Tag Archives: Retirement Career

Don’t Count on Working Longer to Save Enough for Retirement

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Don't Count on Working Longer to Save Enough for RetirementPeople consistently over-estimate their ability to work in retirement, and they don’t count on working longer to save enough for retirement. The basic assumption is that you will just continue doing what you are doing. Or perhaps take a retirement package. Maybe you will continue working on contract or even a new career. In fact many people actually accomplish this and work as long as they wish to. The sad fact is that the vast majority  end up with no job. Or working at low paying service jobs that barely provide for their needs in retirement.

Don’t Count on Working Longer to Save Enough for Retirement

A variety of situations can occur that get in the way of continuing to work during retirement. These include just not being able to find another job. This may be caused by sickness and poor health, lack of motivation and falling behind the curve of your industry. This later example happens to many people. They are out of the work force for a period of time. Then try to get back in only to find that technology, systems and processes s have passed them by. They are no longer current and they do not really have the inclination as well as the drive to keep up. As a result they are passed over for younger more up to date candidates.

Layoffs, down sizing, industry closings all lead to job changes at the very least and being out of work when you least expect it. Sickness in your family or yourself can also get in the way. What are consumers supposed to do to deal with these situations.

There are many solutions, some obvious some not so much. The one thing that is most important is to save for a rainy day and save for retirement. Plan to retire at age 50 and if you decide to work longer, that’s fine, at least you have the funds available to allow you to be flexible and enjoy life. Save as if you are going to retire young and also have a rainy day fund available for emergencies. If you cannot find a job, get sick or just do not feel like going to work, at least you can live comfortably.

Plan to Retire: Start a New Career

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Plan to Retire: Start a New CareerMany baby boomers retiring now and in the next 20 years. They are wondering what they are going to do with their time once they no longer have to go to work. For some it is a planned retirement others are pushed out due to downsizing or a reorganizing. Regardless of the reason it is time to take stock of their skills and their interests to plan the next stage of their lives. For some it will be finding another job or possibly starting a new career. This post is aimed at those people who plan to retire: start a new career.

Plan to Retire: Start a New Career

A friend of our family was forced to leave his company after a very productive and rewarding career prior to the time that he was planning to retire. His first few weeks were fine. He had lots of social engagements and projects to work on around the home. My friend had a mindset that he was really just on vacation. After the first couple of weeks this sense of vacation began to wear off. His wife who was also retired had her life established with lots of volunteer work and of course the grandchildren. This was not enough for him to keep him occupied and challenged. He really needed something more and began to cast around for ideas about what he could do next.

Challenging Activity

My friend needed to be challenged, he needed a purpose. He also wanted to be with people or talk to interesting people during the day. In effect he wanted a job that fit those conditions. He is not the type to take a part-time job working for Home Depot or something like that. My friend would like something that would really challenge him. Something that he could talk about to his friends. He settled on getting involved with a start-up company taking it from the ground up. It is consuming him at the moment. He is probably working just as hard as he did before retirement.

He is not being paid. His expenses are being covered and he will get stock options for his efforts. But deep down I don’t think he cares about being paid. He just needs something to do during the day and this has fit his requirements.

While starting a new career may not be for everyone, it is one option for those of us who are retiring and looking around for something to do in our spare time.

For lots more information about retirement planning, click here.

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Work After Retirement!

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Many of our friends are retiring now from the job they have worked at for manyWork After Retirement years. Some are planning to continue to work after retirement, while others are adamant that they will not work again. They want to enjoy life and forget about having to get up to go to work. Various surveys have been completed by a host of organizations and it turns out that the majority of  residents expect to work after retirement, primarily to stay mentally and socially active. Many people are retiring earlier than our parents and they need something to keep them alert and active. Following this approach will actually help them live longer as well.

Work After retirement – Never

One couple we know tell us that not only do they not want to work again, they do not miss any of their colleagues at work. Their social life and challenges they get will be more than enough to keep them active.  In fact he listed the things he is not going to miss while retired:

  • Getting up early to go to work
  • Commuting to work everyday
  • Meetings with people he does not respect
  • Working on projects that make no sense to him
  • Not having the time to pursue hobbies

Sounds a little sad but that is their opinion! They plan to travel a lot and see the world. Another golf’s 5 or 6 days a week and loves it. They go south in the fall so they can golf even more and spend the winter in California golfing. Too much golf for me, but everyone has to find something that they enjoy. Another friend of ours plans to work as long as he can. He says he would be totally bored at home and would probably drive his wife crazy. This is also a little sad since it implies that he has no hobbies or interests outside of work.

Work After Retirement – Surveys

Surveys we have read about people who plan to retire, indicate that seven-in-10 (70 per cent) plan to work during retirement, primarily to remain mentally (72 per cent) and socially (59 per cent) active. However, nearly half of consumers (44 per cent) expect to work after they officially retire out of financial necessity. This latter group has not saved sufficient funds for retirement and feel they must continue working during retirement.

Many residents, as much as a third of  residents think they will need between one and two million dollars to fund their retirement, while half (51 per cent) believe they will need less than a million dollars. The remaining  group of retirees feel that they need (16 per cent) two million dollars or more for their ideal retirement.

The amount of money that you need really depends on the life style that you plan to lead in retirement. New cars cost money as do many trips and visits to family. Expensive condos or vacation homes are also a factor. Many residents are finding that the plan to downsize is really not practical with builders pricing homes at a cost that does not make sense to a lot of seniors.

Sources of income for most residents are :

  • Registered retirement savings plans
  • Savings
  • Investments
  • Pension plans for some
  • Government benefit programs

If you are retired and reading this post, you have already started your retirement journey. You are in the process of making decisions to work or not to work. If you are still working, save as much as you can afford now so that you have options when you do retire.

Comments from anyone who has retired and your thoughts about what to do in retirement are appreciated. Our readers will enjoy the assistance you may be able to provide them about working after retirement.