Press Room

Tips on working into ‘retirement’

Money Management

Monthly financial advice
from the MACPA

For release: January 2009

Once upon a time, “retirement” meant quitting work forever at age 65. Today, that description no longer applies to many of the millions of Americans who are at or near traditional retirement age.

By 2016, workers age 65 and over are expected to account for 6.1 percent of the total labor force, up sharply from 3.6 percent in 2006, according to the U.S. Bureau of Labor Statistics. Some of these workers are people who don’t want to be idle and are interested in beginning a second career, while others continue to work into the traditional retirement years because of economic necessity.

No matter what the reasons may be, the Maryland Association of CPAs offers these suggestions for any of the millions of people who are changing the definition of retirement.

Keep a positive attitude

Layoffs, declining real estate values, investment losses to retirement savings accounts and dwindling pensions have forced many people to put off retirement much longer than they might have expected. That’s usually a disappointment, but it’s possible to enjoy this situation more if you look at the bright side.

Despite a troubled economy, there should be many opportunities to work, since the generation that is now retiring is much larger than the one replacing them. In addition, many people relish the chance to remain active, learn additional skills and chalk up new experiences. If you focus on the upside during your job search and when launching a new career, you’ll have more fun with it and probably come off as a more appealing candidate in job interviews.

Be aware of your advantages

After decades in the workforce, you have a lot to offer an employer.

First, older workers are by definition more mature than those starting on their first jobs, so they are likely to be more dependable and have more experience in a professional setting. Second, while young workers might job hop in order to add more experience to their resume, older employees generally are more likely to stay in place. Both of those attributes are very attractive to employers, so be sure to emphasize your maturity, life and professional experience and reliability in any job interview.

Do some research

If you are looking for a second career or simply a job to boost your income because of shrinking retirement savings, try to focus on the industries with the best outlooks and opportunities.

The Bureau of Labor Statistics’ Career Guide to Industries, for example, discusses training needed for specific jobs, the earnings and working conditions you can expect and what your job prospects might be. You can find the guide and other employment information at the Bureau’s site at www.bls.gov.

After you have determined where the opportunities exist, then consider what kind of training you’ll need, how much it will cost and how long it will take. This should give you a good sense of the most appealing and realistic prospects.

Stick with your current job

If you believe that you will need more money than expected in retirement, it’s a good idea to stay in the position you have now rather than retiring and finding a new one. Those who work longer typically qualify for higher Social Security benefits, as well as have the chance to sock away more retirement savings. A few years longer on the job could increase your retirement income significantly.

Turn to your CPA

Your local CPA has the expertise to answer your questions on preparing for retirement and managing your money at any stage of life. Contact him or her for advice on any pressing financial issues.

Only CPAs are equipped to address your full range of financial needs with integrity and insight. In Maryland, CPAs must pass a rigorous two-day examination, adhere to strict ethical and professional standards, and, beyond college, complete 80 hours of continuing education every two years to be certified by the state — accountants do not.

Your doctor is certified; your lawyer is certified. Make sure your accountant is a certified public accountant.

For CPA referrals in your area, contact the MACPA at (410) 296-6250 or click here.

The Maryland Association of Certified Public Accountants (MACPA) is a statewide professional association that provides leadership, information and services for its nearly 10,000 CPA members, who are employed in private practice, industry, government and education. CPAs are business and financial professionals who have passed a rigorous two-day examination in order to be licensed by the state. CPAs are committed to protecting the public interest, and must adhere to stringent ethical and professional standards and continuing professional education requirements.

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