Perks of Starting an Encore Career!
In a previous blog, we looked at the benefits of a Phased Retirement. Basically, the main benefit was to keep the mind active and help the recent retiree have a purpose in their daily life. Another route to fulfill these needs can be through an encore career. There are many different ways to fulfill this, either through paid or unpaid, new or known career knowledge. Below we highlight a few ways to start an encore career.
- Volunteer Work: For those who are truly financially independent in their retirement, meaning they have enough to live the life they envisioned or are comfortable in their retirement life, volunteer work is a great way to keep the mind active and have a feeling of purpose, like they are making a difference in their weekly life. Volunteer work is also fulfilling because the retiree can choose which field they would like to work in, such as volunteering in the field of early childhood or helping those struggling to get back on their feet. This flexibility may help the recent retiree feel fulfilled and passionate about what they are doing with their golden years.
- Turning a hobby into a business: This is a path that many experts warn to think through carefully, because far too many people have plunged their entire retirement savings into a passionate hobby that simply didn’t turn into a business. But if the retiree has a limit of what they are willing to invest in their new visionary business, then this may be a path that is very fulfilling! A hobby, such as knitting or gardening, in today’s internet age, can take off to a whole new sphere of success! And doing what one loves (such as in the field of volunteer work) AND receiving a supplemental income from it can seem like a win-win: extra money and a passionate reason to get out of bed each morning.
- Phased Retirement: As mentioned in a previous blog, phased retirement can benefit the retiree because they are able to stay active, it is in a field that they have vast knowledge in and they can receive a supplemental, part time income (depending on how many hours are scaled back). The need to have a weekly purpose is easily fulfilled and is an easier path than starting a new business.
- A part time career: This is one that is most familiar to retirees, be it a greeter at a store, a cashier at the local grocery store or some other part time job, many retirees find this the easiest path to transition into. There is no great commitment or taxing work to be done, but includes a flexible schedule and some form of supplemental income. There are many businesses that actually look for recent retirees because they find that they are more dependable than some teenage part time workers and that they are flexible are in their schedule.
- A brand new career: Similar to a part time career, this entails going into a new field, possibly an earlier passion that may not have been financially possible before. For example, being a tour guide at a local museum or national park or a speaker to children at a school, about what life was like back when. Or it could be a totally new career, such as an Uber or Lyft driver, where the hours are decided by the retiree.
- Advisor: Similar to a Phased Retirement path, becoming an advisor (either for a company that the retiree has worked for or a competitor) can help the retiree with supplemental income, but also to help feel needed and as if they are making a difference somewhere.
Regardless of which path the retiree chooses, we here at Your Retirement Advisor feel that staying mentally and physically active is important to maintaining a healthy lifestyle during their golden years. Because after all, the golden years are meant to be enjoyed and to feel like there is a purpose to getting out of bed each morning.
