Going from working 40 hours a week to zero challenges most people entering retirement. The jump from being a productive part of society to figuring out how to fill your days drives many people nuts. Some people can't stand spending all day playing golf, socializing or watching TV.
Whether it's because they haven't saved enough for retirement , or because they're bored and driving their spouse crazy, many people of retirement age are deciding to rejoin the work force.
"Women have an easier time retiring, volunteering and having social time with friends than men," said Greg Powell, the author of "Better, Richer, Fuller," a book on how to retire well. "Boredom can be one of the biggest problems in retirement, even if you don't need the job. You want to make sure you're fulfilled and not going to the track all the time."
Powell, the chief executive of Fi Plan Partners, an independent financial advisory in Hoover, Ala., disputes the idea that costs go down in retirement. He says people go on more vacations, eat out more, and travel more to see the kids and grandkids. And that's assuming you don't have any health problems.
There are three categories of jobs that retirees look at, said Ann Vanderslice, chief executive of Retirement Planning Strategies of Denver: staying in the same field, such as a lawyer continuing to do legal work; looking for a job that relates to a hobby; or reinventing yourself by doing something completely different.
Hobby jobs run the gamut. For the golfer, it could be the guy at the course who registers the starting times, or in the pro shop. The baseball fan could work as an usher seating fans. The theater buff can also usher and hand out programs at performances. The artistically inclined can finally become the painter or writer they always wanted to be. Others might go to a hobby or fabric story like Michaels ( MIK ), where they can talk to people about quilting and colors all day. Other ideas include working at a flower shop, as a local tour guide, or at a nonprofit for a cause you believe in.
Some people are forced into retirement, disrupting their plans. Their savings aren't where they expected them to be.
Beth Blecker, a financial advisor at Eastern Planning in Nanuet, N.Y., tells of two clients who had to reinvent themselves. A manager at Verizon decided to get a job as a custodian at a senior center. Not only was it less stressful than his previous job, but it was fun as the seniors often asked him to sit and chat. He worked 15 years, received medical benefits and ended up with two pensions. Another corporate middle manager wanted to do something with kids. After a forced retirement, he became a school-bus driver and got summers off.
"The key is starting the process in advance of retirement to identity what kind of job they want, then network to identify the ideal opportunity," said Tony D'Amico, chief executive of Fidato Wealth, a registered investment advisor (RIA) in Strongsville, Ohio.
All the experts say analyze your strengths and skills that can be used in an industry other than your current one, and then decide how much obligation and stress you want to take on. Some people work with a career coach to develop a strategy.
But as they say, "it's not just what you know, but who you know." A lot comes from networking, and if you've been in the same job for 10 years, networking might not be on your mind. The gym is a good place to network, so is a temp agency. If you get a temp job, you get your foot in the door. It's often like a tryout. The danger zone is when you only see the same old friends and don't make new relationships.
Rick Rodgers, the author of "Don't Retire Broke," said start making those contacts two years ahead of time. He said his clients find driving for Uber to be a great job because they work on their own schedule.
"We know from statistics that people with a plan written down on how to make a transition have a smoother glide path than those who say I'll manage when I get there," said Vanderslice.
If you using this new job to hold off collecting Social Security , that's a good strategy. If you're already collecting Social Security and Medicare, check with your accountant to find out how much additional income will cause you to pay taxes on your Social Security payments before taking on the new job.
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