A Health and Retirement Study examines the unexpected benefits of nontraditional jobs to individuals near retirement age.
Even though these jobs do not provide health insurance or other job perks, they are helpful for workers toward the end of the work trajectory, according to the Center of Retirement Research at Boston College.
The main focus of the study was to determine how a job after the age of 60 improves overall retirement security.
Evidence shows that people who enter the nontraditional workforce late in their career will enjoy greater retirement wealth when compared to those who remain on the job or decide not to pursue new work upon retirement.
Individuals not fully prepared to begin retirement due to lack of long-term resources and security can turn to nontraditional employment to correct course.
Nearly half of working-age households are at risk of not supporting their current lifestyles if retirement started today.
The economic fallout associated with the COVID-19 pandemic is not making matters any easier for individuals focused on retirement planning and savings.
These realities put a renewed focus on outside-the-box strategies to bolster retirement resources.
Rejoining the workforce near the latter chapters of your career greatly improves security, the study found. It allows for Social Security benefits to increase over time and shortens the amount of time that nest egg resources will cover.
If a worker decides to work until the age of 70, he or she cuts their risk of falling behind in retirement by 50 percent.
In addition, workers who stay employed longer will be better off than if they had boosted more into retirement savings throughout their careers.
If you’re thinking about a new line of work, it’s important to keep in mind that it will look very little like the work you performed throughout your career.
Workers over the age of 50 hold a disproportionate share of independent contracting, on-call work and temporary jobs, leaving them at the mercy of unpredictable hours. They may also be left out of key benefits.
As an upside, nontraditional employment can ease the transition into retirement life. Many times, workers are matched with jobs that are a natural fit, especially when it comes to physical demands.
If entering the workforce anew is not an option you are considering, that’s understandable. You’ve worked a long and fruitful career and deserve the freedom of stress-free post-work life.
Individuals who are 62 years or older have another option: A Home Equity Conversion Mortgage.
This retirement option can double your buying power, allow you to retain liquidity and open the door to new financial opportunities.
As a borrower, you will no longer make monthly payments as long as you live within the home. And you will still be entitled to sell the home, or pass remaining equity on to heirs.
Please contact us today to learn more about this opportunity to boost your income and to enjoy the new freedoms of retirement life without any compromise or delay.
*(1) at the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds; (2) charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees; (3) the loan balance grows over time and interest is charged on the outstanding balance; (4) the borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and (5) interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment. This material is not from HUD or FHA and has not been approved by HUD or any government agency.