Continuing Work After Retirement – Uncovering Your Options
Life is a strange notion when you really think about it – we’re thrown into this world, forced to grow up and learn, work through most of our adult years, and then only really have full freedom during retirement. This is a pattern that absolutely everybody in the United States follows year after year.
Between the ages of 18 and 65, we work our lives away and try desperately to save enough money just to survive the last few years without work. From the moment we’re born, every step of our life is planned. Not the intricacies, like what job we’ll do, but the stages of our lives.
There are certainly exceptions to this rule, but it’s generally the path for Americans (and all others around the world!). However, we’re here to tell you that you can break free from the mold. If you don’t want this path, you don’t have to choose it.
Unfortunately, much of the financial world still supports this antiquated model. Back in the 1970s, we saw the introduction of employee-funded retirement plans, and this helped workers to save for retirement (while enjoying certain tax benefits). With big companies also offering pensions, this allowed workers to dream of a comfortable retirement with several sources of income.
The problem? Businesses lost motivation to invest in company pensions because the lower interest rates made them more expensive. Suddenly, we had access to 401(k), 403(b), and similar accounts. Despite the many benefits, there are too many ways to go wrong with a 401(k). Therefore, many people close to retirement don’t have the right savings because they didn’t fund their accounts well enough.
While those who chose an advanced strategy are now in good hands, those who made mistakes are struggling for retirement funds. Most workers around the United States hold on to the retirement dream, but it’s becoming less and less achievable. ‘Retirement’ is advertised as a necessity, a rule, but some people not only can’t afford it but don’t even want it.
You’ve probably guessed by the title of this guide, but you don’t need to conform to the traditional retirement model. If you don’t have great ambitions to stop working and sit around reading all day, you simply don’t need to do it. After years of being forced to work, there’s no reason why you can’t now choose to work. Only this time, you have more financial freedom, and this means choosing a job that makes you happy as you grow older.
While some choose to become a member of a board, others open a business or consult people in an industry with which they’re familiar. The IRS tells us that access to retirement accounts opens at 59 ½, but all retirement dates are arbitrary and don’t necessarily fit into the timeline of all workers.
Tips for a Faux Retirement
If you like the retirement approach where you don’t leave the world of work, here are some tips to make it happen:
Save sensibly into retirement accounts and speak with your advisor to set goals pertinent to YOUR life. Of course, remember that you cannot access these retirement accounts until specific points.
Make sure you have a backup plan – just because you want to continue working now, this doesn’t mean the feeling will last forever. Sadly, some people are let down by their bodies and simply cannot continue working.
Work in a job you enjoy and finally get the working freedom that we all deserve. Feel free to learn new skills, start a business, and enjoy the adventure.
With this strategy, you need to manage risk carefully. In other words, move capital into your accounts and balance all life and disability accounts. As long as you plan carefully and still save in case something goes wrong, there’s no reason why you can’t enjoy a non-retirement retirement.
Why not work part-time in a job you love while also getting some of the freedom of retirement? The earlier you commit to the idea, the longer you have to sit down with your advisor and make it work!
