One of the latest retirement trends involves people who retire and then go right back to work. The phrase “working retiree” sounds like an oxymoron. However, studies and statistics have identified this growing trend. In this two-part series on Work and Retirement: The Blurring of the Lines, Nancy Conroy, a Professional Retirement Planner, and CEO of the Conroy Group Inc., explores this new phenomenon.
Do you see work as an important element in your retirement lifestyle? Perhaps you are already retired and working or you are thinking about it. Work can bring us many wonderful benefits. When indivdiuals retire, there is often a sense of loss. This stems from the fact that retirees often leave behind friends, colleagues, challenges, status, a sense of accomplishment, and more. Working for income can be a very positive force in our lives and it is, therefore, important to understand how work benefits us before leaving it behind. The individuals who decide to work in retirement do so because they realize that it does have a positive impact on their lives.
When people are asked, “What are you going to do when you retire?”, there are a couple of classic responses like “I’m going to do what I want, when I want” or “I’m going to do nothing for at least the first year”. These responses reflect the view that retirement should not involve commitments, especially the kind that working requires. These individuals just don’t want to be tied down.
Leaving these classic responses aside, however, it is amazing how many people say “I’m going to retire and and go to work”. Studies of pre-retirees report that large numbers of baby boomers expect to work in retirement, in some instances as high as 70% of those surveyed. Current statistics show that roughly 25-30% of retirees are in fact working. Why are they? Retirement used to mean NOT working any more. Retirement used to mean living a life of leisure. Well…welcome to the new retirement. In this millenium, people are going to design retirement just the way they want it to be…and for some, this will include working for income.
Need the Money
When asked why they plan to work in retirement, the answers vary. For some, the incentive will be monetary. Even though current retirees are retiring with higher average retirement incomes than ever before, some individuals find that they are not able to have the lifestyle they want with the retirement income they have. Topping up this income is a priority. In many cases, a part time job is just the ticket.
Ana, for example, is a pre-retiree getting close to retirement. She is single, a new home owner (with a ten year renovation plan) and a mother and grandmother. She began her career later in life and won’t have a full pension. She has extensive experience as a computer expert. So…Ana is actively researching the possibility of starting a part time computer business or sometimes she imagines working at Home Depot, where she spends a lot of her time and money already! She needs to top up her pension income but hopes to work part time doing something she likes.
Like to Work
Many are choosing to work for income because THEY LIKE IT! Some will continue to work in their professional field but on a contractual basis.
Take Tony for example; he has been retired for some time, having worked in international trade for many years. He takes on two or three contracts each year; he loves these projects. He can do a lot of the work from his cottage which is well equipped with a computer and connection to the internet. He likes the travel required, particularly if it takes him to warmer climates in the winter, he says. He likes the intellectual stimulation. And the additional income is a bonus.
Others will get a job, like Larry. He retired from Canada Post, having been a human resource specialist. He decided he’d like to try something different when he retired so he became a school bus driver. He liked working early in the morning and late in the afternoon as he could just nicely fit a golf game into the middle of the day. He liked driving a bus so much that he eventually went to work for OC Transpo fulltime. He says that he kept his early morning/late afternoon schedule by driving on the express routes. This way he was able to protect his free time during mid-day. Given his friendly, easy going personality it is not hard to imagine he was one of those popular bus drivers that everyone on the route enjoyed seeing every day.
Be Your Own Boss
Many individuals who decide to work in retirement launch their own businesses. These retirees love the idea of being in charge, selling products or services based on their interests, skills and abilities. Beryl is a good example of this. After a career in sales and fund raising working for other organizations, she decided to launch herself into a completely new career and business – life coaching and facilitation. She has been running her own business, B.All Enterprises, with the motto Be all You Can Be, for many years and is pleased to report that she currently has no plans to ever retire – she loves what she is doing, it generates income and provides her with the kind of lifestyle she wants.
More and more individuals in their fifties and sixties, and some even later, view work as an important and desirable activity to engage in when they retire from their primary careers. This transformation in how we view work and retirement will have a profound impact on society. Stay tuned to find out how in Part 2.
Nancy Conroy, PRP, MA, is the creator of LifeScape, a retirement planning web tool. This tool has been designed to help individuals prepare effectively for retirement, whether they plan to work or not. It incorporates all of the important issues relevant to retirement planning and can help individuals take the right steps to ensure that they are happy, healthy and financially secure in retirement. For more information, contact her at 613-729-2796 or by email at nlc@theconroygroup.com.