It’s never too late to chase new dreams
Retirement can be a chance to reshape your life, shifting from years of work obligations to new opportunities for growth and fulfillment. Like Kotb, who recently made the choice to pivot her career, some retirees find a fresh sense of purpose by starting new projects or even exploring passions they’ve never had time for before.
Kotb makes it clear that she already had an idea of what she wanted her new chapter to look like before making the decision. For example, Kotb plans to venture into the wellness industry and is in the early stages of developing a smartphone app focused on wellbeing.
“I want to work in that space. I want to start things, I’ve got things that are percolating inside that I’m going to hopefully have, you know, fully formed soon,” Kotb said.
Gerika Espinosa, a certified financial planner, emphasizes the importance of finding joy in work, even in retirement.
“There’s a lot of fallacy that we can only have jobs we don’t enjoy,” she told CNBC. ”[Getting over that] helps people a lot because a lot of people in retirement struggle with purpose in general.”
Whether it’s a part-time role that provides the remaining income you need to live comfortably, a new business venture or taking on a new hobby, retirement can be a time to pursue meaningful work on your own terms.
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Read MoreAre retirees choosing to work — or forced?
According to CNBC's August 2024 Your Money retirement survey, 17% of retirees choose to work, while 11% are only working because they have to and 71% have left the workforce entirely.
While some retirees, like Kobt, are fortunate enough to step back and pursue personal interests, a growing number of Americans are working well past the traditional retirement age. Over the past 30 years, the average retirement age has increased from about 62 to 65 according to the American Enterprise Institute.
Improved health has encouraged some seniors to remain in the workforce longer, but potential cuts to Social Security taxes could also cause lower-income beneficiaries to involuntarily extend their working years if faced with a benefit reduction.
It’s safe to say, not everyone is continuing to work by choice. Financial necessity is a significant driver for many, as they face greater economic pressures — including inflation.
Data from the Pew Research Center supports this reality, revealing that about 19% of Americans aged 65 and older were employed in 2023 — a near doubling from 35 years ago. Rising healthcare costs and insufficient retirement savings are some of the challenges pushing retirees to remain in the workforce.
CNBC’s International Your Money Financial Security Survey echoes the financial shortfall that many face, revealing that 53% of respondents feel behind on their retirement planning.
Preparing for the leap of faith
If you’re worried about being prepared for your own retirement, being proactive with your finances can keep you on track. For example, making regular, fixed contributions to a retirement account such as a 401(k) or IRA and investing within it can help you build compound interest over time — and yes that may require a monthly budget.
Depending on how you invest, you can also potentially benefit from the S&P 500’s average annual return of 10% over the last century.
Checking with your employer to see if they offer a 401(k) matching program can also help you take full advantage of its contributions and boost your savings.
With careful planning you can create a retirement plan that offers the room to choose whether staying in the workforce is ultimately right for you.
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