More options for leaving workforce

“Attention savers, this is not your parents’ retirement.” This could be the rallying call for anyone who sees retirement as a swift, sudden departure from working life at a specific age. We’ve entered the era of “Retirement 2.0,” with more choices regarding when and how you exit the workforce.

What’s changed? Many of us are living longer, healthier lives, so we may not want to leave work behind completely. Also, employers may try to retain employees longer, as part-time staff, consultants or mentors. This gradual transition may suit someone whose spouse has a different retirement target date or who wishes to stay active.

Meanwhile, for those who face early retirement — whether it includes attractive financial incentives or less generous terms that require returning to the job market — this might be your chance to start a new career or a small business.

Your future might not mirror your parents’ retirement and you may want to examine your personal priorities and research your goals, including the related costs and considerations.

With your financial advisor, you can also assess your savings and assets and revisit your investment objectives.

For example, if you want to delay full retirement, you may postpone when you draw income from your savings or apply for government benefits. Or, if you wish to retire early or finance a new business, you may need to accelerate your pre-retirement savings strategy.

By considering the options available today, you can make the best choices for the new world of Retirement 2.0.