For many Americans, working beyond the traditionally defined retirement age of 65 is becoming the norm. According to the Voya Retire Ready Index™ study, only one-third of workers anticipate having the choice to completely stop working during their retirement. In addition, the U.S. Department of Labor indicated that more than 30 percent of employed Americans in 2015 were between the age of 65 and 69.
Many employers are focused on helping their workforce achieve retirement readiness. This is good for workers to help them achieve retirement in a manner they want, but this also helps the employer to achieve a healthy balance of talent. That said, while some people may still hope to achieve the classic definition of retirement, there are many good, and sometimes necessary, reasons to pursue an “encore career” even after ending your conventional one. Whether for financial reasons or to simply follow a passion, finding an approach that works best for you can help you live out your golden years to their fullest. Below are three main reasons why one might consider pursuing an encore career:
Supplementing Your Monthly Retirement Income
One of the main benefits of an encore career for most retirees is the additional financial support it can provide. This is particularly relevant if extra income is needed to help meet your monthly living expenses. Sometimes, unforeseen events can cause a shift in your retirement plan. According to the Voya Retire Ready Index, 60 percent of recent retirees said the timing of their retirement was unexpected. If your retirement catches you by surprise, take a deep breath and assess your options. Part-time employment options could be available to help generate any necessary or supplemental funds.
Even if your finances are in great shape to meet all of your primary needs, an encore career can provide the flexibility to help attain the “wants” and “wishes” in retirement. Whether that includes travel, hitting all the items on your bucket list or leaving behind a legacy for your family, an extra income can support all of these efforts — while still helping to maintain your cost of living.
Following a Passion
One of the great joys of retirement is the freedom to explore both new and old passions. The Voya Retire Ready Index also found one in three current workers would consider an encore career to help occupy their time in retirement. Many retirees take full advantage of their extra time by learning a new skill, trying a new hobby, offering their expertise at a nonprofit or starting a business that they never had the hours to support during their working years.