Retirement is not a choice for about a third of the people in the U.S. They are forced into abrupt, overnight retirement by their companies’ policies or, unfortunately, by a company downsizing. This sudden, dramatic change in employment status is what I call “Jump-Off-a-Cliff” retirement.
One day these people are working at their primary lifelong employment; the next they are not. Many are delighted to be liberated from a daily work obligation. They have looked forward to it for years. They have plans to travel, to visit friends and family, and to focus on personal interests. And immediately they begin to do all these things. It is like being on permanent perpetual vacation. Yippee!
The new reality: too much time on your hands in retirement
Then a new reality sets in. (Often this happens in less than a year.) The person who retired abruptly finds that he/she has done almost all of the big things on the “to-do-when-I-retire” list and still has seemingly endless hours and days to fill. (Keep in mind that there are 7300 days during a 20 year retirement! And if you retire at 62 the chances are excellent you will live to 82 if you are a man, and to age 84 for women!)
Many discover they miss the camaraderie and structure of the workplace. As a solution to this too-much-time issue, some try to find a way to involve themselves in their previous work, either as a part-time employee or as a consultant, even if they do not need the money. Others take on part-time employment in an unrelated field to give their lives some structure. Still others start new small companies–some of them online businesses.
Other people take up new activities, such as volunteer work, but approach the activity as if it was “work”–without the requirement that it generate money.
Whether money-making work or a volunteer job, these are all very healthy ways to enjoy your retirement. Study after study has shown that having mental challenges and goals can actually add years to your life.
But, sadly, all too many retirees begin to spend more time in front of the TV to the detriment of their physical and mental health. If this sounds like you, please read the page about Bucket List planning for your future. Don’t wait!
Two Jump-Off-a-Cliff Abrupt Retirements:
Elise worked in the Capital as an environmental lobbyist for decades, but her company’s policy was retirement at age 65. Her generous retirement benefits gave her the freedom to do what she wanted. She knew, however, she would not be content to sit at home. She was far too committed to protecting the environment, so even before she retired, she contacted her favorite environmental organization. They were thrilled to have someone with her contacts on their team and offered her an unpaid part time management position. She accepted. For the first three months after her retirement she and her husband did their big bucket list trips. And now–six years later–she still has short, flexible hours and a satisfying professional life.
Mary was the chief financial officer at a private college with a mandatory retirement age of 65. Her husband had retired several years earlier and simply wanted her to be with him and, in particular, spend time traveling. It turned out his idea of traveling was a long weekend here, a week there–most of it in the U.S. Months on the road or a long jaunt around Europe was not what he had in mind. Happily, she was invited to join the Board of Directors for a retirement facilities corporation where she now is an adviser and attends monthly meetings, but does not have to be involved in day-to-day stresses of management. She has plenty of time with her husband.
A second option: gradual retirement, but it may not be easy to do
Recent research has revealed that 4 out of 5 people over age 50 intend to keep on working after a traditional retirement age. Some will continue working for financial reasons; others because the enjoy their jobs. However, those who are not forced to retire at a specific age may discover as they grow older that they would like to spend fewer hours working and have more time for personal interests. They want to go the gradual route to retirement. This choice, however, has no fixed path to follow and may take some detailed planning and diplomacy to manage well.
Ask yourself these questions:
1. Would your company would be amenable to employing you part-time if you suggest it? Or would they show you the door as fast as they can if you mention working part time?
2. Does your company already have a policy about partial or gradual retirement?
3. If they already have a policy, what impact will your semi-retirement and working part time have on your retirement income and health care? Will you have to officially retire and come back as a part-timer? Or just work shorter hours?
4. Does your company already employ part-time workers frequently? If so, are they paid at the same time as other employees? Or do they have to invoice for their work and wait for the invoice to be paid?
5. Is it possible for you to launch a consulting service in your field and work for one or more companies if you wish? (This would allow you to still use your skills and knowledge, but–hopefully–control the hours you work.)
Your answers to these questions will dictate how you should progress with your gradual retirement. It may take some skilled negotiating with your boss or with Human Resources.
You might want to draw up a description of what kind of job your semi-retirement would involve as a kind of “cheat sheet” when you discuss a gradual retirement at your current company.
Two Step-Down Gradual Retirements:
John worked as a truck driver for a city government in Southern California. He was eligible for retirement at age 60, but, because there was a hiring freeze his boss asked him to stay on the job “for a while.” Realizing that full retirement would perhaps now come with almost no forewarning once the hiring freeze was lifted, he bought a show dog–something he had planned to do in retirement–and began breeding and selling them. He also took a part time job at a weekend farmers’ market where his wife sold her crafts. (These crafts, children’s hats, were her retirement business. Read more about her here.) Four years later he is still working almost full time for the city, while his pension has continue to grow. His dogs are now greatly in demand. He knows that the politics of city hall may lead to sudden retirement, but now he has taken some steps to prepare for it.
Dede worked as a freelance graphic designer and decided that she wanted to retire like almost all her friends were doing. The management changed at one major client, so she told them she would not continue doing work for them. It was a pleasant parting of ways. A year later she decided to say goodbye to her last remaining large client and gave them six months notice. Ignoring her generous notification, they replaced her in three weeks–much to her dismay. Before long she began to have doubts about her decision to quit working and missed the professional contact. Within six months she had acquired new small clients. AND, the client who had replaced her so quickly, came back and offered her even more money to work for them again. It turned out her replacement wasn’t meeting the client’s high standards.
Whichever approach you take to retirement, just be aware that retirement is not simply “cruise control” for the rest of your life. You will have to make plans and make decisions about those twenty plus years you live after you retire. Yes–twenty years! So start planning now.
NOTE: All names on this site have been changed to protect individual privacy. The stories are real, the names are not.