Broker Check
 
Use Downtime to Think about Retirement

Use Downtime to Think about Retirement

| May 05, 2020
The coronavirus pandemic has forced many older workers to reassess their careers and how they view retirement. Folks who are fortunate enough to be working from home might be coping with a mix of technological hurdles, while also enjoying more family time and more flexible hours. Too many others nearing retirement are facing real financial worries due to reduced income, job loss, and instability in their investment accounts.

Under ideal circumstances, there are three broad choices about how to transition away from your full-time job: phased retirement, full retirement, and continuing to work in retirement. Let’s consider how the pandemic has affected each of these options and which path could be the most fulfilling for you.

Phased retirement.

Working from home during the pandemic might be giving some workers a small taste of what phased retirement is like. Reducing the hours that you’re in the office can help you ease into a new routine where you’ll be spending most of your time at home. You’ll also have some flexibility with your schedule, which will allow you and your spouse to start experimenting with shared and separate calendars that will let both of you get things done without driving each other crazy.

Moreover, the pandemic has forced all of us to reassess the people, experiences, and goals that mean the most. Phasing into retirement can help you fine- tune your work-life balance as you continue to process how social distancing has affected you professionally and personally.

Full retirement.

That same spirit of introspection is leading many seniors to think about jumping into full retirement sooner. Perhaps being away from your job is making you realize you’re too used to doing unfulfilling work for a paycheck that’s not making your life better. Or, if you’ve been putting off retirement, the experience of social distancing might have motivated you to stop waiting and start doing as soon as life gets back to normal.

Social distancing has created a separation between our sense of self and our jobs that some people find a little unnerving. That feeling is very common among new full retirees, even those who are following a long-established plan and retiring wholly on their terms. If you’re leaning towards a full retirement right now, talk to your spouse about how you’d like to reframe your identity and start living a freer and more fulfilling life after work.

Working in retirement.

Even before the coronavirus pandemic, more and more seniors were choosing to work after retiring. Today’s retirees are healthier and more active. Some are working past 65 because they love what they do. Others transition to part-time jobs that let them explore other interests while still earning a paycheck. Many working retirees also want to top off their retirement and savings accounts while they’re still able so that their nest eggs keep pace with increased life expectancy.

Could the coronavirus pandemic accelerate this trend? While social distancing, many seniors have gained greater proficiency with technologies like Zoom, Skype and Slack. Those skills could open up a whole new world of remote jobs, including teaching and consulting positions.

Entrepreneurial seniors might be looking at the shifting landscape of global business and spotting a new route for starting their own dream companies. And still other seniors might be so sick of being cooped up that, when conditions are safe, they’ll seek out part-time jobs as a way to reconnect with their communities.

If retirement is a transition you saw fast approaching in your financial plan at the beginning of the year, let’s talk about how the coronavirus has affected your thinking. Give us a call and we can help you to plot out what you see coming next and sync those changes to your financial plan.


Check the background of your financial professional on FINRA's BrokerCheck.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Kestra IS and Kestra AS are not affiliated with Fish and Associates. Kestra IS and Kestra AS do not provide tax or legal advice. Investor Disclosures.

This site is published for residents of the United States only. Registered representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all of the products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact the Kestra IS compliance Department at 844-553-7872 opt. 6.