Many retirees have blind spots that could prevent them from seeing why it might make sense to get back to work, at least part time
A tight labor market and flexible work options in the gig economy would seem to make re-entering the job market an enticing prospect for retirees. And many are doing just that.

But behavioral economics tells us that there are likely a lot more retirees who would return to the workforce, if only they weren’t held back by cognitive blind spots. These blind spots cause them to ignore the possibility of returning to the workforce—even if working at least part time would make them more satisfied and financially better off.

Are you one of those people? The following self-assessments can help you measure your own vulnerability to these blind spots, and whether you should consider returning to the labor market and try a part-time job.

The value of spare time
Let’s start with a pair of questions on consumer behavior, adapted from research by the behavioral economist Ofer Azar, that measures your willingness to trade time for various discounts:



You found a pen you like for $3. You hear that it is on sale at another store, 20 minutes away. How much cheaper would the pen have to be for you to drive to the other store?

50 cents cheaper
$1 cheaper
$2 cheaper
I wouldn’t make the drive if it was free
You found a shirt you like for $30. You hear that it is on sale at another store, 20 minutes away. How much cheaper would the shirt have to be for you to drive to the other store?

​$5 cheaper
​$10 cheaper
$20 cheaper
​I wouldn’t make the drive even if it was free
The size of the discount you were willing to drive for can help determine how you value your time. For instance, if you’re willing to drive 20 minutes to save $2 on a pen, then you value your time at roughly $6 an hour. That’s less than half of the minimum wage in most states. If you’re willing to drive 20 minutes to save $10 on a shirt, then you value your time at roughly $30 an hour. That might sound like a lot. But consider that, for example, the typical hourly rate for a dog walker on the pet-services site Rover in my neighborhood is $40 an hour.

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Would you consider returning to work at least part-time? Why or why not? Join the conversation below.

Time is an asset. Unfortunately, undervaluing your time might also make you less likely to work, since you fail to consider the ways that your time could become a source of income. Retirees who undervalue their time should consider ways that part-time work can translate into real income. Instead of making multiple 20-minute trips to save $30, you might enjoy taking a long walk with a dog that earns you $40. You’re $10 ahead, and you get some exercise.

The power of semiretirement
Here’s the next set of questions, which are drawn from research on dichotomous thinking by psychologist Atsushi Oshio. To what extent do you agree with the following statements?

There are only winners and losers in this world.

Strongly disagree
Disagree
Neutral
Agree
Strongly agree
I want to clearly distinguish between what is safe and what is dangerous.

Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Information should be defined as either true or false.

Strongly disagree
Disagree
Neutral
Agree
Strongly agree
These questions are designed to measure your “binary bias,” which is the tendency to see the world in black-and-white terms. In the 20th century, retirement was mostly a binary choice: You worked full time or you didn’t work at all. There were limited opportunities for retirees to work part time. Now, the gig economy offers older individuals a range of work options, in terms of both the work itself and the number of hours you can work.

Unfortunately, too many older individuals are still stuck in the 20th-century work mind-set. If you answered “Agree” or “Strongly agree” to the questions above, your binary bias might lead you to neglect part-time work opportunities that can boost both your income and your overall well-being. For retirees looking to overcome this bias, it might be helpful to start off small: Look for a paid activity that you only need to do once a week, or an hour or two a day. By starting off this way, you are more likely to stop viewing working as an all-or-nothing option.



Test-driving your retirement
Here is the last question, which draws from psychological research on our assumptions about happiness.

Imagine someone similar to you in age and personality. Do you think this person would be more satisfied with their life if they lived in the Midwest or California?

Midwest
California
Same
This question measures your susceptibility to the “focusing illusion,” which is the tendency to overweight obvious differences between your present and future life. People may assume that, if they moved to a sunny climate like California’s, they would be much happier. No more shoveling snow.

Such an assumption might seem reasonable. However, research by behavioral scientists suggests that our predictions of future happiness are often wrong. In a survey of nearly 2000 undergraduates by David Schkade and Nobel laureate Daniel Kahneman, they found that college students in the Midwest and California were equally satisfied with their lives, despite the fact that a majority assumed students in California would be more satisfied. The weather in California really is better. It is just that good weather doesn’t make us happy.



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New retirees sometimes make a similar discovery about their own happiness. Some people realize that days filled with leisure time aren’t ideal, after all. They miss the routine and camaraderie of work. So if you thought someone like you would be more satisfied in California, you should take extra care to update your retirement plans based on what actually makes you happy.

To discover what makes you happy, you might want to try new kinds or work. Many retired police officers, for instance, work part time as security guards. But they might be happier with a completely different gig that is not tethered to their past career—and the expectations and feelings that are tied to it. They could instead try, say, tutoring students or managing an Airbnb.

Taken together, these questions can help retirees think more effectively about whether to return to the workforce in some fashion. In the past, it was extremely difficult for people to test-drive different kinds of work in retirement. They were generally limited to the kind of job they’d had before, based on their previous work knowledge and experience. Now, retirees can experiment with gig-economy tasks tailored to their interests.

Of course, some retirees will still continue to enjoy an old-fashioned retirement, in which they leave the world of work fully behind. But many will benefit from embracing the work opportunities that are now available.

George Fraser, managing director at the Fraser Group at RBG, contributed to this article. Dr. Benartzi (@shlomobenartzi) is a professor and co-head of the behavioral decision-making group at UCLA Anderson School of Management and a frequent contributor to Journal Reports. Email him at reports@wsj.com.

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You said it: Time is an asset. Unless it’s your only way to avoid subsisting on bread and water, I doubt many people on their deathbed will be saying, “Gee, I wish I’d spent more time working.”

I'd planned on working until the end of this year, but pulled the ripcord at the end of last year. My time was too valuable to be yanked around in a badly understaffed situation for mediocre pay. Ironically, I had been requesting part-time every bid cycle for the previous year, but they did not award it to anyone, which led to me quitting instead. They could have had some of my time but instead they got none of it. Had they awarded me part time I might have stayed several more years because I enjoy flying (but dislike everything else about the job).

Retirement isn't simply about maximizing $$$, it is about maximizing the diminishing time remaining. We know too many people who either died before retiring or developed a significant health issue which ruined their retirement.

I have my answer. Unless it is something I want to do it’s not happening at this stage of life.

Not going to hear me say “Would you like fries with that order sir?”

It’s about fulfillment at this stage of the game. My last part time job was about 65 miles round trip, I could have made the same amount of money working retail here locally if that is all that I wanted and needed. If it had not been for an ownership change I’d still be there, my decision to leave, their philosophy differs from mine.

There's more to the equation than just the value of spare time. Cost of making such trips (fuel, etc.) for alleged bargains?

And what about work enjoyment or lack thereof? The ever so hard to weigh health impact?

No way in hell would I expose myself to the stress of any level working again. I've had two careers thank you very much and find that eminently sufficient for me. I'd sooner eat a diet of ramen noodles or beans and rice first than go to work again!

I retired for a couple of reasons, the biggest of which was so I didn't have to go to work.

I'll pass on going back.

I retired last August and went back to work at my same job for the same pay a month later.
It was planned that way because I wasn't sure how I would make out financially.

It turns out I didn't need the extra money, but it's great having it in light of the way the economy is going.
I always loved my work, but doing it only two days a week with all the pressure gone is awesome.

The last time the Dems killed the economy (thanks, Jamie Gorelick!), I went back to work full time for six years, because I had no idea what was going to happen to our retirement.
It turned out great, but that's because it was the best cardiology job I'd ever had--paid best, and had most appreciation, and it was Maui.
It made the difference between being OK in retirement and being well set (until now, that is).

However: I had no idea what kind of stress I was under until it stopped. I couldn't go back now (well I'm almost 78!).

What made me decide to stop working was when I looked at my finances and figured out that I can swing not having to work any more.

I showed my numbers to a couple of financial people and they agreed.

I like one youtube channel's motto: "You don't need more money; you need a better plan."

The 2 more important assets in life are Time and Health.

Screw the money. Money is important, of course, but it's worthless if you don't have Health and thus Time.

Take care of your Health and enjoy the Time you have.
.

One more vote for "No way, no how."

I've (briefly) considered going back part time, but most if not all of the part time jobs available are retail and I have proven repeatedly that retail is not a good fit for me.

As others have mentioned, time is WAY more important than money at this stage. Particularly nice weather time which is when most part time jobs are available.

I have been retired for 6 years.

I found out I am really good at doing nothing. I spent all day today doing nothing, and I am not done yet. Tomorrow I am going to keep doing nothing until I have nothing to do.

I can't imagine going back to work. I am too busy.

It sure is pretty this time of year.

I should have quit while I was ahead, far sooner than I finally did...

Most damn fool question I've heard recently, or maybe ever. But really, I'm still working. Part of one day every other week. And it pays well. Its the icing on the cake.

[quote]Most damn fool question I've heard recently, or maybe ever[/quote
^^^^^^^^^^^^^^^
Well spoken Resident Curmudgeon!

It's one thing to work in retirement for the purpose of making money, whatever value you place on your time, vs. working to stay busy, engaged in something you enjoy, being social, etc.

I would have to be starving and homeless, to even think about working again!

I love being retired, worked my whole damn life to be able to retire.

Words like “Wife,” “Golf,” and about five others are far more appealing than the word “Work.”