Recareering, Encore Career and Lifestyle Creep

For those in 50’s retirement means different things to different people.

If you are the lucky one to be in “sarkari naukri” (Govt job), retirement means inflation linked pension for rest of your life and after your death pension to your spouse.

If you are working in private sector, it means managing your post retirement life with retirement benefits like provident fund savings, superannuation pension and gratuity. Here biggest worry is how to protect your money from inflation.

Those in late 50’s should spend some time thinking on three issues- Recareering, Encore Career and Lifestyle Creep.

Recareering is not just a job change, but a move to a completely different career path for ex. a journalist may become stock broker. If you feel that your current job has reached dead end then recareering makes sense, it can give you money for longer period than remaining stuck in dead-end career.

Encore Career is different from recareering, it about using your skills for public service ex. using your experience and knowledge for NGOs. As social entrepreneur Marc Freedman puts it – “An encore career seeks to combine a sense of purpose with public-service passion and a paycheck for people in their 50s and 60s”. Encore Career can also be described as second vocation in second half in one’s second life.”

Just before retirement the income of individual is at its peak. He/She uses that income to improve lifestyle. After retirement, it becomes difficult to maintain that lifestyle.

Lifestyle creep is a situation where people’s lifestyle or standard of living improves as their discretionary income rises either through an increase in income or decrease in costs. As lifestyle creep occurs, and more money is spent on lifestyle, former luxuries are now considered necessities.

It makes sense to tone down your lifestyle after retirement.



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