Saving Some of Your Part-Time Employment Income in Retirement for Later

In today’s relatively tight labor market, some employers have been looking to fill employment positions by hiring their retirees on a part-time basis.  The current low unemployment environment presents an opportunity for retirees who either need additional income or who may be disenchanted with full retirement to negotiate a potentially more rewarding and more balanced work relationship with their former employer on a less than full-time basis.  This opportunity was discussed in the New York Times article, “In a Tight Labor Market, Retirees Fill Gaps their Previous Employers Can’t” (subscription may apply). 

Ten Possible Ways to Increase Your Current Retirement Spending Budget Under the Actuarial Approach

As soon as the ink had dried on our last post, in which we reminded readers that the only real way to guarantee the amount of retirement income you can expect to receive is through the purchase of life annuities, we started receiving feedback that we were being too conservative, and we should be giving equal (or more) time to self-insuring and more aggressive spending strategies.    In response to this feedback, this post will discuss more aggressive spending strategies and ten ways for you to possibly increase your current spending budget using the Actuarial Approach.  

There are No Guarantees if You Self-Insure Your Retirement

Periodically, we believe it is important to remind our readers that self-insuring one’s retirement is a risky business and the only real way to guarantee the amount of retirement income one can expect to receive from one’s accumulated savings is through the purchase of life annuities.  We are not necessarily recommending that you should do this (we don’t make investment recommendations); we are simply pointing out that there are risks associated with self-insuring that should be considered when developing your investment/spending strategies for retirement.