Unretirement

Unretirement

Navigating the New Normal: Why "Unretirement" is Becoming a Trend and What You Can Do About It

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Welcome to this week's edition of our newsletter, where we delve into the rising phenomenon of "unretirement." (in this article, we address one of the 6 Hallmarks of a fantastic 4th quarter known as Financially Free. Let me know if you want to know more about the Hallmark Strategy - [email protected] .)

Recent data from Standard Life reveals a striking trend among retirees, primarily baby boomers and late Gen Xers, with a significant number returning to the workforce. This shift is spurred not by a longing for the daily grind but by economic necessity. Let's explore what's driving this trend and outline practical steps you can take whether you're approaching retirement or already there. By the way, Jim Huling sent me a link to an article that got me thinking (thanks Jim!)

Unretirement: A Closer Look at the Data

A survey involving over 6,300 UK adults shows that 14% of retirees have reentered the workforce, and another 4% are contemplating it. Men are particularly more likely than women to return to work, with nearly a quarter considering it. The driving force? Financial pressure. Inflation and rising living costs are making it increasingly difficult for retirees to sustain their expected standard of living, forcing many to postpone retirement or seek additional income.

What's Happening On Both Sides Of The Pond?

The trend isn’t confined to the UK. In the US, the percentage of those over 65 who remain employed has quadrupled since the 1980s. Today, almost 20% of Americans aged 65 and older are still in the workforce, doubling the rate from 35 years ago. The reasons mirror those in the UK—insufficient retirement funds and the high cost of living.

Actionable Steps for Navigating Your Retirement Planning:

  1. Early Planning and Investment. Start planning your retirement as early as possible. The benefits of compound interest, as highlighted by financial expert Suze Orman, can significantly amplify your retirement savings. For example, a regular monthly investment with a 12% annual return could transform a modest sum into over a million dollars over 40 years. Begin contributing to your pension now to maximize your returns.
  2. Consider Flexible Working Options. If you’re nearing retirement age or already retired and finding finances tight, consider flexible working options such as consultancy roles, part-time jobs, or freelance projects. These can provide a source of income without the commitment of a full-time job, allowing you to balance earning with leisure.
  3. Stay Informed and Adjust Your Financial Plan Regularly. Keep abreast of economic trends and adjust your financial planning accordingly. Regular reviews of your financial situation can help you make informed decisions about delaying retirement or adjusting your investment strategies. Consulting with a financial advisor regularly can also provide personalized guidance tailored to your financial situation.

Conclusion

The shift toward unretirement highlights the changing landscape of retirement planning. Economic pressures are reshaping traditional retirement trajectories, making it essential for individuals to adopt more dynamic and proactive retirement strategies. By starting early, considering flexible work options, and staying informed, you can better navigate these changes and secure a financially stable retirement.

Look, it’s never too late to reassess your plans and make necessary adjustments to ensure that your retirement years are as fulfilling and worry-free as possible.


The information and statistics cited in the newsletter come from the following sources:

  • Standard Life Survey: This survey, conducted among more than 6,300 U.K. adults, provides insights into the trends of unretirement among baby boomers and late Gen Xers, revealing the financial pressures leading to this phenomenon.
  • Pew Research Center: Offers data on the employment trends of Americans 65 and older, showing a significant increase in employment among this age group since the 1980s.
  • Suze Orman: Financial expert Suze Orman's advice highlights the power of compound growth and its potential to significantly boost retirement savings over time.

These sources provide the foundational data and expert opinions that inform the strategies and insights shared in the newsletter article on navigating unretirement and retirement planning effectively.


Next Steps:

Jim Huling

Executive Coach | Author #1 Worldwide Bestseller The 4 Disciplines of Execution | Strategy and Execution Consultant | ???????????????? ?????? ?????????????????? ???????????????? ??????????

7 个月

This is so insightful. I’ve learned so much from you, Scott, and because of it, both “retirement” and “unretirement” have blurred into the single idea of “How do I continue to have an impact?” This focus seems timeless and unlimited, and keeps me grounded in my purpose. Does that makes sense in the way I’m saying it?

David D. Doerrier

Empowering Technical Experts to Captivate Audiences | Turning Complex Ideas into Clear, Impactful Messages | Public Speaking Trainer I USAF Ret.

7 个月

Scott Couchenour's exploration of "unretirement" is intriguing. It's a phenomenon that's likely driven by a mix of financial necessity and the desire to remain active and engaged. As someone who has transitioned from the Air Force to leadership training, I can attest to the allure of new challenges post-retirement. It's about harnessing skills like effective communication and persuasive speaking in new ways.

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