Careers Archives – Page 3 of 8 – Unretirement Project

Choosing the Right Unretirement Gig

September 4, 2018 by Sharlyn Lauby 2 Comments

One of the reasons that we started this blog was to share our experience with blogging. Little did we know when we started HR Bartender that it would become something that we love to do while making a little money.

And my guess is we’re not alone when it comes to retirees or soon-to-be retirees wanting to find a little something they can do and make a little side income. But I will admit, blogging might not be for everyone. So, how do you find what makes sense for you?

Well, one of my favorite career sites is The Muse. They recently had an article about “How to Choose the Right Side Hustle for You”. Of course, the article is focused on anyone, but I thought this could be perfect for individuals thinking about their unretirement.

Developing a side hustle or side gig (whatever you want to call it), takes time. Just because you’re doing to do it on the side doesn’t mean you shouldn’t put any thought into it. Having a side hustle still involves business plans, licenses, taxes, etc. Here are three things to consider when choosing the right side work:

What do you want to do? Not simply “What am I doing now?” Or “What am I good at?” You might choose to do something completely different in unretirement. Maybe follow a dream you’ve had for years. But it’s worth taking the time to think about where you want to focus your energy because that might give you some indication of skills you want to polish up.

What are you willing to invest? Starting a side hustle might take some money. Some side hustles take very little. When I began consulting, all I needed was a desk and a computer. Both of which I had at home. Other side gigs might take saving and purchasing equipment over time. If you begin the process while you’re working, then you can budget for the expense while you still have income from another source.

How much time do you want to spend? The main reason I’m bringing this up is because how much time you want to spend doing your side gig could tell you if a marketing investment will be necessary. If you don’t mind starting slow and working your way to greater income, then little or no marketing might be okay. If you want to have a certain amount of income right away in your unretirement, then it might take a more robust marketing plan.

And let me add, these questions also allow you to decide if you like the side hustle you’ve chosen. That way, if you decide that the side hustle you thought was going to be so fabulous…well, isn’t, you have time and resources to change it.

It’s perfectly logical to think about having a side gig during unretirement. But the time to consider developing one is when you’re still working. That way the pieces are in place when you’re ready.

Image captured by Sharlyn Lauby while exploring the streets of Denver, CO

Employee Retirement Programs: Employers Need To Do the Right Thing

August 1, 2018 by Sharlyn Lauby Leave a Comment

I ran across this article in Talent Economy titled, “The Long, Winding Road to Retirement”. The article starts no differently than other articles about the predicament with Boomers and retirement: lack of company sponsored pension plans, dwindling employee savings, Great Recession impact, etc. But what surprised me about this article was the author’s feeling that it was a leap of faith that organizations would get around to doing the right thing because of their pressure to deliver profits.

I certainly hope that’s not the case.

I do agree that organizations are under pressure to deliver results – financial and otherwise. But the way that organizations will deliver those results is with people. Let’s add that the numbers tell us that there are more jobs than people to fill those openings. So, organizations need to find ways to keep older workers engaged and, in the workforce, longer.

Now, I’ll also admit that this challenge doesn’t completely lie with companies. Employees need to think about their retirement plans. They need to find ways to save and take advantage of plans like 401(k), individual retirement accounts (IRA), and Roth IRA. Individuals approaching retirement should be researching how Medicare and Social Security work, so they file for benefits at the right time.

But the way employers and employees can do the right thing is by being authentic and transparent.

Employers need to start thinking about their staffing needs and whether they will act to retain older workers beyond traditional retirement. If that’s their plan, they should have conversations with employees ahead of schedule, so employees can start thinking about their plans and whether they want to stay in the workforce longer.

In turn, employees need to start thinking about their retirement strategy. Do they want to consider working part-time or as a freelancer? Employees need to start building skills for that transition. Is that something they can do on their own or would it make sense to ask the company for assistance?

This isn’t an easy fix. Or an overnight one.

Organizations looking to meet and exceed their goals will need talent. Some of that talent will be individuals approaching retirement age. But if companies want to keep talent, they have to start thinking about offering jobs, salaries, and benefits that that are going to do that. Frankly, that means doing the right thing.

Image captured by Sharlyn Lauby while exploring the Wynwood Art District in Miami, FL

Workplace Financial Education Helps Retirement Planning

July 11, 2018 by Sharlyn Lauby 1 Comment

I ran across this article from the Center for Financial Security at the University of Wisconsin-Madison about “Workplace Financial Education’s Effects on Retirement Planning.” Whether you’re an employer or employee, it’s worth a read.

The gist of the article is that organizations have moved away from providing fully funded retirement programs, placing the responsibility for retirement planning in the employee’s lap. But employees aren’t stepping up their savings strategy. According to the Employment Benefit Research Institute (EBRI), one in four workers has less than $1,000 saved for retirement. This is despite efforts by employers and the government to make saving more attractive with matching contributions and tax advantages.

But one thing the University of Wisconsin article did mention was effective was workplace financial education.

Organizations that are offering employees access to financial education tools are seeing increased retirement account contributions. They’re also saying that employees feel their personal knowledge of budgeting and savings has increased as well.

As a general rule, we don’t learn about financial planning in high school or college. The primary place we learn about budgeting, saving, and managing money is either through friends and family … or at work. So, if organizations are going to give responsibility for retirement savings to employees, shouldn’t they at least provide a bit of financial literacy?

Financial literacy programscould easily be incorporated into the company’s wellness and well-being programs. The cost of providing a program would be significantly less than the savings from eliminating the company’s pension plan. I don’t know exactly how much, but I do think we can logically get to this conclusion.

Organizations want employees to do their best work. They won’t be able to if they’re worried about saving for retirement. Offering financial education is a way to help employees accept responsibility for future.

Meanwhile, if organizations do provide financial education, it’s up to employees to participate. You’re never too young to learn about retirement savings. When I was in school, and received my first Social Security card, I was told the Social Security program was designed to supplement my retirement savings. Keyword: supplement.

I don’t know what’s going to happen with pension plans or Social Security. I do know that it couldn’t hurt to start putting a retirement savings plan in place. Whether you’re an organization or an individual, financial education makes sense. Because the more educated we are about our finances, the easier it will be for us to start saving for the future.

Image captured by Sharlyn Lauby while exploring Las Vegas, NV

Organizations: Consider an Unretirement Employee Benefits Package

June 20, 2018 by Sharlyn Lauby Leave a Comment

I’d like to think that most of us have heard the statistics that people have the ability to live longer than ever. As a result, many employees want to stay in the workforce beyond the traditional retirement age.

But let’s face it, some employees aren’t prepared for retirement. Over the years, organizations have replaced pension plans with the 401(k). Those plans rely on employee contributions. And employees haven’t saved at levels commensurate with the loss of pension plans. So, some of the decision behind employees wanting to stay in the workforce longer is they need to stay in the workforce.

I recently ran across an article in Workforce Magazine titled, “Live to 100? Implications for Work, Employers, and Retirement”. The article goes into some details about why employees aren’t prepared for retirement, but it also suggests that organizations should consider providing resources to help workers transition into retirement.

As recruiting continues to be a challenge, it could make some business sense to create benefits programs for unretirement. Organizations want older workers to stay engaged and continue working. Employees want to contribute and save some additional resources for when they’re fully retired. The question becomes: What are the right benefits to offer? It can’t be things that jeopardize existing government programs. Here are a few things to consider (three of these you’ve probably considered plus one that might be a little ‘out of the box’):

Financial wellness programs: Organizations can make sure that workers are educated about their finances. They can prompt employers about extra savings opportunities under qualified plans and IRAs. Organizations can let employees sign up for automatic enrollment and savings plans. And offer financial counseling for employees approaching retirement.

Flexible scheduling: Employees like time off. Organizations can provide employees with part-time, seasonal, on-call, and contract positions. Older workers can reduce their hours gradually, which allows them to adjust their budgets accordingly. Organizations can use this planned reduced scheduling arrangement to create knowledge management programs and keep valuable historical and technical information.

Learning opportunities: Both employees and employers want this phased retirement strategy to work. Part of making it successful is keeping skills current. Just because an employee transitions to part-time doesn’t mean the company should stop making investments. The goal of this arrangement is for the company to benefit from the employee’s work and the employee to benefit by contributing longer. That happens when employees receive training.

Redesigned traditional benefits programs: There’s no reason that organizations can’t offer some sort of benefits package that is commensurate with the reduced hours that the employee is working. Sometimes we simply assume that only full-time employees are eligible for health care, wellness, disability, etc. Maybe it makes sense to include some of your organization’s unique perks like retail discounts or special services.

I’m hearing an increased number of organizations asking, “We have a lot of workers getting ready to retire. We need them to stay. We don’t have candidates to replace them. How do we do that?” The answer is start creating a benefit package for employees transitioning to unretirement. Talk with them. Find out what they want. This is exactly what organizations do to attract full-time employees.

Part-time positions are just as important as full-time work. It’s time to place some dedicated energy to creating unretirement jobs that can bring value to the organization.

Image captured by Sharlyn Lauby on the streets of San Francisco, CA

5 Unretirement Skills That Everyone Needs

June 6, 2018 by Sharlyn Lauby 1 Comment

I was reading an article in Workforce Magazine titled, “Meeting the New Faces Who are Shaping Employee Retirement”. It’s an interesting read you might want to check out. My takeaway from the article is that employees thinking about a phased retirement strategy need to start thinking about the skills that they will need to make this transition. So, I decided to come up with a list.

This list isn’t just for individuals. Organizations looking to build a phased retirement strategy and encourage employees to transition from full-time to part-time could use this list to develop a training program that will help employees get those skills.

Financial wellness: Let’s face it, money is a consideration when we’re talking about any employee transitioning from full-time to part-time. Budgeting is an important skill. In addition, there are opportunities to educate workers on retirement programs, government programs, and the timing of benefits so employees maximize their earning potential.

Time management: One of the reasons that organizations are becoming more open to phased retirement strategies is because they need employees. Which means they need productive workers. Employees need to be prepared to be productive in a part-time status. That involves managing your time well. If employees haven’t had to worry about deadlines and project plans for a while, it might be time to get some training in that area.

Wellness and well-being: Another moment of reality we must face is that as we get older, we must think about our health. Possibly more than we did when we were younger. Both organizations and individuals should think about the opportunities available to educate about being proactive with our health – exercise, nutrition, mindfulness, etc. We will be able to work longer if we’re physically and mentally capable.

Technology: You knew technology would be on the list. But I’m not talking about “how to learn Facebook” type of technology, although that’s important. Employees considering phased retirement could be asked (or make the request) to do remote work. This means employees need to know about computer security, basic troubleshooting, logging into networks, etc.

Mentoring: Employees need to be realistic and realize that at some point they won’t be working anymore. And that the organization would like for your knowledge to be passed along to another worker. One way to do that is through a mentoring relationship. But being a good mentor takes some skills – good communication, patience, etc. It would be a win for everyone to teach employees how to be good mentors.

Phased retirement strategies – whether they’re initiated by the organization or the individual – need preparation. They will be successful because employees are prepared for the reduced income, schedule change, new responsibilities, and more. Learning and development programs can help employees get ready.

Image captured by Sharlyn Lauby in Las Vegas, NV

Retirement: Should We Focus on Age or Finances

May 30, 2018 by Sharlyn Lauby 2 Comments

I ran across a very interesting CareerBuilder survey recently which indicated that 53 percent of workers age 60+ are postponing retirement. Four in 10 workers (40%) said they don’t anticipate retiring until age 70 or older.

At first glance, I thought this could be very good news. Employees might feel engaged in their work and feel no need to retire. Organizations could be thrilled that workers with skills and knowledge are staying in the workforce and they aren’t facing labor shortages. Unfortunately, that wasn’t the reason that CareerBuilder cited in their survey.

The survey said that workers were postponing retirement because they were unsure about how much money they needed to retire. When asked how much money workers think they’ll need to save in order to retire, they said:

Honestly, I wasn’t very surprised by these numbers. According to the latest findings from the Federal Reserve, nearly half of Americans don’t have enough cash on hand to cover a $400 emergency. If that information is true, then it’s not surprising that people don’t know how much money they need to retire.

Even if we’re relying on Social Security (and many of us are), it’s important to start working on our financial plan for retirement. The CareerBuilder survey said that only 1 in 4 workers contribute to a 401(k) or retirement type plan. Again, how will we know what it takes to retire if we aren’t saving?

It also raises the question; how will we know when we are ready to retire? Is it when we turn a certain age OR when we have the money? More importantly, what will we do if the answer isn’t in our control. For example, what if our physical health requires us to “retire” before we have our financial plan in place?

I’m not sure that I have all the answers. But I do know these are questions that we have to start asking ourselves. How will we know when we’re ready to retire? What’s the measurement? And once you determine that, do you have a plan in place to get there?

Image captured by Sharlyn Lauby in the Wynwood District of Miami, FL

More Individuals Are Choosing Freelancing in Semi-Retirement

May 23, 2018 by Sharlyn Lauby 6 Comments

I ran across an article recently on LinkedIn talking about the latest statistics for the gig economy. It’s worth checking out. My takeaway from the article is that an increasing number of Baby Boomers in senior level roles are opting into freelancing or consulting as a transition to their semi-retirement.

Think about it. Instead of going from a regular full-time job to retirement, individuals are making several smaller moves toward retirement. Full-time job TO full-time freelancer TO semi-retirement THEN unretirement AND retirement.

The good news is that I believe organizations are very open to this type of new career transition plan. Granted, it’s very different from what they’ve done in the past. And, it will probably involve some sort of trial and error in terms of getting the conversations right with employees and coordination in making it happen. Nonetheless, I think with the challenges that companies are having in finding and keeping talent, it makes a lot of sense.

But for individuals looking at the next decade of their careers, it means they need to think differently too. It’s a big enough decision going from full-time to retired. Now, we’re talking about several small moves, all of which need some level of planning.

We should start thinking about career transitions earlier. You can’t just flip a switch and become a freelancer or consultant. It’s true that you would have the knowledge and skills to do the work. And it’s pretty easy to set up a home office. The part of freelancing and consulting that takes time is building a network. So, if consulting is in your future, you must start building the marketing plan.

Lifelong learning has never been more important. When you become a freelancer or consultant, you are in charge of everything. If you’re used to calling the technology department every time your computer goes on the fritz or having someone proofread all of your communications, those things go away when you leave Corporate America. Sure – you can hire someone to help you but that can get pricey.

It will be necessary to financially plan for these transitions as well. Freelancing can be terrific in terms of having time to travel, pursuing a hobby, or spending time with family. On the other hand, freelancing means you’re responsible for all of your income, including benefits like healthcare and vacation. So, moving to a lifestyle where you have more control also means you’ll want to make sure you can afford it.

One of the ways that individuals can transition toward their retirement lifestyle is by spending some time as a freelancer or consultant. Organizations seem to be very willing to consider these arrangements. But it needs to work for everyone. Companies want individuals with knowledge and skills. Individuals want flexibility and fair compensation.

To make this successful, both companies and individuals will need to start planning earlier and communicating more often.