Retire or Re-wire? The Surprising Reality of Post-Retirement Work for Washington's Public Servants

Imagine this: After 30 years of dedicated service to the state of Washington, you're ready to trade your office chair for a beach chair. But wait – what if retirement isn't quite what you expected? What if there's another way to enjoy your golden years while still making a difference?

Welcome to the crossroads faced by many Washington public employees. The decision to work after retirement isn't just about padding your bank account – it's about redefining what retirement means to you.

The Great Expectation Gap
Here's a truth bomb: Many of us imagine retirement as an endless vacation. But for a significant number of retirees, reality looks quite different. While 68% of workers expect to keep working in retirement, only about 31% actually do. Why? Let's dive into the realities of post-retirement work in the Evergreen State.

The Washington State Retirement Landscape
As a Washington public employee, you're part of a unique system. Whether you're in PERS, TRS, SERS, LEOFF, or WSPRS, your pension is a valuable asset. But did you know that returning to work could impact your benefits? Let's break it down:

1. The 867-Hour Rule: In many cases, you can work up to 867 hours per year without affecting your pension. But exceed that, and you might see some changes. There are some new exceptions where you may be able to return to work up to 1,040 hours so be sure to check out those out.
2. The Waiting Game: Most plans require you to wait at least 30 days after retirement before returning to a public service job.
3. The Pension Pause: In some cases, your pension payments might be put on hold if you return to full-time work.

Understanding these rules is crucial. Check out the exact rules of your plan at drs.wa.gov. After all, you've earned your pension – you want to make sure you're not accidentally leaving money on the table!

The Pros: Why Some Washingtonians Choose to Work

1. Financial Flexibility: Let's face it – a little extra cash never hurts. Whether it's for travel, spoiling the grandkids, or just peace of mind, working can provide that financial cushion. In Washington, where the cost of living can be high, especially in areas like Seattle or Bellevue, this extra income can make a significant difference.
2. Mental Stimulation: From the tech hubs of Seattle to the agricultural centers of Eastern Washington, our state offers diverse opportunities to keep your mind sharp. Some studies even suggest that working in retirement might lower the risk of cognitive decline. Imagine using your years of experience in a new field, like contributing to Washington's booming tech industry or helping in the state's renowned wine production.
3. Social Connection: Miss the water cooler chats? Many retirees find that work provides a valuable social network, which can contribute to better retirement adjustment. In a state known for its "Seattle Freeze," maintaining social connections can be particularly important.
4. Sense of Purpose: After years of public service, many find it hard to step away completely. Part-time or volunteer work can offer a continued sense of contribution. Washington's strong culture of community service provides numerous opportunities to stay engaged and make a difference.

The Cons: Why Some Choose to Fully Retire

1. Time Constraints: Want the freedom to explore Olympic National Park on a whim? Full retirement might be more your speed. Many retirees struggle to balance work with leisure activities and family time. In a state with so much natural beauty, from the San Juan Islands to Mount Rainier, having the time to explore can be a major draw of full retirement.
2. Stress Reduction: After years of dedicated service, some prefer to leave work stress behind. Continued employment can sometimes negatively impact retirement satisfaction. The relaxed Pacific Northwest lifestyle might be calling your name.
3. Health Considerations: Let's be real – some jobs can be physically demanding. Retirement might be the break your body needs, as physical job demands can be a significant barrier to working in later life. Plus, with Washington's emphasis on outdoor activities and healthy living, you might want more time to focus on your wellbeing.
4. Pursuit of Passions: Always wanted to write a novel, master the art of Washington wine making, or become a master gardener? Retirement could be your chance. Washington's rich cultural scene and natural environment offer endless possibilities for new hobbies and interests.

​Real Talk: Navigating the Decision
Here's the deal: There's no one-size-fits-all answer. Your retirement should be as unique as Washington's landscape.

Here are some questions to ponder:

1. What does your ideal day look like?
2. How's your financial picture? (Be honest!)
3. What gets you excited to get out of bed in the morning?
4. How's your health, and how might it change?

The Re-Wire Options: Washington's Opportunities

If you're leaning towards the "re-wire" option, Washington offers a smorgasbord of opportunities. According to the Washington State Employment Security Department, sectors with high demand for experienced workers include education, healthcare, and professional services. Let's explore some options:

1. Education: From community colleges to universities, your expertise could shape the next generation. Washington's commitment to education makes this a particularly rewarding field.
2. Consulting: Your years of public service have given you valuable insights. Why not share them? Washington's diverse economy, from aerospace to agriculture, offers numerous consulting opportunities.
3. Non-profit work: Washington's thriving non-profit sector could benefit from your skills. From environmental conservation to social services, there's likely a cause that aligns with your passions.
4. Seasonal work: From the Skagit Valley Tulip Festival to the Leavenworth Christmas Lighting Festival, seasonal opportunities abound. These roles can provide income and engagement without a year-round commitment.
5. State Parks: Love the outdoors? Consider a role in our beautiful state park system. Imagine spending your days helping others enjoy Washington's natural wonders.
6. Tech Industry: Even if you're not a coder, many tech companies value experienced professionals in areas like project management, human resources, or customer relations.
7. Wineries and Breweries: Washington's wine and craft beer industries are booming. Your organizational skills could be valuable in tasting rooms or event planning.

Financial Considerations: Beyond the Paycheck
If you're considering working in retirement, it's important to understand how it might affect your overall financial picture:

1. Social Security: If you claim benefits early (before your full retirement age) and continue working, you might face benefit reductions. In 2024, if you're under full retirement age, your benefits will be reduced by $1 for every $2 you earn above $22,320.
2. Taxes: Additional income could potentially push you into a higher tax bracket. Be sure to consider the net benefit of working after accounting for taxes.
3. Healthcare Costs: If you're relying on Medicare, be aware that higher income can lead to higher premiums for Parts B and D.
4. Pension Maximization: For some, working a few extra years can significantly increase their pension benefits. It's worth calculating the long-term impact of working longer versus retiring earlier.

Staying Sharp: Lifelong Learning in Washington
Whether you choose to work or not, continuing to learn and grow can be a fulfilling part of retirement. Washington offers numerous opportunities for lifelong learning:

1. Osher Lifelong Learning Institute: The University of Washington offers this program for adults over 50, with a wide range of non-credit courses.
2. Community Colleges: Many of Washington's community colleges offer reduced or waived tuition for seniors.
3. Senior Centers: Local senior centers often provide classes and workshops on various topics.
4. Online Learning: Platforms like Coursera and edX offer courses from top universities, many of which you can audit for free.

​The Bottom Line: Your Retirement, Your Rules
Here's the truth: Whether you choose to retire fully or "re-wire" with post-retirement work, there's no wrong answer.

The key is to make an informed decision that aligns with your goals, values, and circumstances.

Remember, your years of service to Washington have earned you the right to shape this next chapter on your terms.

Whether you're dreaming of sailing the Puget Sound, volunteering in your community, or taking on a new professional challenge, the choice is yours.

Planning for Success: Your Next Steps

1. Assess Your Finances: Take a close look at your pension, savings, and expected expenses in retirement.
2. Explore Your Passions: What have you always wanted to do but never had the time for?
3. Talk to Your Loved Ones: Discuss your plans with family – their support can be crucial.
4. Stay Informed: Keep up with changes in retirement laws and opportunities in Washington.
5. Consider a Trial Run: If possible, try out your preferred retirement lifestyle before making a final decision.

So, Washington public servants, what will it be? Will you retire or re-wire? The adventure awaits – and it's yours to define.

P.S. Navigating the specifics of your pension and the implications of post-retirement work can be complex. While this information provides a starting point, it's always a good idea to consult with a financial advisor who specializes in Washington State public employee retirement. They can help you crunch the numbers and understand the specifics of your unique situation. After all, you've worked hard for your retirement – make sure you're making the most of it!

-Seth Deal