RETIREMENT
While Sam has concerns that he ’ s “ overqualified ” for many job openings he sees , Emanuel says Sam should “ leverage his stability , proven longevity and commitment .” These are traits that younger “ job hoppers ” can ’ t always demonstrate . ( Incidentally , the word “ overqualified ” is no longer much in use , as it is seen as a form of age discrimination .)
Emanuel stresses that people should use the time between jobs productively — by volunteering , taking courses , getting certifications or freelancing . “ This approach will keep you busy and help provide valuable talking points when you meet with a recruiter or hiring manager ,” he says .
Those on extended job searches ( like Sam ) are likely becoming concerned about the “ gaps ” in their résumés since their last jobs ended . While that stigma was a clear problem in the past , attitudes
are changing . A survey by employment site Monster in late 2020 found that 49 % of U . S . recruiters believed résumé gaps had become more acceptable and were no longer just red flags . That ’ s especially the case in the current job market , where more than 11 million open jobs remain unfilled .
“ Having an employment gap isn ’ t a deal-breaker ,” notes Emanuel . “ But if you let it interfere with your mindset and self-confidence , it could prevent you from landing the job . Focus on highlighting your accomplishments and the valuable skills you bring to the table .”
What ’ s Driving You ?
Amy Ouellette , vice president of product at Vestwell , a retirement plan technology enabler , says that clients need to better understand the emotions driving their decisions . When many people left their jobs during the past few years , “ they were running away from a lifestyle that no longer worked for them .” Yet before these same people reverse course , she suggests they consider “ what are they running to ?” Presumably , it ’ s a job or lifestyle that ’ s different from what they had before .
Let ’ s get back to that notion of the “ sabbatical ” cited by Edelman . Ouellette calls it a “ gap year ,” which can be a useful time to gear down from a heavy load of responsibilities and ponder future outcomes . This chance to step away and reconnect with your values can take many months to work through and can help you “ visualize how you ’ ll spend your time and see if you can move towards what you really want to do ,” says Ouellette . Oftentimes , that may mean a different vocation than you had before .
Jim McDonald , a client of mine who
“ I ’ ve never been happier ... I wouldn ’ t have had the courage and clarity to make such a big leap if I hadn ’ t worked through my choices with a financial planner .”
— Jim McDonald
worked three decades at a national telecom company , needed the help of a financial planner to determine whether he could leave a six-figure job and start working as a substance abuse counselor .
Despite taking a sharp pay cut , Jim tells me , “ I ’ ve never been happier . In 31 years , I never talked about my job with my wife after work ,” he says . “ Now , we talk every night about how my day went .” He adds , “ I wouldn ’ t have had the courage and clarity to make such a big leap if I hadn ’ t worked through my choices with a financial planner .”
The Halfway Choice
For many clients , the binary path of full-time work or full retirement isn ’ t ideal . Instead , a shift toward part time may be ideal for people leaving a job or those looking to re-enter the workforce . For those still working but contemplat- ing a change , a “ phased retirement ” may be ideal . This allows clients to cut back on their hours while keeping some pay and benefits . The pandemic has ushered in a new era of more flexible work arrangements , and employers may be thrilled to hear that your clients can still contribute to the team , perhaps training successors to gradually learn the ropes before they fully retire .
According to a survey completed by consultant Mercer LLC , nearly 40 % of large employers now offer some form of phased retirement , up from around 17 % before the pandemic . Those workers most likely to be offered a phase-out will be those with specialized or hardto-replace skills .
For those clients now out of work and looking for a job , it may be helpful to take on projects or contract work , “ which enables the employer and employee to do a ‘ test drive ’ to see if they are a good fit for each other ,” says Emanuel . Oftentimes , “ this can lead to a more permanent parttime arrangement ,” he adds .
Also , people could always take their career and income into their own hands , launching businesses that provide flexible work hours and still-reasonable levels of income . Many are doing just that . The Economic Innovation Group notes that 5.4 million new business applications were filed in 2021 , around one million more filings than in 2020 .
There is a growing array of websites that connect employers and those seeking short-term projects . LinkedIn , for example , has a new feature that targets self-employed people in fields such as marketing , design , engineering and video editing .
Some advisors seek out retirement coaches to help , through organizations such as the Retirement Coaches Association , which offers the Certified Professional Retirement Coach designation .
The important point is that advisors can play a very powerful role in helping their clients navigate crucial decisions about when to retire and the financial implications of such moves .
DavID STERMaN is a financial advisor and freelance writer in new Paltz , n . y .
52 | financial advisor magazine | may 2022 www . fa-mag . com