How solo gigs can give you a stronger retirement

Retirement


Schlesinger was inspired to write the book after seeing many Americans rethink their careers during the pandemic. “So many people are doing transitions and big resets,” she said.

Many Americans are surprised to have to quit their full-time jobs sooner than expected. Age discrimination, health problems, disability or unemployment, or the need to care for a loved one may intervene.

A survey by the Institute for Employee Benefits found that 46% of retirees this year said they left early. And there is a huge gap between expectations and the reality of how long people will keep working. While one in three workers told researchers they planned to retire after age 70 or would never retire, only 6% of retirees reported actually working past age 70. rice field. Only 11% of workers said they planned to retire by age 60, compared to 33% of retirees who said they had retired by age 60.

For these people, entrepreneurship offers one route to staying in the game.

“I don’t think people really know what their retirement will look like,” says Craig Copeland, director of research on wealthy benefits at EBRI. Twenty years later, they haven’t factored that event into their retirement plans. ”

For those accustomed to working full-time, not getting a regular paycheck may be the scariest change that comes along the entrepreneurial path. It requires careful planning. Most new businesses need time to generate revenue, so be sure to start with a cash cushion to pay for living expenses while you wait, says Freelance, who started a business that combines these pursuits eight years ago. Lance financial writer and compensation-only financial planner Roger Wallner advises.

Walner said people should have enough money to cover “three months to a year’s worth of expenses to make sure they can pay their mortgage.” However, your specific needs will depend on the type of business you start.

Schlesinger, who reports on personal finance topics for CBS News, advises getting a handle on all the resources currently at your disposal: salaries, bonuses, fees, savings, emergency funds and even retirement accounts. increase. Next, sort out your debt and other debts.



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