Why Working Past Retirement Might Be One of the Best Financial Moves You Make

Retirement is no longer a fixed milestone but an evolving journey that blends purpose, flexibility, and financial confidence. For many, continuing to work beyond the traditional retirement age is not just a necessity but a choice that brings meaningful personal fulfilment and greater financial resilience.

Retirement is Evolving, and the Numbers Show It

Globally, more people are working into their 60s and 70s than ever before. In the United States, data from the U.S. Bureau of Labor Statistics shows that labour force participation among those aged 65 to 74 is projected to reach nearly 30% by 2031, up from just 19% in 2001. For those aged 75 and older, participation is expected to climb to over 11%, more than double what it was two decades ago.

A similar trend is emerging in Hong Kong. According to the Census and Statistics Department, the labour force participation rate for those aged 65 and above has increased by more than 60% over the past decade. With people living longer and the cost of living on the rise, many are rethinking what retirement should look like.

Importantly, it’s not just about money. Many individuals continue working because they enjoy it. They value the structure, social engagement, and sense of purpose that meaningful work provides.

The Upside of Working Longer

1. A Stronger Sense of Purpose
Retirement can sometimes feel more like a loss of identity than a reward for decades of work. Remaining professionally active, even in a reduced capacity, can restore a sense of meaning and self-worth.

2. More Financial Flexibility
Every additional year of work can significantly improve long-term financial outcomes. It allows more time to save, delays the need to draw on investments or pensions, and can increase eventual retirement benefits. In high-cost cities like Hong Kong, this added flexibility can make a substantial difference.

3. Better Health and Well-being
Multiple studies suggest a correlation between continued work and improved cognitive and physical health. One study conducted by the Harvard Business review found that working even just one additional year beyond retirement age was associated with a 9% lower risk of mortality.

But It’s Not the Right Choice for Everyone

While working longer has clear benefits, it’s not suitable for everyone. Health limitations, caregiving responsibilities, or simply a desire for more personal time may lead individuals to retire earlier, and that’s perfectly valid.

Older professionals may also face age-related bias in the workforce, or find it challenging to re-enter their industry after time away. This is why the focus should be on flexibility, not fixed rules.

A New Definition of Retirement

Rather than seeing retirement as an on-off switch, many are embracing it as a gradual transition. Consulting, part-time work, mentoring, or launching a side project can all offer purpose, engagement, and financial benefit, without the demands of a full-time role.

Here are a few things to consider:

• Explore Flexible Work Options: Contract, freelance or advisory roles offer engagement on your terms.
• Keep Learning: Upskilling or exploring new interests can open fresh opportunities.
• Align Your Financial Plan: Your financial strategy should evolve with your lifestyle and goals.
• Prioritise Your Health: Physical and mental well-being are vital assets in later life.

Final Thoughts: Retirement on Your Terms

Choosing to work longer isn’t about delaying retirement, it’s about redefining it. The rewards can be substantial, from greater financial stability to improved well-being.

The key is to build a plan that supports your goals, not someone else’s timeline.

If you’re considering how continued work could support your financial future or lifestyle, we’re here to help. Let’s build a retirement plan that works for you.

Get in touch to start a conversation today. Contact Us