section 1 - The American College Online Learning Center

(3) Retire at age 67 and assets are sufficient through life expectancy (age 90).c. Take the same fact pattern and add $35,000 a year of part-time employmentincome after retirement.(1) In this example, if the individual retires at 65 and earns $35,000 a yearthrough age 70, the income shortfall does not occur until age 86 (withoutthe part-time income the shortfall occurred at age 81).(2) If retirement is deferred to age 66 and the individual earns $35,000 a yearthrough age 70, assets are sufficient through life expectancy (age 90).d. Part-time employment allows the client to(1) Spend down assets more slowly(2) Defer Social Security benefits(3) Protect the client from having to sell assets when market values are down5. The practical side of working at an older age (Video: Working During Retirement: Littell,Rappaport)a. Some older workers are downsized or otherwise forced to retire.(1) They may have planned on working longer before retirement.(2) Studies show that at least 4 in 10 people end up retiring earlier thanexpected. Reasons may include:(a) Loss of job(b) Health issues(c) Having to care for a family memberb. Some people consider themselves retired, but want to work part-time.c. Those wanting to work longer must think about the things that make thememployable.(1) Keep skills up to date.(2) Stay culturally up to date to better fit into the work environment.(3) Maintain professional networks.d. What are the different options for working during retirement?(1) Find part-time work.(2) Be a contractor and work as a consultant for your former employer orsomeone in the industry.(a) Planning Point: Planners should help advise clients about contractsinvolved when working as a part-time independent contractor.e. There are specific organizations that deal with the issue of opportunities for peoplethat want to work in retirement.(1) Organization called retirementjobs.com provides information about jobopportunities for those over age 50(2) Organization in the Midwest called Your Encore (www.yourencore.com)helps engineers, scientific people, pharmacists, etc. (generally retirees)get opportunities to do projects or consulting for big companies.(3) Organization called Encore Careers (www.encore.org) focuses on jobs inphilanthropy and social purpose jobs.3.6