an impressive $1 million over the course of your career, and with the help of Social Security, you feel that you’re ready to hang it up for good. According to the 4% rule, you’d be able to withdraw $40,000 (annually and adjusted for inflation) to cover the costs of a 30-year retirement.

While $40,000 in annual inflation-adjusted withdrawals will take you pretty far — especially if you live in a LCOL (Low Cost of Living) area — it’s also not a tremendous amount to live on. Taking a part-time job for even $20,000 annually would have the same effect as adding an additional $500,000 to your nest egg; earning $40,000 would be the same as doubling your nest egg.

Even if the salary isn’t anything impressive, more money will simply mean more options in retirement, so don’t take small amounts for granted.

Image source: Getty Images.

3. Social engagement makes a difference

Source: https://madison.com/business/investment/personal-finance/4-reasons-to-keep-working-in-retirement/article_2d63bd70-25a7-58d1-a1fb-7c65bc80e491.html

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