The Rise of Working Retirees: Embrace Flexibility and Stay Engaged in Retirement

After years of dedicated work, the idea of slipping into retirement may bring thoughts of relaxation and freedom from alarms. However, for many, retirement is not simply an end but rather the beginning of a new chapter. This new phase allows them to maintain ties to the workforce, drawing on the rich experiences and knowledge they've accumulated over the years. Becoming a working retiree offers the flexibility to choose when and how much to work, creating opportunities to socialize, keep the mind sharp, and supplement pension income.

A Growing Trend

The trend of working retirees is on the rise, underscored by statistics from the National Statistics Office (SCB) indicating that the number of older individuals participating in the workforce has doubled over the last two decades. A survey by Kantar, commissioned by a Swedish pension company, reveals that 64 percent of Swedes between the ages of 55 and 65 are contemplating part-time work during retirement. This phenomenon has gotten so significant that it earned a spot on Språkrådets list of new words in 2021, describing retirees who choose to work with a reduced workload alongside their pension.

Flexibility in job options resonates with both older men and women, who frequently pursue roles in caregiving, business services, or consultancy in their fields of expertise. If you’re intrigued by the idea of becoming a working retiree, consider these practical steps to embark on this journey:

  1. Skill Assessment: Reflect on the skills you want to utilize or enhance. Consider consulting, mentoring, project management, or creative endeavors.

  2. Pension Planning: Decide how you want to withdraw your pension. You can opt for withdrawals of 25, 50, 75, or 100 percent of your public pension monthly and adjust as needed. Keep in mind that occupational pensions may not offer the same flexibility, so check with your employer or pension company.

  3. Work Preferences: Think about the amount of work you wish to undertake and the preferred nature of your work. Many working retirees opt for flexible hours and shorter assignments.

  4. Choose Your Work Structure: Consider working as a self-employed individual through platforms like Frilans Finans, which allows you to invoice without forming a formal company. This structure provides security and freedom from administrative burdens.

  5. Financial Planning: Understand that continuing to work can enhance your financial stability. Part-time work coupled with partial pension withdrawals can create a secure financial scenario that extends your longevity in retirement.

  6. Stay Connected: For many, the social aspect of work is just as fulfilling as the job itself. Engage in networks and attend events to remain inspired and informed.

Facts about Working Retirees

The number of working retirees has grown significantly, with reports from the Swedish Pensions Authority showing an increase of over 20 percent since 2012. In 2022, there were approximately 263,000 working retirees aged 62 to 84 in Sweden, accounting for 42 percent of the nation’s labor force for that age group and 15.5 percent of the 62 to 74 demographic. Notably, the demographics skew towards a higher proportion of men among working retirees, along with a greater percentage of self-employed individuals compared to the overall population. The average age of working retirees in 2022 was recorded at 70.2 years, with the highest concentration of working retirees found in Gotland.

As retirement evolves, so too does the nature of work. For those seeking to maintain an active, engaged lifestyle post-retirement, becoming a working retiree may be a rewarding path forward.

Related Sources:

• Source 1 • Source 2