Unretirement

From the Golf Course to the Start-Up

Retirement conjures up images of saying good-bye to one’s co-workers at around age 65, moving to a sunny state and playing golf. Increasingly, that image no longer holds true. Many of today’s older workers elect to remain in the workforce longer. Some stay with their companies, some try “encore careers” and others start their own businesses. Today, as many as 60% of older workers who leave a full-time career move into part-time work, do freelance tasks or take a “bridge” job. Some worry they haven’t saved enough for retirement. Looking to make a difference, others turn longtime passions into new careers. This is the picture of “unretirement” – working a few years longer and then doing something different, but rarely deciding to do nothing at all.

At one time, many US workers had to retire at age 65. “Mandatory retirement” ended for most jobs in 1986. The idea would make little sense today when older workers are healthier and better educated than in the past, and jobs often don’t require a lot of physical labor.

Postponing retirement brings financial benefits. Delaying retirement from age 62 to age 70 reduces your “required...