For many, the mind stays sharp as long as it continues to be challenged, and the trend of retirees working and living longer proves just that.

Take Hugh Lyman, for example. When he retired, this small business owner pursued a long-standing passion as an inventor. Fascinated with the possibilities of using 3-D printer technology, he felt the expense of the plastic filament used was too high. So he developed his own version using lower-cost plastic pellets, cutting the cost of the material from $40-50 a kilo to $5. Apparently the cost of the original material was inflated due to a patent, so he invented his own workaround. Sometimes it takes a good bit of work experience to understand that there are alternate ways of achieving the same goal.

[CLICK HERE to read the article, “How an 83-Year-Old Inventor Beat the High Cost of 3D Printing,” from Time, March 4, 2013.]

However, not all retirees can afford to quit work and pursue their passion. One recent study asserted that the decline of company retirement benefits is a primary factor keeping older employees working longer than ever.

[CLICK HERE to read the article, “Older Workers Clog the Employment Pipeline,” from MarketWatch, Sept. 30, 2014.]

At age 70½, individuals can no longer make traditional IRA contributions, but they may continue Roth IRA contributions as long as they are earning income from a source other than a pension, annuity or required minimum distribution (RMD). If they work past age 70 for an employer with a 401(k) plan, they may continue contributing to the 401(k) as well and avoid required minimum distributions.

[CLICK HERE to read the article, “An Exception to the RMD Rule,” from Getting Your Financial Ducks in a Row, Nov. 28, 2014.]

Then again, for many retirees the question isn’t whether to work longer, but how they can preserve money once they’re out of the workforce. Many affluent professionals who made their fortune in New York are now fleeing the state in order to enjoy the fruits of their wealth — in part, to avoid paying more of it out to high taxes in the state. While the majority of retiring New Yorkers are migrating to Florida, a state with no taxes on retirement income, a smaller portion are sticking close by in New Jersey.

[CLICK HERE to read the article, “Baby Boomer Retirees Flee NY,” from Press Connects, Dec. 10, 2014.]

Still other retirees are joining and starting new virtual retirement villages. In an effort to live independently as long as possible, these organizations charge members an annual fee in exchange for access to resources and social connections that help them continue living in their own homes. As part of the growing social network economy, these entities are cropping up all over the country. There are presently 140 villages in 40 states, according to Village to Village Network, which helps manage these villages. Instead of seniors moving into one specific community, they may live in their own houses yet tap resources that their peers use, such as lawn care, dog walkers and even shared social activities. The organizations use social media sites such as Facebook, Twitter and YouTube to stay in touch with members.

[CLICK HERE to read the article, “Retirees Turn to Virtual Villages for Mutual Support,” from The New York Times, Nov. 28, 2014.]

It appears we are headed for a nation largely populated with seniors who, either working or living in retirement, seek potential solutions for their financial, leisure and social challenges. Please consider us as part of your network now and in the future.

Our firm assists retirees and pre-retirees in the creation of retirement strategies utilizing insurance products. Our firm is not permitted to offer, and no statement contained herein shall constitute, tax, legal or accounting advice. Be sure to speak with qualified professionals before making any decisions about your personal situation. Our firm is not affiliated with the U.S. government or any governmental agency.

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