We are revisiting what we mean by retirement, and it’s very clear that the definition of what people do even into their 70s is changing a lot, and people are continuing to work full time, continuing to work part time, and that has increased more for women than for men. There has been a big change in family structure, increases in divorce have left women more on their own, they may not be dependent on their husband’s pension or Social Security benefits, and of course women are living longer than men. So they have more need to think ahead to retirement.
Working in retirement
Based on over 40 years of experience, these are guidelines that a retirement expert uses for his own planning. Some key takeaways:
- Work until 70, but not necessarily at the same job.
- Develop sources of retirement income.
- Control living expenses.
- Take care of health.
- Protect against catastrophic health conditions.
- Stay socially engaged.
One option for making some extra money in retirement is to work as a real estate agent.
Many of Americans assume they’ll find a part-time job or start a consulting firm after they retire. Anthony Webb, the New York-based economist for the Center for Retirement Research notes that there’s a bit of self-delusion at work here.
“The truth is that when people leave their ‘lifestyle jobs’, they end up leaving the workforce pretty quickly,” Webb says. “It’s well documented that all the ‘bridge jobs’, the consulting gigs, the part-time work lasts perhaps a year or two, but not longer.”
Many people, as they approach retirement, think they have it all figured out. They should think again.
Misplaced confidence is common throughout life, but retirement is something else: People spend years—sometimes decades—planning for it. For many, there is a calendar with a date in the future on which they plan to punch out of work for the last time. Budgets are crafted, portfolio returns compounded and dreams take shape for how the money—and time—will be spent.
Sixty-five is no longer the magical age it once was, when you assumed you'd be able to retire and spend the rest of your life leisurely relaxing on a beach with your nest egg. For a number of reasons, from the economy to rising costs of healthcare and education, more and more post 50s are delaying retirement.
In fact, 82 percent of post 50s polled said they would continue to work for pay in retirement and nearly half said they'll retire later than they expected, according to an Associated Press-NORC Center for Public Affairs Research poll released this month.
Many people are interested in gradually transitioning into retirement. A great way to semi-retire is to pursue hobbies that can also bring in some cash. These hobbies have often already been a part of your life for decades before you retire. Here are eight hobbies that can generate some income both before and during retirement:
It seems like another life. At the height of his corporate career, Tom Palome was pulling in a salary in the low six-figures and flying first class on business trips to Europe. Today, the 77-year-old former vice president of marketing for Oral-B juggles two part-time jobs: one as a $10-an-hour food demonstrator at Sam’s Club, the other flipping burgers and serving drinks at a golf club grill for slightly more than minimum wage.
Many couples dream of being joined at the hip when they're no longer working. A more satisfying approach may be 'parallel play.'
A growing market for fellowships that targets older workers connects private-sector expertise with nonprofits in need of help. Millions of baby boomers, like Diao, don't want or can't afford to check out of the workforce at age 65. And many are seeking a transition into work that has a social impact. The San Francisco-based Encore.org helps older workers make that transition by pairing them with nonprofits in need of their private-sector expertise for a fellowship year.