Retirement occupations

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Rising life expectancy often requires retirees to have a second career. Few tips on how to go about it.

Words like 'retirement' and 'occupation' seems diametrically opposite to each other. However, with increasing life expectancy and rising cost of living, it is almost becoming a necessity for individuals to have a second career after retirement. This need gets further fuelled as life expectancy in India is going up.

That is, an individual who lives till 60 is expected to live till 78, thereby inducing the requirement to pursue activities which will enhance the retirement corpus. As per a study in the US, just by earning a quarter of your monthly requirements for six years after retirement, you can reduce the capital required for a 25-year corpus by 11 per cent.

While there is definitely a distinct possibility that each retiree may have a different approach to this second career, the basic guidelines stay the same "� pursue a career that is not too demanding on your health. The choices are many. Self employment, consultancy, teaching or any other that suits you.

Setting up a business would obviously lead to requirement of capital "� a proposition that you should not go overboard with. Meaning, do not eat into your savings too much to invest in a venture, even if you believe in it. A fresh new start, especially after retirement, needs to be looked at with scepticism as far as financial burden on you goes.

However, if the preferred option is going to be self-employed, then start preparing a business plan at least three to five years before retirement. Have a proper estimate of funds that would be required for the venture.

Then there would be infrastructure needs like premises for operations and hiring of others involved, among others that need to be properly planned. For a safe first retiree, consider consultancy in the same industry. Here, you will not be eating into your own funds.

Also, this could turn out to be a win-win situation for both the company and you. This is because companies find it cheaper to hire the retired as consultants as the payout is lesser than the ones who are still in the pre-retirement age. And for you it is employment in the same industry where you have domain expertise and have the necessary tools to deliver.

Further, it becomes a classic case of not having to learn new tricks at an old age. So there is a definite ease in the ability to perform. Whatever you choose to pursue, ensure you enjoy the activity.

Also, it is advisable that you do not push yourself into a rigid eight-hour job. Working into retirement is not only financial prudence but is also a great way to keep yourself occupied and boost your self-esteem. It will make you feel useful and needed.