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The Pros and Cons of Working Longer

working longer trend, pros and cons

There is a growing trend in the approach to retirement, with many people deciding to work beyond what was once considered the “normal” retirement age. As you consider your options, you may find that you need the extra income or you simply love what you do and identify with your job.

Recent studies show that about one in three people aged 60 and over continue to work. About half of these said they needed to work, and the other half wanted to work. More than three-quarters of today’s workers expect to be working into their retirement years.

Factors Contributing to the Working Longer Trend

There are many reasons to continue working past the standard age of retirement, which may include the following:

  1. Higher life expectancy and more years of good health.
  2. Fewer physically demanding jobs and more service-oriented jobs.
  3. Personal financial situations, such as approaching retirement with insufficient savings and/or insufficient pension income from company pension plans.
  4. Increasing cost of living.
  5. The need for continued access to employer-sponsored health benefits.
  6. Finding the retirement lifestyle unfulfilling.

Pros of Working Longer

Improved Mental Health

The mental stimulation, physical activity and social engagement that you experience in your work environment can help to stave off chronic mental health issues sometimes associated with retirement.

Even unpleasant work may provide you with social interaction which you may find preferable to the social isolation commonly felt by retirees.

Financial Benefits

Being employed provides you with supplemental income in addition to government retirement benefits, retirement savings and pension income. This has been shown to be necessary for around half of post-retirement age workers.

Employer Health Benefits

As you age, you may increasingly be dependent on your employer-sponsored health insurance benefits which may lead you to maintain your employment..

Overall Feeling of Fulfilment

Like many, your job may provide satisfaction and fulfillment, and you may find that you are able to continue working well past the standard retirement age. Older employees increasingly prefer to ease into retirement than abruptly stop working.

Cons of Working Longer

There are also potential risks to working into your retirement years, with most of them being health-related. These largely depend on the type of work that you do and how you adjust to that work as you age. There are also risks to employers as the average workforce age increases.

Increased Health Risks

These may include physical strain, onset of chronic health issues, prolonged stress contributing to making minor health issues more serious, and mental health challenges related to stress.

Potential for Burnout

Older employees may be more susceptible to burnout due to extended working life. The risk may be compounded if the job lacks meaning.

Limited Opportunities for Younger Employees

With more employees working past retirement age, there may be fewer opportunities for younger workers to advance within the organization.

Stagnant Skillset

Older workers may struggle to keep up with rapidly changing technology and industry trends, leading to a skills gap.

An Alternative to Working Longer

As an alternative to working beyond your retirement age, consider investing in dividend-paying stocks. Dividend investing can be a great strategy to generate a regular stream of income to supplement any retirement benefits you may receive.

You can lean on income from dividend-paying stocks to help fund your retirement without touching your capital (i.e. your initial investment). Where possible, don’t wait until retirement to start investing in dividend-paying stocks as you may miss the opportunity to reinvest your dividends to increase your savings before retirement.

For over 25 years, Bloom has specialized in investing in income-generating investments, specifically dividend-paying stocks, which can help you generate income, if needed, and growth from investing in the stock market.

If you are looking for a personal investment management service that can help you generate income, if needed, and growth, contact us today. Call us at +1–416–861–9941 or email us at

This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.

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