“Retirement is a transition, not a destination.” – Marc Freedman, CEO/Founder of Encore.org
Thousands of people turn 65 each day, and, for many, that means reaching the age of retirement. It’s a milestone that many of us have learned to associate with rest, relaxation, and comfort. But for many Baby Boomers reaching their 60’s, the idea of traditional “retirement” has evolved.
Many Baby Boomers who’ve reached the “traditional” retirement age of 65 are using their newfound free time to explore something called “encore” careers. This is continued work in the next phase of life, often combining social purpose with continued income.
If you’re considering an encore career of your own, we’ve outlined some compelling reasons as to why it’s beneficial.
Additional cash flow
A second career can provide a boost to your financial situation. Income from an encore career can also help you preserve your 401(k) account and other savings to make sure you really have enough for retirement. This can contribute to costs like eating out, vacations, home remodeling and more. Your retirement savings can be reserved for the big things, like monthly housing expenses, bills, and health care costs. For some, the additional money can be used to continue saving on top of what was accumulated during his or her first career. The financial benefits are obvious, but certainly something to consider when making this choice.
The pursuit of a passion
What have you always wanted to do, but never had the time to fit into your day when working full-time? Become a published author? Work for a non-profit? Volunteer at an animal shelter? A chance at a second career post-retirement is when you can take those dreams and make them a reality. Many of us have passions outside of our full-time jobs and an encore career could give you the ability to pursue them more readily.
It keeps your mind sharp
Keeping your mind active as you get older is just as important as keeping your body active, and encore careers provide a perfect opportunity to do that on a regular basis. Challenging your mind through problem solving or strategic thinking at work can even ward off memory loss. Studies also reveal that individuals who are intellectually involved are less likely to develop dementia.
The social benefits
A retiree’s “second act” might fill an emotional gap that can appear following retirement. Some find themselves adrift during retirement because the regular interaction they had with others is more difficult to find outside of the workplace.. By taking on a second career, retirees are able to fill that gap.
Planning for retirement is an exciting time for today’s retirees. Whether it’s around the corner or feels like a long way off, future retirees can ease the transition by exploring their options for after retirement, particularly in the form of encore careers. When choosing an encore career, individuals should consider the strengths they had when working full time and how those might translate into a second career. Do this and potentially stress less about the transition into retirement, and focus more on enjoying this next phase of life.