Finding a retirement plan that is suitable for you can be stressing, considering that you probably take up most of your income in rent, insurance and bills and also because retirement is something way ahead in the future. But the sooner you start your retirement plan, the better, so let's dive into every possibility. Plus, in this article you will also recieve a list with five of the best post-retirement job opportunities.
Most companies will set up a 401(k) retirement fund with matching contribution benefit, but that is not the only option available. There are actually many other retirement plans and it is always a good idea to get familiar with them. This is your future income for when you retire to start living your golden years in a relaxed way:
1. Individual Retirement Account (IRA)
If you are under 70, you are eligible to open an IRA account. You can make regular deposits and it is really easy to start saving. The annual limit is $5,500 and you can start your IRA account with a bank, life insurance company or a mutual fund.
2. Roth IRA
It works just as the traditional IRA. The only difference is that you can make contributions after the age of 70 and you can even keep your money in the account. Also, Roth IRA plan has a higher tax break compared to the traditional IRA.
3. Simplified Employee Pension (SEP)
SEP plan is a variant of the traditional 401(k). Employees of any industry are eligible to set-up an account. You can contact your HR department to see if this option is available. Contributions to SEP Plan are only by employers, so there are no salary deferrals to avoid taxation. The contribution limit is 25% of your salary or $53,000.
4. Defined Benefit Plan
This plan provides a fixed retirement benefit. There are three different plan types so you need to check with your employer which is the one you get. You will get started automatically based on the number of years you work for your employer. It can only be distributed at the age of 62, though some employers have an early retirement option available.
Always check your options with the Human Resources Department of your company. They will provide you with all the information and guidance for you to get started. And keep in mind: a retirement fund is your investment for your own future!
FIVE POST-RETIREMENT JOB OPPORTUNITIES
Although many workers are looking forward to retire and never work again, others aren't quite sure if they are ready for it. As life expectancy expands, you may reach the retiring age and still want to keep on working. Keeping a job after your retirement age does not only mean you will have an income for a few more years, but it will also grant you health insurance benefits. Moreover, working for longer will also postpone taking Social Security benefits. This means that you will receive more money once you actually decide to retire.
So, you may want to rethink your retirement plans. But, do you know what options you have? Take a look at the best five opportunities that will allow you to keep on working and doing what you like most!
1. Stay at your current job
Even though you have reached the retirement age, you can still negotiate with your current employer to make some adjustments and stay a bit longer. This could be considered as a win-win situation, as you will keep doing the job you like and your employer will count with your experience for a few more years. You may even have enough time to properly train your successor!
When negotiating, analyze which options suit you better. For example, switching to part-time hours, reducing your responsibilities or even working from home.
2. Coach younger adults
You can share your experience and wisdom with younger adults! They need your knowledge to learn and improve in their jobs, so you can become their mentor and offer them a helping hand. You can either do this for free or charge for it and even gain some extra money. If you like being a coach you can get a certification and become a professional career or personal coach.
3. Work for a Nonprofit organization
Although this option may not include a salary, helping others by doing what you love can be truly rewarding. Start by volunteering at a nonprofit organization event, get to know them and then offer to work with them. Your experience and know-how can be really helpful.
4. Become a consultant
You have been working for years and know your industry like the back of your hand, so you can capitalize your knowledge and become a consultant. Start by doing some networking selling your services as a consultant. This way, your colleagues in the industry can contact you and even recommend you.
5. Become a substitute teacher
If you always wanted to teach and you never had the chance to do it, then it is time! The best way is to start as a substitute teacher. Take into account that it will probably not be day-by-day gig, but you will also enjoy having some free time.