In the U.S., the average retirement age is 62. This is when most people start winding down and can start collecting Social Security benefits.
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But even though this is the typical retirement age, not everyone wants to quit working. For some, it’s a passion for the job that keeps them working. For others, it’s the desire to keep active and stay productive.
If you’re someone who doesn’t plan to retire, here are key money moves you should make.
And if you want to stop working full time but don’t want to fully retire, consider the pros and cons of working part time in retirement.
Never Quit Learning
Ageism is very real issue, but so is falling behind on the times. If you want to keep working and earning money, you’ve got to keep learning.
“If there can be one thing I’ve found in the tech world, it’s that you never stop learning. Whether it’s software program software development, cybersecurity or AI, the equipment and trends are evolving rapidly,” said Jason Hishmeh, co-founder at Varyence. “If you want to keep working, you want to keep learning.”
That holds true no matter what field you work in. And, according to Hishmeh, this doesn’t mean you have to go back to school. It could be as simple as taking online courses or attending conferences.
“The vital thing is to stay curious and open to change,” he said. “That way, you stay useful and engaged.”
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Build Several Income Streams
You can’t always rely on one income stream, so if you want to make yourself more financially secure, create multiple income streams.
“Relying [only] on one’s profits is risky, particularly as you get older. What if the employer changes, or your role turns obsolete?” said Hishmeh. “Personally, [I] have commonly targeted my efforts on building scalable businesses.”
You don’t have to go the business route if you don’t want to. You could also create a passive income stream from something like course creation or investing. Or you could invest in real estate, though this may require more of a hands-on approach. You could even just take on a side gig for some supplemental income that goes toward your long-term savings or investing goals.
Assess Your Retirement Accounts
Traditional retirement accounts are great for when you’re planning a traditional retirement. But what about when you want to take an alternative route?
“If you don’t plan on retiring, your entire life, financial and tax plan changes. It is probably still a good idea to max out your retirement accounts for the tax benefits, but you may want to look at Roth instead of traditional. Roth accounts provide more flexibility, as you can access your contributions at any time,” said Jay Zigmont, Ph.D., CFP, founder of Childfree Wealth.
Hishmeh added that you may want to have additional investments you can bundle together with either taxable brokerage accounts or dividend-paying stocks.
Cut Back a Little
Just because you aren’t retiring doesn’t mean you can’t cut back on work a little — just enough to maintain your health without hurting your financial well-being.
“Most of our clients, who are childfree, are following a FILE (financial independence, live early) lifestyle rather than FIRE (financial independence, retire early). If retirement is an on/off switch for work, FILE is a dimmer switch,” Zigmont explained. “The key is to find the right work, at the right time, at the right place, across their life. It is common to see clients cut back on work, but never truly plan on retiring.”
So, what should you do?
“If you never plan on retiring, you may also be able to make different investments and choices in your life,” Zigmont said. “You may actually be able to take a lower paying job that you enjoy, even if it technically sets you back on your retirement savings goals.”
Focus on Your Health
Your health is always important, so you should prioritize yours, especially as you get older. Otherwise, you could end up in a heap of financial trouble down the line.
“If you plan on working your whole life, you need to take care of your health now,” said Hishmeh. “Medical problems can be disruptive even to the [best] laid plans. And let’s be honest: Healthcare isn’t cheap.”
Prioritizing your health can come in different forms. You can get regular checkups and preventative care.
You can even purchase a long-term care insurance policy, which costs an average of $950 to $1,500 a year for a $165,000-benefit policy, for men and women age 55, according to NCOA. Even if you don’t use it, it won’t hurt to have it.
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This article originally appeared on GOBankingRates.com: 5 Money Moves To Make If You Never Want To Retire
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