Retirement offers people a great opportunity to start something new. In addition, life expectancy trends indicate an increasing number of baby boomers should be prepared for a long life in retirement. While this is good news, it also creates a couple things to think about:
1. Financial resources may need to extend for a retirement that could last two-to-three decades or longer.
2. Healthy, vibrant individuals may not be prepared to “shut down” and enter into a traditional retirement.
It may be time to rethink plans to retire at a traditional age, such as 65. For many, working later into life may ensure long-term financial security. It may not be a financial necessity but a desired lifestyle choice. Those who are healthy and energetic might not be ready to give up on work just yet. What do you do now?
A new chapter
As you enter your late 50s and early 60s, you may be thinking about what’s next in life. High on the list for many is maintaining a sense of purpose as you grow older. In many cases, continuing to work in some capacity is part of this equation.
This may mean reinventing yourself and the role you play as a contributor in the workforce. It requires out-of-the-box thinking to determine what you may be suited for that differs from what you’ve already been doing in your career. The range of options at this stage in life may be broader than you think. They include:
• building on your experience by becoming a consultant for former employers and others with a similar need;
• taking on a part-time role with your current employer, something that gives you more flexibility to pursue other interests;
• pursuing a dream to start a business, possibly in a field different from what you’ve pursued in the past; and
• providing your services to benefit organizations and people in a volunteer capacity.
On purpose
A developing trend is the desire among many baby boomers who want to keep working to find an occupation that provides an increased sense of purpose in life. Money may not be the prime motivation to keep working. Particularly for those who are more financially secure, the drudgery of a workaday world can be set aside.
Older Americans should not rule out the opportunity to take advantage of their available time to relax as well. Taking time off after spending years dedicated to a career and accumulating wealth is well deserved. It might also give you an opportunity to retool, reconsider your options and determine the best course of action for the next phase of your life.
The idea of reinventing yourself later in life can be a viable option for you. Make sure you have your financial house in order and avoid taking steps that might put your long-term financial security at risk. This can be an exciting time in life full of new opportunity.
You’ll want to be certain that any choices you make are consistent with your abilities, energy and financial capabilities.
Paula Dougherty is a certified financial planner and private wealth adviser with Ameriprise Financial Services Inc. in Springfield. She can be reached at paula.j.dougherty@ampf.com.
