Retirement used to mean a gold watch and pension from a company after 30 years of service. Now people are more likely to retire after working at multiple locations throughout their career with no pension, a limited Social Security payment and a variety of 401k plans and IRA's to manage. And with advances in medicine and longevity, those assets have to stretch over an increasingly long life.
Financial Advisor in Los Angeles on Retirement
Traditionally thought of as the finish line of a career, retirement is now being reconsidered. An increasing number of people are choosing to pursue "partial retirement," cutting back their hours with their current employer or seeking consulting work that draws on their experience, but requires fewer hours. Others are choosing part-time work in an completely different field.
In its 2010 "Working in Retirement: A 21st Century Phenomenon" report, the Sloan Center on Aging and Work and the Families and Work Institute reported that 1 in 5 workers has a post-retirement job and 75 percent of workers expect to work or transition to a second career at some point after they retire.
Partial retirement has many benefits - providing income so that withdrawals from assets can be reduced. The additional income may allow you to delay taking Social Security benefits, letting them to grow 8% per year (between your full retirement age and age 70). When to Start Receiving Benefits
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In addition to the financial benefits, partial retirement will allow you to retain the social support of your business colleagues as you build up new social contacts outside of work. Going from full employment to full retirement is a major lifestyle change and many retirees struggle to find hobbies or new passions that can replace full-time work. Depression, anxiety and feelings of uselessness are more common than you might think. Partial retirement allows for a slower transition that gives retirees time to find new pursuits while still having the familiar structure of work.
Click here to read further about this trend towards partial retirement: Partial Retirement: Money, Knowledge and Work-Life Balance
While partial retirement can be a great solution to balance income requirements and a desire for more free time, it takes effort to coordinate it with your finances. If you are interested in partial retirement, talk to a fee-only financial planner in Los Angeles for objective advice and guidance for your retirement decisions.