Finding your encore career later in life

8:49 AM, Aug 14, 2013   |    comments
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GOLDEN VALLEY, Minn. - As Americans are living longer, many are working longer. While many simply stay in their jobs longer, others are pursuing second acts - starting "encore careers" as the next chapter in their professional lives.

Dan Ament, Financial Advisor with Morgan Stanley joined KARE 11 Sunrise to discuss these new career opportunities.

Planning to start a business? - AARP Survey
10% of workers age 45-74
15% of same age group already self-employed

A recent survey by AARP found 10 percent of workers ages 45 to 74 plan to start a business and 15 percent workers in this age range are already self-employed. Some start a business due to a job loss, others had already retired but weren't ready to fully stop working. On average, self-employed workers in their 40s or 50s may spend nearly two decades working for themselves, the AARP study found.

Pursuing altruistic work and a paycheck at the same time Surveys have shown that one of the motives for starting a business or changing careers is the pursuit of something greater than a paycheck. Making a difference by helping others from a variety of capacities can deliver a paycheck but more importantly, help those you serve each day.

The benefits to your balance sheet While the idea of a longer career may not be appealing at first blush, contemplate the benefits cited by those ahead of you who feel differently. For those working longer by necessity, the added years provide you additional time to save more for retirement and allow your nest egg to grow by delaying withdrawals. In addition, given the increasing costs related to health care coverage, waiting to retire after qualifying for Medicare offers some significant savings. There are also those who work longer by choice; enjoying the continued challenge, mental engagement and social interaction of their daily work.

Dan also addressed the question of whether working later in life would be an issue with Social Security benefits.  The answer? It depends on when you take those benefits. Click here for more information.

There's also more information available on the Social Security website.

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