Work Differently: Redefining Financial Independence

In today’s world, traditional retirement is becoming increasingly less common. Close to 20% of America’s current workforce in 2022 is age 65 or older. Of course, some people aren’t financially secure enough to retire at that age. However, a large number of people who have the financial means to retire comfortably are actively choosing not to do so. 

This could be for a number of reasons. The dawn of the virtual working age in light of the coronavirus pandemic has certainly fueled the notion that working differently is indeed possible. People who have been tied to conventional working environments like a 9-to-5 schedule, or a formal office, may have gotten the taste of what working remotely can look like and enjoy it.

Others still have found that, as the world has been forced to become a notably more virtually connected place, being able to pursue and scale entrepreneurship is much more accessible than it has ever been. While the transition to remote work came with its hardships, it also sparked the idea that there was “something else” out there, and that it might be worth pursuing. 

So, what does it mean to go after a non-traditional retirement? How are people opting to work differently instead of looking toward a work-less next chapter? 

Non-Traditional Career Paths

In my experience as a financial planner, my clients tend to go one of three directions when it comes to retirement:

  1. They choose a traditional retirement arc where they finish out their career in one industry, then opt to stop working once they’ve accumulated a large enough nest egg. They often will spend newfound free time with family and friends, or pursue hobbies.

  2. After spending many years in an industry they love, they opt to parley their career experience as a W2 employee into some form of entrepreneurship. This might mean that they decide to freelance, become a consultant, or even start their own business.

  3. Throughout their career, they’ve built many meaningful relationships and connections in their industry of choice. However, they don’t want to continue pursuing that path. Instead, they’ve decided to do a full 180° turn, and follow their passion toward a completely different industry. These “career changers” choose to start from scratch to pursue something that truly calls to them.

While some people still feel like the first “traditional retirement” is right for them, I’m hearing more and more that clients aren’t necessarily interested in stopping work. They find fulfillment in their careers and want to continue to make an impact, but are interested in changing something about their current employment situation in their next chapter. 

Reevaluating Your Retirement Goals

If working differently is something you’re interested in, it may be time to reevaluate your retirement goals. As counterintuitive as it may sound, I don’t recommend you start by thinking about the financial side of retirement or working differently. Instead, set aside some time to think about your values, and to clarify what it is about your current work situation that you want to change. Let’s look at a case study.  

Jennifer decided she was no longer interested in her work as a software engineer for the Fortune 500 company she had been with for the past seven years. She had enjoyed her time there and had formed genuine relationships with many of her colleagues. The company had supported her continued growth, and she had thrived in her role.  

However, the more she worked at the company, the less fired up she was about her day-to-day. She felt like she was treading water, but the idea of traditional retirement was nerve-wracking. Golfing every day wasn’t her cup of tea, and the thought that she’d wake up without a true purpose felt unsettling. 

When we started working together, she had a lot of these feelings already but wasn’t sure what the next steps should be. Over time, Jennifer started to focus on defining her values. Through our conversations, we identified that travel and exploring other cultures were integral to her identity. She deeply valued the freedom to travel and felt limited by her current work situation to do so. 

Ultimately, Jennifer decided she wanted to work for an airline. Unlimited travel flexibility and the ability to take off on a new adventure at the drop of a hat were incredibly appealing. She knew the transition would require a sizable pay cut, but the value-based benefits that came with the career shift were too good to pass up. 

You may feel that, like Jennifer, you’re ready to transition to another career path. This might mean that retiring early, or pursuing a traditional retirement, is no longer the financial goal for you. If this is the case, it’s critical to have a clearly defined financial plan to make your goals a reality. 

Putting a “Work Differently” Plan into Action

Whether you are interested in changing career paths, or you want to break out on your own to start freelancing, consulting, or running your own business, you can take three steps to start putting your plan into action. 

  1. First and foremost, begin with the end in mind. Think about what your ideal “working differently” lifestyle entails. Are you working full time? Part time? Are you your own boss? Do you work from home? Do you have a team? Are you still a W2 employee? What industry are you interested in? In the words of Brenè Brown, paint “done” so that you have a clear picture of your target.

  2. Determine what you need financially to continue living a lifestyle you’re comfortable with (or a lifestyle you desire). A good rule of thumb is to look at the past 12 months of bank statements or credit card statements. Gather factual data that paints a picture of what you currently spend (and where your cash flow is going) to better understand your needs.

  3. Reverse engineer a strategy to make your “work differently” dream a reality. For example, Jennifer knew she wanted to work for an airline. We were able to evaluate her family’s financial needs and create a plan to ensure their lifestyle was comfortable even if she took a pay cut as she pursued this new career. A few concessions were made. For example, she knew that if she would be traveling more often, a home with a large home office for remote work likely wasn’t necessary. She and her husband were able to downsize, cutting their housing expense budget significantly. This freed up time, energy, and resources to put toward their lifestyle without sacrificing her goal of working for an airline and traveling.

Partnering with a Financial Planner

At ViviFi Planning, I believe that retirement planning should be anything but inside a box. The best conversations I have with clients are focused on how to create a financial plan around their unique vision for their lives, whatever that may be. The opportunity to connect on a deeper level by understanding their values and goals is unmatched. 

This is why, when discussing retirement, I focus on encouraging clients to consider what working differently, or having their current work be “optional,” would look like. Often, people hear that retiring early should be the goal when, in actuality, stopping work at 60 years old or even earlier may leave them feeling unfulfilled. 

Don’t be afraid to define the type of work you want to do, and how you want to do it. Creating a “work differently” plan for your life may be the key to empowering you to live into your values and make an impact on your community and the world around you. 

Interested in learning more about planning for a “work differently” goal? I’d love to hear from you. Start the conversation by clicking here.