Planning Your Un-Retirement

The Financial Freedom Studio welcomes Jean Chatzky—financial journalist, author and host of the HerMoney with Jean Chatzky podcast—for a series of articles on a modern approach to financial and life planning.

Many dream of retirement as a time to leave work behind—but plenty of retirees find that the desire to keep busy is more powerful than they imagined. 

Recently, I gave a talk with Ken Dychtwald, CEO of AgeWave and one of the country’s leading thinkers on aging. He travels the country for his work and meets a lot of retirees. Lately, he told me, he’s noticed an interesting phenomenon. He’ll ask people, “What are you doing?” They’ll answer, “I’m retired.” He’ll follow up, “So, what are you doing?” They’ll answer, “Well, I’m working.”

Yes, working. In retirement. According to research from AgeWave, nearly half of current retirees say they either are working or would like to be working. And nearly three-quarters of people in their 50s say they plan on following that same path. What’s behind this trend? Finances of course. Continuing to work – at least part-time – in retirement can bring in enough money that many people find they can put off tapping Social Security and withdrawing from their 401(k)s and other retirement accounts, allowing those balances to continue to grow.

But there are also other benefits. Research has shown continuing to work reduces isolation, leads to better physical and mental health, and gives you a sense of identity. It may even keep you alive. A study from Oregon State University found that healthy adults who worked past age 65 had an 11 percent lower risk of death from all causes than those who retired earlier. (Continuing to work even lowered the risk of dying in unhealthy adults, but by a smaller percentage.)

Read more at https://www.jackson.com/financialfreedomstudio/articles/2017/planning-your-un-retirement.html

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