Why you should be offering ‘unretirement’ planning solutions
For many people, work is simply a means to afford to live, but for others it provides a purpose, a social network, a framework for everyday life – and that’s hard to give up for good.
With longer life expectancy, the idea of retiring at 65 or earlier may be out of step with what today’s retirees need, either financially – given the risk of a financial vortex – or emotionally; retirement can last several decades.
A growing trend for ‘unretirement’ is gathering pace as millions of American retirees consider going back to work for financial or other reasons and for advisors, recognizing this and offering additional advice as part of a holistic approach to retirement planning solutions could prove beneficial.
T. Rowe Price published a report this week showing that 20% of people surveyed already work at least part-time while another 7% are looking for work opportunities. They are almost evenly split between those who need to work to boost their finances (48%) and those who do so for social or emotional benefits (43%).
Women and single retirees are more likely than men or married couples to cite income as the primary motivator. Men were more likely to cite social connections as motivation to work.
The report highlights that continuing to work or returning to the workforce does not necessarily mean sticking with a previous role or industry.
While millions of retirees have experience in their industries and may wish to leverage that, many take the opportunity of semi-retirement to follow a vocation or passion, while others may seek remote work, part-time jobs, or flexible arrangements that allow them to enjoy the dual benefits of retirement and work.
“Many retirees either choose to work or need work to be included in their
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