Post-Career but Pre-Retirement? How to Prepare for Your Second Act
If you’re nearing the end of your career, it may be time to think about what comes next. A retirement spent relaxing at home may sound pleasant to many. But what if you’re not quite ready to settle down? A traditional retirement right after a long career isn’t the right fit for everyone.
Many older adults continue to work in some capacity well into their 60s. In 2024, nearly 20% of Americans age 65 and older were working or looking for a job.1 The reasons for remaining in the workforce are complex. Some older adults need to supplement their retirement savings, while others see a second career as an opportunity to find greater fulfillment. Whatever your reason, this guide can help you prepare for the next chapter.
Take a look at your finances
Before you make a major career change, it’s important to consider your financial health.
Tackle your debts
As you near the end of your first career, outstanding loans and credit card balances may hinder your ability to retire or take a lower-paying job. Before you take the next leap, try to get your debt under control.
If you’re struggling under the weight of multiple bills each month, you might consider a debt consolidation loan. Consolidating your debts into a single predictable monthly payment may help you lower your monthly expenses and more easily manage your bills.
Alternatively, you might consider options like refinancing or working with a nonprofit credit counseling agency. The best approach depends on your financial needs and longer-term goals.
Assess your retirement funds
Whether you plan to work in some capacity for a few years after you reach retirement age at 62 or hope your second act spans decades, it helps to know how much money you’ll need to get by. Take stock of your current retirement savings by checking accounts like your 401(k)s or individual retirement accounts. Then, determine the Social Security retirement benefits you could claim if you retired at your current age and the amount you could draw if you waited until age 70, when you’d qualify for the maximum benefit.2
With a clearer picture of your retirement savings and eligible benefits, you can assess whether you need significant income to meet your needs or if you could accept a lower-paying job that’s more fulfilling, launch a new venture or volunteer full-time.
Downsize if necessary
If your current living costs are high, downsizing before making a major career change could be a smart move. Moving to a smaller home or trading in a costly vehicle could lower your monthly bills, supplement your savings or both.
Reducing financial pressures by cutting expenses may give you more flexibility to pursue your passions.
Leverage your skills
You’ve spent decades honing a valuable skill set. As you embark on the next chapter, consider how you might apply those skills to a different industry or a new type of role.
For example, maybe you’ve spent decades in marketing at a major corporation. As a strong persuasive writer and communicator, you might find a successful second career in non-profit fundraising. On the other hand, maybe you want to flex the creative muscles you’ve built developing ad campaigns by pursuing fiction writing or graphic design.
A new perspective on the work experience you’ve built may open unexpected doors.
Pursue your passions
Your second act is an opportunity to recenter your life on the interests and causes you may not have had as much time to explore throughout your career. Reflect on your passions; consider hobbies you love, social justice issues that matter to you and topics that have captured your curiosity. How might they translate into jobs, business ventures or volunteer opportunities? Try to think about options that align with your current needs and capacity:
- If you love baking, you might consider working at your local grocery store’s bakery counter or launching a business making cookies and cakes from your kitchen.
- If you’re passionate about animal welfare, you could start an animal rescue in your community or join the board of a local animal shelter.
- If you play music in your spare time, you might offer beginner guitar lessons, start a band or apply for a job as a music teacher at a high school.
Maybe you’ve always been interested in a certain type of work that requires a certification or degree you don’t have. Depending on your financial needs, you might consider taking time between your careers to work on new certifications or further your education. A personal loan calculator may help you determine whether taking out a loan could help you manage household expenses while you focus on your studies.
Setting the stage for a new adventure
For a growing number of older Americans, retirement no longer means bowing out of the workforce. Instead, it’s an opportunity to discover a renewed sense of purpose, bolster your savings and take on new challenges. The time you spend preparing can help you find joy, excitement and fulfillment as you enter the next stage of your life.
