I Can’t Do This Anymore!
If you’re like most people, you’ve had your fair share of days where you walked out of work ready to throw in the towel. Those days may be more frequent if you’re approaching “retirement age.” I can’t tell you how many times we’ve had a client plop down at our desk with an “I’m done; I just can’t go back.” That is particularly common in our area of the world (rural America, for all those who are not local) where we have a lot of blue-collar workers. Ed and I work with people from all walks of life, but oil, mining, construction and refining are very common in our area, not to mention all the small business owners. The work can take a serious physical toll on a person’s body. On top of the physical strain, there are always new young pups coming in and changing the regulatory and work landscape. While many workers would predict their retirement target date to be in their mid-sixties, 59 rolls around and the feeling of “doneness” starts to set in. At 59, you aren’t eligible for social security or Medicare and, for another 6 months, you aren’t even able to take money from your qualified retirement plan without penalty. So, what do you do when the retirement itch comes knocking but you aren’t prepared financially? Well, I have a few ideas for you!
- Dial Back
Now, this might not be an option for everyone. It is going to depend a lot on your line of work, job title and the company you work for. If you have the option to dial back in some capacity, now is a great time to do so. As a senior more person at your workplace, you add valuable experience and knowledge. Most companies are not eager to let that experience walk out the door. The first step is exploring the company handbook to find out what policies may exist for part-time work. For example, some companies offer a part-time thirty option which allows the employee to maintain their health and retirement benefits while cutting back to only thirty hours. Many companies have some variation of this. If your company doesn’t have a current policy in place, present them with a scenario that you feel works for everyone. Understand there will likely be give and take, but as my husband always says, “you can’t get slapped unless you ask.” - Consulting/Contract Work
We see this a lot with our clients, many of whom worked for the railroads, refineries or other natural resources. As I mentioned above, if you’ve spent your career in the industry, you likely have incredibly valuable experience. Companies will pay for that expertise. Start by dusting off that old resume and spruce it up with all the areas in which you have experience. Think about specific projects you’ve worked on and niches you’ve carved out over time. Present yourself to the companies in your area where you can add value. Don’t sell yourself short. You’ve seen a lot in your 30-40-year career, companies need that. Now, this is a bit of an over simplification of consulting and contracting work. Should this be a path you decide to explore, I would encourage discussing it with a legal professional as there are likely entities to be created and insurance to acquire. - Transferable Skills
Maybe it’s just time to leave. Not the workforce entirely (although under some circumstances that is the case), but the company and/or industry you’re currently in. This is a time to take a hard look at what skills you possess that could easily transfer to other work. My father-in-law made a career change in his 60s BEAUTIFULLY. He went from owning and later helping mange a recycling company to handling logistics at a transportation company. He made the transition seamlessly because he is an incredible organizer. He looks at his work like a puzzle to be solved and has the ability to clearly lay out the pieces in his mind. Organization was a skill he was honing during his years at his recycling company and it (along with a genuine ability to connect with people, also likely sharpened through business ownership) made his transition natural and even enjoyable. What skills have you learned, or just naturally possess, that can transfer from what you currently do, to some other form of work? A career change in the later part of your working life can be intimidating, but if you focus on the skills and knowledge you have acquired through the work you currently do, you can greatly decrease the learning curve in a new career and make yourself very attractive to other employers. This may also be a great opportunity to explore career options you always dreamed about but never pulled the trigger on. My husband longs for the day he can spend his mornings mowing lawns. He’ll likely “retire” to do some form of lawn care or greens keeping. What have you always wanted to spend your days doing? Find a way to make money at it! - Vacation
Well, this can be a no brainer depending on where you work. If you work for an employer that allows you to carry over vacation time, there’s a good chance you have a fair amount of vacation stacked up (I’m looking at you over there, husband). Talk to your employer about some creative ways you can use that built up vacation time. We all need to feel rejuvenated from time to time, and sometimes all it takes is a family vacation or a long weekend. I have one client who had built up enough vacation time to take every Friday off during June, July and August. They weren’t big travelers, so a week-long vacation was never really necessary, but knowing that during the summer months he would have 3-day weekends gave him the boost of energy he needed to continue through his last 3 years of work. Again, so much of this depends on what your employer will allow, but if you have made yourself a valuable asset to your company, there’s a good chance they will work with you in whatever way they are able to keep you around as long as they can.
If you’re feeling the urge to throw in the towel a little earlier than your finances would allow, know that you are not alone. More often than not, now days, we are seeing retirement as a progression rather than a date. Whether you are in need of a little more time off or just a simple change of scenery, you have options that maybe you haven’t considered yet. I would strongly encourage everyone to meet with a financial professional before making any hard and fast decisions. They can help you determine what level of income is necessary as you walk through the different phases of your retirement plan. Having the numbers laid out in front of you will give you the confidence you need to make the best career decisions possible. Every retirement looks a little different and if your dream has always been to work part-time at the book store down the street, maybe now is your chance.
Opinions expressed are those of Molly VanBinsbergen and are not necessarily those of Raymond James. All opinions and numbers are as of this 7/7/2020 and are subject change without notice.
