While members of Generation X, known as the scrappy, independent, “do it my way” generation, don’t always look to baby boomers for inspiration, there’s one area where they may want to do just that: remote, part-time retirement.
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Boomers have figured out that the ability to both work remotely and part time in retirement is allowing many of them to keep working well past the age when most people stop. While Gen Xers may not have been able to reap many of the same benefits as boomers, such as low costs of living, buying homes when they were affordable and employer sponsored pensions, Gen Xers can follow suit in remote part-time work to ease their transition into retirement and build a buffer.
Combat Low Confidence in Retirement
Gen Xers are not, as a whole, feeling as confident about retirement as their boomer peers. In fact, 52% of Gen Xers don’t think they’re on track for retirement, according to Northwestern Mutual’s Planning and Progress Study. Thus, remote part-time work could be a boon for them, shared Niki Glen, a wealth management advisor with Northwestern Mutual with certifications in long-term care, retirement planning, financial planning and more. “That’s the lowest confidence reported among any generation out there,” she said.
Some of this lack of confidence comes from decades-long inflation that has continued to push the cost of mortgages, schooling and other goods up steeply, and the fact that many Gen Xers carry a lot of debt, Glen said.
“A lot of Gen Xers are paying that interest rather than earning it. And I think that’s why the negativity [about] feeling behind with retirement savings and why confidence is just down right now,” she said.
Remote part-time work can not only rebuild Gen Xers’ confidence in retirement, but allow them “a nice transition, not cutting off their income completely,” Glen said. “It gives them time to solidify their plans. And this is a way to protect what savings they do have and let it continue to grow.”
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Help Pay for the Healthcare Gap
For Gen Xers who hope to retire before they’re Medicare age, at 65, health insurance is a big concern, Glen said. “With people living longer these days, medical expenses are becoming more expensive. Medicare costs are going up, drug prescription plans are going up.”
Thus, part-time work for an employer that offers health insurance, even for 20 to 30 hours a week is a great opportunity to enjoy a part-time retirement, she said.
If you’re eligible for a health savings plan (HSA), part-time work allows you to maximize those plans, which can help with tax-free health expenses during their retirement years.
Stay Engaged
Another benefit of part-time retirement is that it can keep older adults engaged and stimulated at a time in life when many people are more prone to isolation, loneliness or loss of purpose. For some people, partial retirement is an opportunity to do something they wanted to do earlier in life but didn’t have time for, Glen pointed out. She said one of her clients “has this desire to go back and get her license to do some counseling for abused children … and volunteer at her church and do some additional work and maybe even create her own business.”
Part-time work can not only help Gen Xers connect to a sense of purpose, but can stave off the need to take Social Security until full retirement age of 70.
Keep Growing Your Savings
Transitioning into partial retirement has other benefits, Glen said. “Not only does it allow you to continue to defer the retirement savings that you do have and grow compound interest over time, but the impact that it can have on your Social Security is wonderful because you’re adding more years to your Social Security benefit calculation.”
Remote Work Benefits
With more remote work opportunities than ever before, as well, working part time in such a job or side gig may enable Gen Xers to be close to loved ones and not have to deal with long and expensive commutes.
“So that flexibility of working at home is fantastic and just brings down the level of stress,” she said.
Tips for Finding Reliable Remote Work
Antwyne DeLonde, founder and CEO at VisionX, offered a few strategies for Gen Xers to go about finding remote, part-time work:
- Play to your strengths: Gen Xers have decades of experience — roles in consulting, teaching or project management are great fits.
- Use trusted resources: Platforms like LinkedIn and FlexJobs are excellent for finding legitimate opportunities.
- Set boundaries: Create a clear work schedule to keep a healthy balance between work and personal life.
- Take tax deductions: If you’re working from home, you may be eligible for deductions like a home office — make sure to keep good records.
- Choose wisely: Look for work that aligns with your goals and physical capabilities as you age to avoid burnout.
Gen Xers can hopefully utilize this strategy to keep a foot in both worlds — the working world, which brings purpose and income, and the retired world, which brings a more leisurely pace of life.
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This article originally appeared on GOBankingRates.com: How Boomers Are Retiring ‘Part Time’ — Why Gen X Should, Too
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
