Working In Retirement: What You Need To Know Now
It’s common to assume that once you’re retired, your working days are over. But that’s not always the case. Whether it’s financially necessary or just a way to stay busy, a lot of people end up with a post-retirement career.
If you think you’ll need or want to continue working to some degree after you retire, it’s important to start planning years ahead. Here are three different paths you can take for a post-retirement career—and important aspects of each that you’ll need to plan for.
For many, retirement is something that is eased into by dropping from full-time to part-time. If you want to continue working on a part-time basis, the first step is to understand how much income you’ll need. Can you afford to cut down on hours? Do you need the money or are you just trying to fill some free time? Make sure you have a clear understanding of your cash flow needs.
Changing from full-time to part-time will likely make you ineligible for employee benefits with your employer. Before you make the decision, look at the benefits you’re currently receiving. The most important consideration here is if you will continue to have health insurance. If you’re 65 and eligible for Medicare or married and on a spouse’s plan, this may not be an issue. But if losing your employee benefits leaves you uninsured, that could cause major financial or healthcare problems down the road.
Some people retire from a career only to start a new one. If you’re looking to start a new career at or near the traditional retirement age, keep in mind that getting hired later in life can be challenging. But that doesn’t mean you should be discouraged.
Start updating your skills through online courses or seminars, refresh your LinkedIn profile and, most importantly, start networking before you put in your notice. Line up a few possibilities well before you leave the security of your current position to make starting over an easier transition.
Becoming an entrepreneur.
If your Act 2 includes starting a business, there are a lot of steps you need to follow in order to be successful. Are you creating a true business entity? Do you need to register an LLC? Will you need start-up capital and, if so, how much?
Before you can dive into this new project, make sure you have relationships with bankers and lawyers and have the proper insurance coverage to protect you both personally and professionally. Sitting down with a coach or advisor to build out your business plan is also a great way to make sure you get started on the right foot.
Finally, being self-employed means being responsible for your own employee benefits, so look into retirement accounts such as the SEP IRA to continue saving for your future.
As I like to say, you’re never too old to figure out what you want to be when you grow up. If you’re looking for a post-retirement career, start the planning process early to make sure you know the full scope of what you’re taking on.
With the right prep, you can have a fulfilling and successful “retirement.” I wish you years of continued success!
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regards to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Brotman Financial Group, Inc. and BFG Financial Advisors are not affiliated with Kestra IS or Kestra AS.