Working After Retirement: What Are The Options?

While many people look forward to rest and relaxation in their post-retirement years, the prospect of leaving the world of work for good can sometimes be daunting – so much so that many people look into continuing working after retirement.

Retirement doesn’t always have to mean completely leaving the workforce, with many people choosing to continue working after retirement in some capacity, with ‘giving back’ being one of the key reasons for this. Some people choose to work part-time, freelance, as a consultant, or even volunteer or work for a charity.

So, if you’re retired or approaching that stage and you’re wondering ‘Can I work after retirement?’ the answer is yes, you absolutely can. Whether you’re striving to stay active in the workplace, try something new, discover new interests or simply keep your income topped up, there are plenty of flexible (and fun!) options if you’re at a loss for what to do after retirement.

What Are The Working After Retirement Rules In the UK?

In the UK, people who’ve reached the state pension age (currently this is 66 for both men and women) have the option to carry on working after retirement if they wish. However, there are certain rules and considerations to keep in mind when working post-retirement. Here’s everything you need to bear in mind when weighing up whether to keep working in your 60s, 70s or even beyond:

State Pension

If you’ve reached the state pension age, you can continue working after retirement while receiving your state pension. Bear in mind that the amount you earn may affect your ability to claim other benefits, such as council tax reduction, but your wages won’t affect the value of your state pension.

National Insurance Contributions

If you’re of state pension age or older, you are no longer required to pay National Insurance contributions on your earnings, which means your take-home pay will be a little higher if you do choose to keep working after retirement. Nice to know!

Income Tax

Your income from working post-retirement will still be subject to income tax. Keep HMRC up to date about your employment situation and make sure that your tax code is updated correctly to avoid being overtaxed and to reduce the risk of any unpleasant surprises landing on your doormat from the taxman.

Workplace Pensions

If you’re working after retirement age, your employer will still offer a workplace pension scheme for you to contribute to. You’ll have the choice to continue contributing to the pension scheme or to opt out if you prefer. Even when you’re in your 60s or 70s, working after retirement means you can keep growing your pension pot.

Pension Flexibility

The UK government introduced pension reforms in April 2015, which mean you have more flexibility in accessing your private pension savings. This means you can choose to access your pension pot while continuing to work after retirement, although tax implications and eligibility criteria will apply.

Working After Retirement Employment Rights

As an employee, you’re entitled to the same employment rights and protections as any other worker, regardless of your age or retirement status. This includes protection against discrimination, unfair dismissal, and other employment rights.

Hours and Terms

How many hours can you work after retirement? You can continue working full-time after the usual retirement age if you’d like to, but it’s more likely that you’ll be considering part-time, flexible, or temporary work. The terms of your employment, including working hours, pay, and benefits, should be agreed upon with your employer.

Benefits and Entitlements

Working after retirement may affect some of the means-tested benefits or entitlements you receive, such as pension credit or housing benefits.

It’s also important to bear in mind that the working after retirement rules and regulations do change from time to time. Stay up to date with HMRC and government guidelines, and speak to a financial advisor if you have specific questions about what’s best for you and your future.

6 Ideas for Working After Retirement

From consulting to teaching and from charity work to mentoring, there are so many options if you’re wondering what to do after retirement. Here are a few ideas:

1. Consulting

Consulting is a great option for retirees who have expertise and knowledge in a particular field. A lot of organisations bring consultants on board to train and guide their employees on projects. This is often short-term or contract work and it’s a great way to spread your knowledge far and wide, inspiring and influencing lots of different people along the way. It’s an ideal way to give something back to the sector you know inside out.

Retired professionals can use their years (or even decades) of experience to secure a consulting position. The best part of this role is that it can be done either part-time or on a project-by-project basis, giving you room for multiple consultancy positions at a time, or to spend on travel/family time/relaxing/all those other things retirement gives you time to enjoy.

2. Teaching or Tutoring

If you enjoy working with young people and want to help shape the next generation, you might want to consider teaching, tutoring or even lecturing part-time. You might want to try online tutoring via a platform like Coursera, or you might want to speak to local schools and colleges in your area to offer your services as a tutor or even as a careers counsellor for students.

3. Charity Work

Charities often have part-time paid positions on offer that could be ideal if you want to continue working after retirement while giving something back. Charities may need a hand with their marketing strategy, information technology or another area where you can offer expertise. For smaller charities, these may be unpaid, voluntary positions, but larger organisations may have paid positions available.

4. Volunteering

Taking on unpaid voluntary roles with charities allows you to feel like you’re carrying on working after retirement, while providing social interaction and a continued sense of purpose that you’re worried about missing. Many charities are in need of volunteers who can help fulfill certain social goals for the good of the community. Consider volunteering at your local food bank or charity shop, or challenge yourself to complete a sponsored challenge to keep yourself fit and active while giving something back.

5. House-Sitting

If you still have a sense of adventure and love to help others, house-sitting is a fun way to top up your income after retirement that lets you travel too. At the very least, you could get free accommodation in return for looking after someone’s house and potentially their pets too. At best, you have the pleasure of being able to explore a new area, make new furry friends…and potentially get paid for it. You have complete flexibility over your availability and can take on as much or as little work as you’d like, wherever you want to go. Continue working after retirement and the world could be your oyster.

6. Mentoring

Mentoring can be a fulfilling way for you to stay socially engaged, repurpose your skills and give back to your community post-retirement. It’s a brilliant chance to make money from selling the knowledge you’ve gained during your career.

How Can I Work As A Mentor After Retirement?

Mentoring, done correctly, is a mutually beneficial relationship between mentor and mentee. If you’re thinking about working after retirement as a mentor, here are a few things to consider:

1. Identify your area of expertise

Determine what professional and personal skills and experience you have that you could mentor someone in and identify who you’d like to mentor – students, professionals, business start-ups?

2. Define your mentoring goals

Decide what you want to get out of becoming a mentor and what your goals are. Do you want to help people advance their careers, provide guidance on specific skills, or even offer life coaching? Once you know what you want from being a mentor, you can shape your approach and find the right mentees.

3. Develop your mentor profile

Once you’ve decided that you’d like to work as a mentor after retirement, it’s time to start letting people know. It’s a good idea to update your LinkedIn profile and start building connections with people and platforms where you can find mentees (like Career Navig8r!).

4. Establish your mentoring schedule and boundaries

The beauty of continuing to work after retirement as a mentor is that you can set your own schedule, working as little or as much as you’d like. Decide on how you want to communicate with your mentees, how long for and your availability – boundaries are important.

5. Enhance your mentoring skills

By being the best mentor you can be, your mentees will benefit. Take time to do some research into effective mentoring techniques, communication strategies, and relationship building to help you understand and navigate any potential challenges with your future mentor-mentee partnerships. Read up on what makes a good mentor.

6. Start mentoring

Remember, being a mentor is a two-way learning process. Stay open to learning from your mentees and adapting your approach as needed. Your experience and wisdom can have a profound impact on others and mentoring can be a fulfilling way to contribute to people’s personal and professional growth.

What Are The Benefits of Working After Retirement As a Mentor?

Working after retirement as a mentor can bring several benefits, not just for the retiree but for those they mentor too. These benefits include:

Top Up Your Income

Working after retirement can contribute to your financial stability as you get older. Mentoring is a way to earn extra income while maintaining flexibility with your other post-retirement plans. You can mentor in the evenings or just for an hour here and there, meaning you’ll still have plenty of time for all those activities you’ve spent years looking forward to.

Stay Mentally Active

You’ve no doubt accumulated a wealth of knowledge and experience throughout your career, so it’s understandable if you don’t want to check out completely. Mentoring is a two-way street, providing mental stimulation as you engage with your mentee and share your experiences, while they can provide you with fresh perspectives, new technologies and innovative ideas. Check out our tips for mentoring Gen Z.

Maintain Social Connections

Often when people retire, the loss of social connections and working relationships can leave them feeling isolated. Mentoring provides you with the opportunity to establish new connections and maintain a sense of community, allowing you to stay socially engaged.

Find out more about the benefits of mentoring.

Become a Mentor Today

If you’re nearing retirement or have already retired and think mentoring might be the right option for you, sign up to be a mentor with Career Navig8r and help the next generation achieve success in their careers.

Retirement doesn’t have to be boring…but it can definitely be rewarding!