Professional employees in their 50s and 60s are starting to think more strategically about retirement. Not just about how to pay for it, but how they’ll spend their time once they get there.
For some, that means they’d like to keep doing what they’re doing — just not quite so much of it. According to one survey, 80 percent of workers in their 50s and up indicate an interest in staying in the workforce past their planned retirement date if they could scale back their hours and responsibilities.
Take Steve Norwitz, for example. After 38 years working in media relations at T. Rowe Price, he took a 25 percent pay cut in exchange for just over three months’ vacation time each year. Now, at age 68, in between the special projects he manages for the company, Steve and his wife have traveled to Ecuador, China and Slovenia and taken a river cruise down the Rhine.
When he’s home, Steve’s happily engaged at work and out of his wife’s hair. It’s a win-win, not only for the couple, but also for his company that benefits from his same experience for a much lower price.
[CLICK HERE to read the article, “Facing Retirement, but Easing Your Way out the Door,” from The New York Times, Aug. 28, 2015.]
[CLICK HERE to view the infographic, “Retirement throughout the Ages: Expectations and Preparations of Workers of All Ages,” from Transamerica Center for Retirement Studies, 2015.]
As your financial professional, we specialize in creating financial retirement solutions, but not all of them are asset-based. As people live longer, a better solution than retiring altogether might be to save for periods of unemployment, with eventual returns in and out of the workforce. For that, you need flexible and customized retirement income strategies.
Today’s buzz word in the halls of human resource departments is “work-life balance.” If the millennials can demand it, why not soon-to-be retirees? According to one research report, work-life balance is the single most important factor on staff morale — up from its No. 6 ranking in 2009. Interestingly, it’s those in senior management who complain of having the worst work-life balance.
Maybe it’s time for a change. Not a dramatic change, like retirement, but a reorganization of priorities — so mature workers can keep the responsibilities they like and delegate the ones they don’t. At the same time, this opens the door for younger workers to pick up more responsibilities and management opportunities under the watchful eye of an experienced coach.
[CLICK HERE to read the article, “Bosses have the worst work-life balance in 2015,” from Human Resources Online, Aug. 18, 2015.]
[CLICK HERE to read the report, “Wellbeing and Business Performance,” from Morgan Redwood, 2015.]
Unfortunately, while it looks like companies are starting to embrace a culture change that includes workplace flexibility, not everyone is on board. And so it may in your world. But consider whether that should stop you from achieving your own work-life balance.
There are other companies and other jobs that may value your skills and experience in a less demanding environment. To go this route, consider two things. First, focus on your skill set, not your past job descriptions. You may find that your knowledge is applicable across different types of businesses and industries.
Second, consider how to transform from a workaholic Type A personality to a more laid-back Type B. This doesn’t mean you have to drop your standards for work performance, simply that you learn to enjoy your labors more. After all, at the pre-retirement stage in a career it’s important to appreciate that work is a privilege, since it may not always be an option.
[CLICK HERE to read the article, “The Future of Work and Our Social Compact,” from Forbes, June 18, 2015.]
[CLICK HERE to read the report, “How to Go From Type A to Type B in Retirement,” from NextAvenue, July 14, 2015.]
If you’d like to discuss ways to integrate your retirement income plan with your career, please give us a call.
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