FINANCIAL PLANNER GILBERT ARIZONA FINANCIAL PLANNER GILBERT AZ FINANCIAL PLANNER GILBERT AZ FINANCIAL PLANNING HELP | GILBERT ARIZONA Financial Planner 480-503-0050 http://www.TeresaBear.comGilbert Arizona Retirement Planning Video and Blog by Gilbert Financial Planner Teresa Bear Discusses How Working in Retirement Could Benefit Your Health and Wallet.

Gilbert AZ Retirement Planning Video and Blog by Gilbert Financial Planner Teresa Bear Discusses How Working in Retirement Could Benefit Your Health and Wallet.

Ready For a New Set of Tires?

Earlier this year, I bought 5 new tires for my car.  I replaced all of them – even the spare. Never mind that I had 180,000 miles on the vehicle at the time, I was optimistic that I would continue to drive my car, rotate the tires regularly, wear them out – and replace them again at 250,000 miles.  My car was re-tired.

The word “retire” is from 16th century French – re (back) tirer (draw).  The literal meaning is to withdraw to a place of safety or seclusion.

What type of retirement do you dream about? Is it one where you draw back from society or is one in which you outfit the vehicle with a fresh set of tires to set off on new adventures?

I first met Paul when he was 62 years old.   He considered himself “retired”.  The interesting thing about Paul is that he was still working.  I prepared his tax returns & jokingly referred to him as “the man of a thousand W-2’s”.  Of course, he didn’t work at THAT many jobs – the number was more like 7. I don’t know many retirees who are as happy as Paul.

In her book, A Long Bright Future1, Laura Carstensen suggests the revolutionary idea that our working lives should not stop at age 65 – but possibly continue into our 80’s.  She recommends a gradual cessation of work.  Instead of slamming on the brakes at age 65, retirement might mean coming to a slow stop over time.

This retirement could look something like Paul’s retirement – trading his high paying, high stress job for 7 low wage, odd jobs. Perhaps it’s more like my optometrist – who gradually turned over his business to his son, but still saw patients a couple of days a week in his 80’s.  There are many reasons why you should consider working after you reach retirement age.

One is that many baby boomers don’t have a pension.  The old model of retirement income assumed that 1/3 of your retirement income would come from a company pension.  However, baby boomers are less likely to have a pension than their parents and they might work due to necessity.

The traditional retirement income model also assumes that you will be able to fund anther 1/3 of your retirement income through personal savings.  However, if you have been unable to save or had that savings wiped out though stock market crashes, unexpected job loss or children’s education expenses, continuing to work will allow you to build up your retirement savings and reduce – or eliminate debt.

Oddly enough, many older workers don’t necessarily work just to pay the bills – many do so for the social connections.  According to Dr. Carstensen, these may be particularly important to men.  When asked who is their best friend, men usually name their spouse.  Women, on the other hand, will commonly list a female friend or relative. Depending upon one person for all your companionship needs is bad for your health.  Studies show that widowers have a much shorter life expectancy when their spouse dies than widows in similar health.

Working longer is not for everyone, however.  Does Dr. Carstensen advocate subjecting workers in physically demanding, mentally demoralizing jobs to continue suffering for another 15 years? No, she doesn’t. As a society, we need to show compassion for those workers who need to retire at younger ages.  Protecting these workers is vital for a just society.

What is work?  When do I retire? What will my retirement look like? The questions are more complex than they were 20 years ago. The answers are as individual as you are.

1Carstensen, Laura L. (2011). A Long Bright Future : Happiness, Health, and Financial Security in an Age of Increased Longevity (Rev. and updated. ed.). New York: Public Affairs. ISBN 9781610390576.

Phoenix Arizona Financial Planner Teresa Bear 480-503-0050 Helps Phoenix Investors by Sharing Retirement and Investment Planning Tips.

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