Retirement dropouts

Expect to see increasing articles in the media over the next few years about baby boomers who decide to work beyond traditional retirement ages for reasons that are not always financial.

The reality is that many people in their sixties and beyond gain a large degree of satisfaction from remaining involved in the workforce – perhaps at a slower pace – longer than once intended.

A recent New York Times article, Of the Right Age, But Can't Seem to Stay Retired, traces the tales of several individuals who tried retirement, had second thoughts and re-entered the workforce. Journalist Elizabeth Olson refers to them as "retirement dropouts".

While Olson writes that many older retirement dropouts continue to work to pay their bills, others just work for the sheer satisfaction.

One of the case studies in The New York Times article is a food industry executive aged 66 who twice tried retirement and twice returned to work. "I failed miserably at retirement," says this ex-retiree. He wanted to do more than travelling and polishing his golf game.

Today, this self-described failed retiree owns a fast-growing pizza chain with ambitions to open more than 1000 outlets.

InTheBlack magazine, the flagship publication for accountancy body CPA Australia, recently published a feature, Reluctant Retirees, by journalist Michael Laurence.

The article opens with the story of an older couple, now aged 67 years and 70 years, who progressively swapped the ownership of a medium-sized industrial business and an inner-Sydney lifestyle for an organic vineyard located 300 km west of Sydney.

This couple is described as representing a "global trend for people to remain in the workforce well past traditional retirement ages, often reducing their workloads and switching, if possible, to occupations that reflect their personal interests or passions".

There are plenty of considerations for those looking at extending their working lives including the state of their health, career and, of course, their retirement savings.

Not all of us have the option of extending our working lives even if we want to; health concerns, maybe a lack of suitable employment opportunities and other personal circumstances obviously can act as barriers.

From a financial aspect, a longer working life provides an opportunity to save more for what will be a shorter retirement. And a shorter retirement is less costly.

Laurence's article quotes a financial planner as saying that although many of his older clients can afford to retire, many do not want to spend their time "sitting on the beach 24/7".

This is something to think about as you a take a few days off over summer and perhaps contemplate your working future – maybe from the comfort of your beach chair.