Question: I’m retired with $2.2 million in savings and work two retail shifts a week for fun. My young colleague just got her hours cut, and I don’t need the money. Should I quit so she can have my shifts?
Answer: There’s a reason so many people end up having to work in retirement.
The Social Security Administration puts the average monthly retirement benefit today at $2,012. Meanwhile, the median retirement savings among Americans ages 65 to 74 at just $200,000 as of 2022, the last year for which data are available.
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A $200,000 nest egg results in about $8,000 of annual income under the popular 4% rule. Combined with roughly $24,000 a year in Social Security, that’s not exactly living in luxury. And so it’s not surprising that in 2024, about 7% of the U.S. workforce was 65 and over, according to the Bureau of Labor Statistics.
But while some retirees may have no choice but to continue working part-time to supplement their Social Security benefits, others opt to work not because they have to, but because they want to.
T. Rowe Price found that while 48% of retirees who are working do so for financial reasons, 45% opt to work for the social and emotional benefits. And if you have plenty of retirement savings — say, $2.2 million worth — it wouldn’t be an unusual thing to work a couple of retail shifts a week to get out of the house and have something to do.
Unfortunately, though, today’s economy is taking a toll on retailers. Consumers are spending their money more cautiously to cope with stubborn inflation, and it’s forcing companies to rethink their staffing needs.
Retail companies announced 3,290 job cuts in November, according to data from Challenger, Gray & Christmas. And retail job cuts for the year were up 139% from 2024.
If you’re working a retail job for fun, but your young colleague who needs the money just lost some hours, you may be toying with the idea of quitting so that she can have your shifts and potentially avoid what could be a terrible loss of income.
It’s an extremely nice gesture on your part. But make sure to think things through before tendering your resignation.
Make sure your efforts won’t be for nothing
If you don’t need the money from your retail job and your colleague desperately does, quitting so she can have your shifts is a true act of kindness. But Chad Gammon, CFP and owner of Custom Fit Financial, says that before you do that, make sure your actions will lead to the outcome you’re hoping for.
“The scenario can be tricky and may not have the consequences you’re looking for,” he warns.
“First, you may rely on the non-financial aspects of the job that help your health. Second, you could quit and it doesn’t do anything to help the younger co-worker.”
Gammon suggests talking to management about the situation before quitting. If possible, ask outright if your resignation will allow your younger colleague to retain the hours they want. If not, there may not be a sense in you giving up a job you enjoy.
Remember, Gammon says, your retail job may be adding a lot of value to your life even if it isn’t financial in nature. You may be using your job to maintain social connections and get some exercise. Or, he says, you may like having a routine and structure. Before you give all of that up, make sure there’s an actual reason to do so.
You may have an easier time than your colleague finding other work
Let’s assume you’ve talked to your manager about giving up your shifts, and they’ve confirmed that those hours will, indeed, go to your younger colleague. In that case, Robert Jeter, CFP and founder at Back Bay Financial Planning & Investments, says that if you’re not too attached to the job, giving it up is probably not such a huge risk.
Fulfillment and social interaction from work are aspects that are commonly lost transitioning into retirement, he explains. However, he says, “If this individual has a deep background or professional expertise, they should be able to find other work.”
Also, if you don’t need the money your job provides and you’re doing it for social interaction, there may be other ways to stay busy, such as volunteering or joining a club.
If you do decide you’d rather be in a work environment, your $2.2 million in savings gives you the flexibility to take your time finding the right fit. This way, you’re doing an extremely nice thing to help a colleague you clearly care about.
“Giving back, whether it be time, talent, money, or generosity, is the real currency that I think becomes so valuable for affluent retirees,” Jeter explains. “I have zero doubts this individual would have regrets by helping out their colleague — and they would likely have zero issues finding other work that brings value.”