If You Are Thinking Of Retiring, Think Again

When I was 40 years old and I thought wistfully about retirement in another 20 years or so, it all seemed so romantic. Huge pension, unlimited money, great car, little cottage with a picket fence, the whole 9 yards. Now I’m 67 and there is no way I can even think of retirement. The problem? Everything is so expensive. My once great pension is now a pittance. Like many older people, my money is in my home. … I’m stuck.

 

In the 1990s my mother became ill and needed long-term care so I tapped my individual retirement account for funds and stopped making contributions. Then came the tumultuous stock-market ups and downs of the past decade, dealing the IRA another blow. To make ends meet, I went back to work part time last September, as a data-entry clerk at a senior center. I now hope to retire by age 70, but I’ll have a hard time doing so if I can’t sell my house. Many older people find themselves in this position: still working or in need of a job.

 

More than three in five U.S. workers in their 50s and 60s plan on working past 65 and 47% of that group say they’ll do so because they’ll need the money or health benefits. In this tight labor market, working into your golden years isn’t easy. And you’ll have to make your age and years on the job come across as assets, not liabilities. In addition, with the current market upheaval, you’ll need a financial plan that puts your savings on the fast track and takes into account how Social Security and Medicare benefits could be affected.

 

For many older workers, the easiest option may be to continue with their current employer. This means making themselves essential. Workers should take on new projects when possible. And it’s crucial to stay on top of the latest technology being used; you don’t want to be perceived as the old guy who doesn’t know what’s going on. Older employees also can put their experience to use by volunteering to mentor younger workers either formally or informally.

 

Of course, some workers may have to take illness or physical limitations into account. If you feel like you can no longer manage physical labor, late hours or travel, talk to your manager about moving to a different position, says Beverly Harvey, a career coach. Suggest the position you’d like to move to and show how you’re qualified for it, she says.

 

Another option is phased retirement programs that let workers gradually reduce their hours, says Cornelia Gamlem, president of human-resources consulting firm GEMS Group. There also are job-sharing arrangements, she says. For instance, if you and a co-worker are both thinking of paring your work hours, approach management with a plan detailing how you could divide your time and responsibilities. Just keep in mind that a change to your full-time status could affect your eligibility for benefits such as health insurance or a 401(k) match.