Retired, But Not the Retiring Type

not retiring type

not retiring typeFor today’s generation of people who are nearing retirement or already there, the decision about whether to keep working isn’t as clear-cut as with prior generations. We live in an era where working during retirement is a viable option for people into their 60s, 70s and beyond, as findings from a 2013 study conducted by the Associated Press-NORC Center for Public Affairs Research make clear.

The study found that 8% of people 65 or older are working in retirement now. Meanwhile, among those who are working and not yet retired, 47% said it is very or extremely likely they will work for pay to some extent; another 35% said it is somewhat likely.

Just because a person has formally “retired” doesn’t mean they lose their ability to make money. Indeed, working during retirement makes sense for a number of reasons. It gives a person the means to cover necessary expenses. It provides cash flow to supplement one’s lifestyle for luxury pursuits – trips, second homes, etc. It provides a way for people to serve or give back to a community, and to stay connected to their sense of self-worth. And it gives them a means to stay active and keep extra cash flowing into the household. There are a lot of options and alternatives for earning money during retirement. Ultimately, it’s a matter of a person’s comfort level and need.

Factors to consider in weighing post-retirement work options include:

  • How much money you need or want to earn
  • The kind of work you’re comfortable (and capable of) doing – mental or physical, in a new field or one in which you’re experienced
  • Your schedule – the amount of time you’re able to dedicate to working, and the flexibility of your schedule
  • Venue and environment — do you prefer working in an office, out in the field, or on your own?

Depending on how you answer these questions, the options for earning an income are numerous and varied. Here are some to consider:

Contract employee: Here’s a chance to continue using the skills developed prior to retirement, as a part-time contractor in a field in which you have experience. A lot of companies are looking for part-timers, because they not only have experience in the field, they’re off the payroll and don’t have to be given health insurance. Part-time older workers also make sense because frankly, they tend to be more dependable.

Retail: Some people prefer a job that provides interaction with the public, in a store that matches their interests. Have a passion for golf? Work in the pro shop. Like clothes? Get a job at a clothing retailer.

Consulting: Earn money by leveraging experience and expertise in a given field. Used to run a restaurant? Market yourself as a restaurant consultant.

Board member: Another way to put business experience to constructive use while earning money in the process.

Teaching: A way to pass on wisdom and knowledge to others. Many community colleges and career colleges look for retired professionals to teach specific skills, vocations and businesses.

Get training for a new profession or learn a trade: People who want a change of pace can learn a new trade or profession (via a career or community college, for example), then take those new skills into the job market.

Turn arts/crafts skills into income: Have a flair for painting, pottery, sewing or some other creative talent to turn out goods people want to buy? Here’s your chance to market your creations.

Start a business: Scratch that entrepreneurial itch by developing a business concept of your own (potentially financially risky) or investing in a franchise that you can run with only a part-time work commitment (perhaps less risky).

As enticing as some of those options may seem, working during retirement isn’t without its potential downsides. For one, it can be physically and mentally tiring. It can limit the flexibility you have for other priorities like travel and family. And it may not be exactly the type of work you desire, nor exactly how you want to be spending your time.

But whether you need to work or just want to work during retirement, at least you’ll have choices.


Note: The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendation for any individual. Please remember that past performance of investments may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this newsletter (article), will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this post serves as the receipt of, or as a substitute for, personalized investment advice from Vermillion Financial Advisors, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed within this newsletter to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of our current written disclosure statement discussing our advisory services and fees is available for review upon request.

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