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Many people are returning to work—some because they want to, some because they have to. Unlimited leisure time. An end to office politics. Freedom to travel. What’s not to like about being retired? Regardless of the perks, for many, leaving the workplace is more difficult than they ever imagined. Garry Shea and Molly Harley, financial consultants for the D.A. Davidson & Co. office in Spokane, say it’s increasingly common to see retirees return to the work force in some manner. In the majority of cases, they return to full- or part-time employment for economic reasons. Others are bored and simply flunk retirement.
Many people are returning to work—some because they want to, some because they have to. Unlimited leisure time. An end to office politics. Freedom to travel. What’s not to like about being retired? Regardless of the perks, for many, leaving the workplace is more difficult than they ever imagined. Garry Shea and Molly Harley, financial consultants for the D.A. Davidson & Co. office in Spokane, say it’s increasingly common to see retirees return to the work force in some manner. In the majority of cases, they return to full- or part-time employment for economic reasons. Others are bored and simply flunk retirement.
Mike Golden, who retired as a cardiologist for the first time four years ago after nearly three decades in practice, says, “It was kind of interesting for a week. I was kind of bored, really.” Golden did find that he enjoyed having more time to spend with his wife and family and the freedom to travel. “But after a while, as things become routine and fall into place, they become mundane,” Golden explains. “You can only play so much tennis, ski and windsurf.” Then one day, Golden received a phone call from someone looking for a cardiologist and decided to take a break from retired life to work on a locum tenens, or temporary, basis. “It gives me the flexibility to say no to a job,” Golden says. A locum tenens company places Golden in temporary assignments ranging from one week to three months. His most exotic job landed him and his wife, Kathy, in Tauranga, New Zealand, where he spent three months working and another month traveling. Experiencing the New Zealand medical system firsthand offered him a startling perspective on the practice of medicine. Health care in that country is rationed among the elderly in order to conserve medical resources for the young, according to Golden. The experience was at times gut-wrenching and gave him a newfound appreciation for the way medicine is practiced here at home. For many, the transition from work to retirement has emotional, physical and financial implications, with the latter being the most difficult aspect for many retirees to address adequately. Harley says the psychological aspect of going from being somebody at work to being retired can be dealt with much easier than struggling financially. People can easily underestimate the cost of living for a retirement period that could span decades, Harley notes. If they jump out of the work force when they’re still young and healthy enough to continue working, they’ll have a lot less to tide them over in retirement. The impact of working two to three more years and contributing to a 401(k) instead of withdrawing from it can make a huge difference, she says. Barbara Bantam, who retired as the manager of Apple Valley Credit Union in 2002 and now works part time in Wenatchee for Numerica Credit Union, faced devastating emotional and financial challenges when she left work the first time at age 66. Both Bantam and her husband embraced retirement with excitement and anticipation, and they planned to travel. “It was fun not having to go to work. But the fun part lasted only 90 days,” Bantam says. Her husband had a stroke and has lived for the past five years in a nursing home. A year after her husband’s stroke, Bantam’s doctor encouraged her to return to work where she could be busy and enjoy the support of other professionals. Her husband’s doctor concurred and said Bantam’s husband would progress more quickly if she weren’t doing so much for him at the nursing home. As a financial professional, Bantam observes how well others have prepared for retirement and concludes that many of her peers have not saved enough. She emphasizes that it’s important to start saving early and to secure long term care insurance. “I was absolutely blown away when I found out how much nursing-home care costs, and at $7,000 per month, it goes really fast,” Bantam says. “It’s been difficult, but I have endured because of my job and the people I surround myself with. I told John, the branch manager, he’s going to have to lock the door behind me because I don’t plan to retire again.” Shea and Harley agree that medical costs, which exceed the rate of inflation by a wide margin, can quickly derail one’s retirement. “If you haven’t planned and built up emergency reserves, you’re seriously damaged,” Shea says. Les and Sue Stierwalt know about medical costs in retirement. The couple retired the first time in 2001, and four years later sold everything to become full-time RVers. Then Sue was diagnosed with cancer, and although they had catastrophic health insurance coverage, their out-of-pocket expenses totaled about $15,000. Last year, the Stierwalts both went back to work on a part-time basis for Spokane Teachers Credit Union, which is based in Liberty Lake and has offices in Eastern Washington and North Idaho. According to Les, having health care insurance was a major consideration. Their employer offers benefits for employees who work at least 20 hours per week. The Stierwalts find their current work arrangement suits them very well. “We love our jobs, and it’s a really good deal for us,” he says. On reflection, Les says that perhaps he was too young, at age 50, to retire fully and that he and his wife should spend a few more years working and putting more money away. Adds Sue, “We’re going to stay put for a while.”
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