Consider Having a Backup Plan

When looking ahead in anticipation of Social Security benefits, many people expect to wait until an average age of 66 to make a claim.1


However, Nationwide Retirement Institute’s fifth annual Social Security survey found many retirees start drawing Social Security at the earliest possible age of 622 — frequently the result of being laid off or health issues.


Thirty-six percent of respondents reported health problems got in the way of living the retirement they expected, and of those, 80 percent say health problems occurred as many as five or more years earlier than expected.3


This tells us something we already know but are constantly reminded of: Life does not always go as planned. Many financial professionals tell their clients one of the most effective ways to help ensure enough income throughout retirement is to continue working through their 60s. This may not be preferable, but it’s an option.


Others may plan to work longer but end up retiring for reasons beyond their control. It’s good to have a contingency plan. As an independent financial services firm, we help people create retirement income strategies using a variety of insurance products to custom suit their needs and objectives. Give us a call if you’re interested in finding out more.


It’s important to have a backup plan because there are many challenges for people working longer. For example, as jobs move further into technology, artificial intelligence and automation, new job skills are constantly required. It’s good to challenge the brain, but young college graduates typically have a firmer grasp on today and tomorrow’s technology — it’s a steep learning curve.4


A Washington Post article recently referred to the “gray ceiling.” As women have faced the “glass ceiling” as an obstacle to career advancement, age discrimination is sometimes manifested in the hiring, continued employment, development and advancement of older workers.5


Fortunately, recent workforce trends have made it easier for older workers to continue earning income past traditional retirement age. Many employers have embraced the work model of the “gig economy,” staffing up (and down) as needed with independent contractors. Older workers have proven to be well-suited for this type of employment due to their laser-like experience in certain roles, reliability and stability. A recent study suggests older white-collar professionals are driving the growing demand for gig workers among businesses in certain industries.6


While employers may embrace the gig economy to add and drop staff as needed, remember workers can do the same. Establishing yourself as a freelancer or independent contractor gives you the freedom to work as much or as little as needed.7 You can take off a month to go on vacation, or six months to fly south for the winter. You can also take on work only when you have big bills coming up, like homeowner’s insurance or property taxes.


A 2017 survey found one-third of future retirees are planning part-time work to provide at least 25 percent of their household income. Besides income, many gig workers ages 51 to 70 say a primary reason for freelancing is simply to stay active in retirement.8


Content prepared by Kara Stefan Communications.


1 Nationwide Retirement Institute. April 2018. “Social Security 5th Annual Consumer Survey.” Accessed May 10, 2018.

2 Ibid.

3 Ibid.

4 James Manyika, Susan Lund, Michael Chui, Jacques Bughin, Jonathan Woetzel, Parul Batra, Ryan Ko and Saurabh Sanghvi. McKinsey Global Institute. November 2017. “What the future of work will mean for jobs, skills, and wages.” Accessed May 1, 2018.

5 Susan Williams. Booming Encore. March 2018. “Older Workers Watch Your Head – Breaking Through the Gray Ceiling.” Accessed May 1, 2018.

6 Valerie Bolden-Barrett. HR Dive. Oct. 3, 2017. “Older workers — not millennials — are driving the gig economy.” Accessed May 1, 2018.

7 Elaine Pofeldt. Forbes. Aug. 30, 2017. “Why Older Workers Are Embracing the Gig Economy.” Accessed May 1, 2018.

8 Ibid.

This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.



Content obtained through a PR firm.

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