#Talking #Clients #Working #Retirement
When Serena Williams “retired” from tennis in 2022, she did so with an appearance on the cover of Vogue. Notably, she mentioned that she doesn’t like the word “retirement” and refers to her transition as an “evolution.” This opinion perfectly sums up the way I often talk to my clients about the concept of retirement.
For the Baby Boomer generation, the transition to retirement meant dinner, a gold watch, and a calendar wide open. For those of us in Generation X and beyond, this binary definition of retirement no longer holds true. Dozens of things have changed, from the dwindling availability of pensions to the fact that retirement can now extend for 30 years or more. Consequently, many of us who are working now will approach retirement very differently.
Key takeaways
- Retirement is now a flexible concept, allowing to continue working or obtain new jobs, especially for younger generations.
- Staying in the workforce can enhance mental health and provide purpose and community.
- Start by defining what you want from ongoing work—structure, social connections, or financial benefits—to guide your choices.
- Consider limitations and financial implications when exploring business options.
What I tell my clients
I have always encouraged my clients to think about retirement differently and consider the option of continuing to work in some capacity. Studies have indicated that retirement can affect health as well.
According to the American Psychological Association, some middle-aged and older adults, especially women, who tend to disengage from challenging tasks and goals after retirement may be at greater risk for cognitive decline.
Staying in the workforce, even if it’s a part-time or unskilled role, can have significant benefits for our mental health and cognitive abilities. A sense of purpose goes a long way for our mental health.
Moreover, earning extra income is very beneficial financially. Since many people’s retirement now spans several decades, bringing in a small amount of income and withdrawing a smaller amount from your investment portfolio can provide a lot of peace of mind.
If you’re considering working after retirement, here are some questions to consider:
1. What are you trying to achieve by continuing to work?
Do you crave order and routine? The social aspect? Clarifying your purpose will help you decide exactly what type of role you should pursue.
2. What limitations do you face?
Many of us will experience some physical limitations as we explore new work options (such as not being able to stay on our feet all day) or preferring to work at certain times of the day, shorter shifts, or closer to our homes. Be thoughtful when you think about what it will be like to step into something different.
3. Explore possible career options
Talking to friends, asking about jobs at some of your favorite local businesses, trying out volunteer work or all sorts of great firsts. Collect data, but don’t let it hold you back for too long. There’s no harm in trying something and finding out it’s not for you.
4. Consider the financial implications
How will you handle the extra income? Will it enable you to withdraw smaller amounts from your other accounts? Or will you use it to fund a hobby or other specific expense? Have a clear expectation about whether your income will impact Social Security benefits and Medicare premiums if you qualify and participate in these programs.
Bottom line
The post-retirement work possibilities are endless, and there is no “one size fits all.” Reimagining retirement as an evolution rather than an endpoint opens a world of possibilities. By embracing flexible work options and prioritizing personal goals, individuals can maintain fulfilling and purposeful lives that go beyond traditional expectations.
#Talking #Clients #Working #Retirement
