Encore Careers: A Senior’s Guide

For some, going back to work after retirement is a matter of choice. For others, it may be a necessity.

Ready or Not

After a long and successful career, many of us look forward to retirement. We may have a bucket list in hand along with dreams of sunshine and seashores. But for some, retirement comes too soon.

Understanding Encore Careers

It’s not uncommon for new retirees to realize they simply aren’t ready to kick back and relax.

For some, returning to work may be connected to a desire for intellectual stimulation or the desire to give back. But for others, a lack of sufficient income leads to a return to the workforce.

An encore career may allow you to do something you've always wanted to, whether that’s tutoring, dog walking or working at a library. If you can’t decide, consider speaking with an experienced life coach or social worker who’s worked with seniors.

Dr. Colleen Lucas, a registered psychologist with Calgary Career Counselling, offers the following suggestions:

• Look at an encore career as an opportunity to choose the kind of work really want to do.
• Make a list of passions you’d like to explore or a hobby you’d like to enjoy.
• Consider your personality. For example, if you’re introverted, working behind the scenes may be a better fit than a sales position.
• Give yourself permission to try something new. If it doesn’t work out, try something else.
• Talk to someone who’s working in the job you’re interested in pursuing.

Making the Right Choice for You

Once you know what you're looking for and you're in the right frame of mind, it's time to consider logistics. Jason Heath, a CFP^® professional with Objective Financial Partners in Toronto, offers these tips for transitioning back into the workforce:

Make a plan

When you’re returning to work for financial reasons, determine how much additional income is needed to reach your goals. Whether you need to pay off credit card debt, pay down a mortgage, or cover monthly expenses, planning is key.

Consider full- or part-time

Be sure your work is truly fulfilling and that you’re not missing out on family and fun. Look for the sweet spot when deciding whether to take on a full- or part-time job.

Weigh the trade-offs

Carefully consider all the financial implications of an encore career. If you have a healthy pension or assets, you may see a large part of your government retirement income reduced if you go back to work. The best way to get a clear picture is to speak with a CFP professional or QAFP^® professional who can help you understand the trade-offs.

Consider tax implications

Income tax is not withheld from Canada Pension Plan and Old Age Security unless an individual requests it. There may be little tax withheld in a part-time job and a full-time job may not withhold enough to cover all the income you received.

Getting the Help You Need

Returning to work after retirement can be a rewarding and beneficial experience. A professional financial planner can help you find creative strategies for a financially satisfying retirement.

To find a CFP professional or QAFP professional to guide you in your encore career, use our Find Your Planner tool.