One financial advisor says he’s seeing more and more people in their early 60s retiring part-time for a variety of reasons
SAINT LOUIS, Mon .– During the COVID-19 pandemic, many people considered quitting work. If you are in the latter half of your career, there are a few things to consider if you want to go into partial retirement.
Jeff Sachs of Sachs Financial in Creve Coeur says his office is busier than ever when he’s trying to help people figure out whether to keep working or dropping out.
“Partial retirement is a relatively new concept,” said Sachs. “It used to be that when you retired you were done with work and you didn’t have to continue or you had a reason to continue.”
Sachs says he talks about retirement all the time with his clients, and here are five reasons you might consider before starting part-time work:
You are not satisfied with your retirement savings
Depending on where you retire, you may need more in the bank account. The Institute for Health Metrics and Evaluation has ranked each state, and Missouri has the eleventh lowest overall retirement estimate at $ 952,000. Illinois has the 20th highest value which is just under $ 1.1 million.
“One in four Americans don’t save for retirement,” Sachs said. “Or if they are, they haven’t saved enough. If you’re in this boat, you might have to work a little longer and postpone Social Security.”
They expect a longer life
Most of us plan to live longer than the generation before us, even though the pandemic has reduced our life expectancy by 1.5 years in 2020, according to the Centers for Disease Control. Still, life expectancy in the United States fell to 77.3 years. If you retire at the age of 65 when Medicare kicks in, you will need more than a decade in savings.
It speaks for itself – if you love your job and still can work, why leave?
You like to have some structure in your life
Sachs says he’s talking to his clients about what their retirement should look like.
“You can’t sit at home and watch TV all day,” said Sachs. “You can’t play golf all day. You can’t say, ‘I’ll paint every day in my retirement.’ Studies have shown that people who do not have this structure become depressed and lose the reason to leave the house. “
Even volunteering at attractions like Grant’s Farm or a local hospital can be a great way to add structure, he says.
You want to go into retirement relaxed
Most people come to Sachs in their early 60s to talk about partial retirement.
“It’s getting more and more,” Sachs said. “You want to retire to get that early social security, or you’re just fed up with work and want to spend your 60s and 70s traveling but you don’t have health care.”
Sachs says if you can you should wait to apply for Social Security when you’re ready to retire, but the years in between can be difficult.
Sachs also says there has been talk of the Biden government considering lowering the age for Medicare eligibility, and if that did happen, many seniors would feel like they would have more freedom to retire.