When you work in an intense field like medicine, your job might eventually take a toll on your mental health. In 2025, 49.8% of emergency medical practitioners reported at least one symptom of burnout, according to the American Medical Association. And persistent burnout could set the stage for an early retirement, which may be good for your outlook but less good for your finances.

There may, however, be a better way — a sabbatical.

If you tuned into the Emmy-winning medical drama The Pitt last season, you know that the storyline revolved around Dr. Michael "Robby" Robinavitch's planned sabbatical. Robby, the show's main character, had planned a three-month motorcycle trip to escape the grind and trauma of the emergency department, where he works as an attending physician.

Of course, as viewers, we don't actually get to see Robby embark on his epic escape. But he may have the right idea.

If you're in a high-pressure job, whether it's medicine, finance, law, or something else, you may reach a point when you feel the need to call it quits professionally. But it pays to explore a sabbatical as a potential alternative to early retirement before you bring your career to a permanent close.

Sometimes, you need a serious reset

Part of the reason so many people in high-pressure jobs succumb to burnout is that they don't allow themselves opportunities to reset. A sabbatical could make that possible.

Michelle Seijas, Ed.D. is an executive and leadership coach who understands the importance of getting that reset.

"I took a six-month sabbatical in 2017 after burning out as a high school principal," she says. "I aspired to be a superintendent and realized that continuing on that path was not sustainable. My sabbatical allowed me to rest, reflect, and re-emerge with a new plan for my life and career."

As Seijas explains, a sabbatical isn't just a break.

"It's a reset of your nervous system," she says. "The leaders I work with aren't just tired. They've lost the thread between who they are and what they do every day. Time away, when used intentionally, gives them the space to rediscover that thread before they make an irreversible decision."

Lisa Chen, LMFT and founder of Lisa Chen & Associates Therapy, says, "A sabbatical is something I highly recommend for burned-out professionals who are psychologically depleted. This time off allows their nervous systems to move out of fight or flight mode into a place where they can reconnect with themselves."

A major misconception about burnout, Chen explains, is that people just need a vacation and everything will be fine.

"I see burnout as functioning in a prolonged state of nervous system overdrive, so a weekend off won't be enough to repair someone who's experiencing burnout," she explains.

Chen has seen her share of professionals contemplate early retirement due to burnout and stress. In those situations, she'll often try to steer them toward an extended break when appropriate.

"I'd much rather see my clients be intentional about their retirement, not to leave their profession out of impulse," she says.

Making plans for your sabbatical

Some people use sabbaticals to travel. Others use them to pursue creative projects or obtain licenses or credentials for a career shift.

Chen says it's a good idea to think about how to maximize a sabbatical before it begins. But, she says, you don't necessarily have to fixate on a single accomplishment or goal.

"I highly recommend those who are suffering from burnout to make their sabbaticals restorative and intentional," Chen explains. "It's not about what they accomplish during their time off… Time off is more about rest, introspection with or without therapy, learning how to regulate their nervous system, and reconnecting with meaning outside of work."

Consider it a retirement trial run you can learn from

Your burnout may be pushing you toward retirement. But Aaron Ulrich, Owner at Integra Financial Planning, LLC, says a sabbatical is a great way to find out whether you're truly emotionally ready.

"In financial planning conversations, I'll often ask clients, 'How do you feel at the end of a vacation?'" Ulrich says. "If you're the type of person who starts packing Thursday night for a vacation that ends Saturday because you need to get back to your routine, then we need to talk about what retirement is going to look like for you. Not from a financial view, but from an emotional one."

In Ulrich's mind, a sabbatical gives you an opportunity to see what life is like without a job as an anchor. It's insight that a vacation alone won't give you.

"You're not just planning a trip and the big, exciting parts of time away from your career," he says. "You're planning how you're going to satiate your mind and spirit with a new lifestyle that fulfills you. If you can't create that during a sabbatical, then the permanent sabbatical known as retirement may be a challenge."

Make sure you're prepared financially

While a sabbatical could serve as the reset you need to make the most of your final stretch in the workforce, it's important to make sure you can swing that time off financially.

"Planning for hobbies and travel is obvious, and easy to put a price tag on," Ulrich says. "Planning for the gaps between those things can be much more challenging."

To that end, it's important to map out your expenses for your sabbatical. That includes potentially having to pay more for health insurance. It also means you may need to pause contributions to retirement savings, so you'll need to see how that affects your long-term financial plan.

Didi Chen, CFP, CFA, financial planner, and founder at Everleap Financial Planning, worked in finance and tech for over 10 years before walking away from a six-figure career in 2024 for a planned sabbatical. And she says there are specific steps you can take to protect yourself financially while you're away from work.

"In many states, mental health conditions qualify for paid medical leave, which means your job stays protected and RSUs keep vesting. Talk to a doctor and plan this out," she says.

Those looking to pause corporate careers have distinct financial levers to pull. For those workers, Chen also recommends timing your temporary exit around your RSU vesting schedule, especially if you don't plan to return to your current job. Waiting a few months, for example, could help you kick off your sabbatical in a stronger place financially.

Finally, she says, not earning a paycheck for a while could set the stage for other savvy financial moves.

"Your sabbatical year is your best tax-planning window," Chen says. "A Roth conversion and tax gain harvesting at 0% capital gains are simply off the table at [higher incomes]."

All told, you don't want to spend your sabbatical stressing out about money if the point is to regroup mentally and figure out your next steps. With the right planning, you can spend that time focusing on you instead of worrying about paying the bills and how your time away will impact your financial goals.

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Should you work until you reach your full retirement age (FRA) and can collect your full Social Security benefits, or take a pay cut and retire early? It's a question that weighs on many people’s minds.

The dilemma is understandable, as there are pros and cons to both options.

Retire early and get more years of freedom to pursue your dreams and enjoy life. But early retirement also means lower Social Security (SS) payments and having to stretch savings for more years.

Retire later, and you’ll have bigger Social Security checks and potentially more retirement savings, but fewer years to enjoy the money. If you get sick, you might regret the time spent working.

If your finances are in order and you aren’t sure if you should stick it out or call it quits early, here are some surprising statistics that could help you decide.

1. Most people don’t make it to full retirement age

If you were born in 1960 or later, your full retirement age is 67, the age at which you can get full SS benefits. At 65, Medicare kicks in, but at 67, you aren’t leaving any money on the table.

Retiring before your full retirement age means you'll see an up to 30% reduction in your SS benefits. Despite this, the average retirement age in America is 62 (PDF). That’s the age you can first collect Social Security benefits, and three years before you can start receiving Medicare.

For many, early retirement isn't a choice: Their health, a layoff, or a sick family member forces them out of the workforce.

For others, they're simply ready to start their next chapter earlier than planned. If you're likely to retire earlier than 67, you might want to plan for it now.

2. Our healthy life expectancy is in our mid-60s

As of 2021, the U.S. health life expectancy or HALE is 63.9 years, according to the World Health Organization, the average age a person is expected to live in good health without having chronic diseases or significant disabilities.

After that, the chances of getting a sickness or injury that could impact your lifestyle increase exponentially, even if the average life expectancy in the U.S. hovers around 78 years old.

If you're healthy now, have the means, and are thinking of retiring, that stat could push you over the edge. That’s not to say you'll get sick as you age, but if your family has a history of chronic illness or if you have pre-existing health issues, you might want to consider HALE when mulling the decision.

3. You run the risk of getting laid off

Everyone wants to go out on their own terms, whether it's an aging quarterback or the star of a long-running show, and the same is true when you retire. Unfortunately, many older Americans don’t have a say.

For people age 50 and older in America, a little more than half will experience a layoff or job reduction in their lifetime, according to this study. A layoff on the face of it isn’t a big deal, but when you’re older, it can be.

Older adults face age discrimination and other challenges, which can make finding employment difficult. An early retirement on your own terms can prevent that from happening.

4. Your job could be making you sick

When it comes to working, people are stressed. One study found that 46% of employees said most of their stress comes from work, and 77% said work stress negatively impacts their mental health.

Stress is bad for everyone, but especially for older workers; it can accelerate the aging process, increase the risk of chronic illnesses, ruin sleep and weaken the immune system. It can also lead to sick days, increased doctors' visits, and out-of-pocket expenses. You won’t have any of that in retirement.

5. We spend 90,000 hours working

Trying to find a work/life balance is admirable, but a hard goal to actually achieve. It's been said that we spend one-third of our lives working, or 90,000 hours, and that's not even taking into account the people who work more than 40 hours a week or work multiple jobs.

Work can be rewarding. For many, the absence of work leaves a void when they retire. But for others, work is a shackle that holds them back.

It's pretty staggering when you think of all the things you could be doing during the hours you are working. Retiring early seems a lot easier.

6. You're more likely to suffer a fatal accident

The longer you work, the more you can amass for your retirement, but depending on your job and your age, you're also putting your life at risk, especially if you are 65 or older.

That's because workers 65+ are 2.3 times more likely to die from an on-the-job injury than average workers. That amounts to a job fatality rate of 8.4 per 100,000 workers, according to the AFL-CIO.

While it's more likely in physically demanding jobs, those fatalities can also be triggered by minor falls due to slow reaction times or physical decline. But if you retire early, you can avoid that danger zone altogether.

7. Waiting to collect Social Security increases your check, but you won't break even until your 80s

Waiting to collect Social Security until 70 guarantees you a boost in your lifetime benefits, but it may not be worth it. After all, according to actuarial models, your break-even point, or the age where the cumulative total of your larger checks finally surpasses the smaller checks from taking benefits early, doesn't happen until around the ages of 80 and 82. If you don't make it until then, that's a lot of time and money you could have spent living.

Everyone is different

When you choose to retire depends on your unique situation. Some people love their jobs, find fulfillment and purpose from them, and never want to leave. Others can’t wait to retire and start their next chapters.

If you're on the fence, there are factors to consider beyond your finances, such as your health and longevity.

Remember that statistics are just that: statistics. Your experience might deviate.

Ultimately, your retirement timing shouldn't be determined by the average age or life expectancy tables. The right time to retire is when you're financially and emotionally ready.

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Question: I'm not worried about saving for retirement. I'm planning just to work forever. What can go wrong?

Answer: Saving early and often is the recipe for success in retirement. The longer you invest, the more time your money has to grow before your paychecks stop.

But what if you plan to work forever, and the paychecks never stop? Does that mean you can blow off or pull back saving for a retirement you don’t intend to have?

In a perfect world, where things go as planned, yes. In reality, no.

“You can’t always choose when you retire,” says Michael Conrath, chief retirement strategist at J.P. Morgan Asset Management. “You need to plan for the fact that not everything goes according to plan.”

There are benefits to working as long as possible. If you work until you're 70, you receive a 30% increase in your Social Security benefits. Working until that age also means less time drawing from your savings and more time for your savings to grow.

But thinking you'll never retire can’t be an excuse to put off saving, even if you already have a nest egg. Many things can go wrong with that. Read on to learn what.

Forces out of your control can derail your plans

Even if you love your job and are really good at it, there’s no guarantee you'll keep it forever, let alone until you're 70. “Only 28% of retirees say that they hit their target retirement date. On average, they retired three years earlier than expected,” says Conrath.

There are several factors out of your control that can derail that "work forever" approach, including:

You get laid off. Layoffs and downsizing are part of life, and you could end up on the receiving end of one of those actions. Depending on the job market and your age, it might be difficult to find a comparable salary or even a new job.

You hate your job. You might have the best job in the world, but that can quickly change if a new boss comes in, your co-workers change, or the company is under new management. Suddenly, the job you loved coming to work at every day becomes the place you dread the most.

“Your work dynamics can shift over time. You might not be working with — or for — the same people in the future," says Conrath. "A change in the organization could affect your happiness.”

You or a family member gets sick. Your health might prevent you from performing your job, forcing you to retire. This can happen unexpectedly or gradually over time.

It might not be you who gets sick either. An elderly parent, spouse or loved one might suffer from an illness, derailing your 'work forever' plans. JP Morgan found that close to one-third of people retire earlier than planned because of a health issue or disability.

“People don’t get to choose how long they work due to illness, caregiving, any number of things,” says Nick Nefouse, global head of retirement solutions and head of LifePath at BlackRock. “Having savings is important. It gives you more control.”

You become obsolete. From telemarketing to data entry, many jobs have become obsolete through the years. You run the risk of that happening the longer you're employed in a field. To remain relevant usually requires continuing education, which means time and commitment.

“Will you keep up with pursuing opportunities to expand or refine your skillset? If you’re in a physically demanding job, will you be able to continue to do that in your 80s or 90s?” says Conrath. “You need to take an honest look at your role and how the requirements could shift in the future.”

Do this instead

Working forever might not be a realistic plan, but a phased retirement is. This happens when you slowly reduce the hours you work, or shift into part-time work instead of retiring completely. You bring in a paycheck, stay busy, but still have time to enjoy your retirement.

During it all, you focus on saving for when you no longer want or can work at all.

“Plan for the window, not the day of retirement,” says Nefouse. “You don’t need a specific date. We retire when we physically can't work or don’t want to work, but you have to plan for those remaining years.”

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Retirement doesn’t mean the end of bringing home a paycheck. Countless people are working in retirement, whether they're consulting, working part-time or starting a new career.

For some, they're working because they need the money. For others, money isn't the issue. They're working for other reasons.

“There are people who didn’t save enough and need the money or need the benefits, and there are people who enjoy work. It gives them something,” says Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute. “There are many positive reasons people work in retirement.”

From the obvious to the surprising, here’s a look at seven reasons retirees re-enter the workforce. In addition, here are tips to help you get hired if you're looking for work.

1. Retirees work to counter boredom

Bored in retirement? How can you be when you no longer have to deal with the daily grind? The reality is that boredom is a real concern that can set in for many retirees, particularly those who haven't planned how they'll spend their free time.

To counter boredom, some retirees return to the workforce. Since they don’t need the money, they can be more selective where they work, choosing a job in a field that interests them or a hobby they want to pursue.

2. Retirees work to forge friendships and a sense of community

Work breeds community. You spend 30-plus hours a week with your co-workers, but when you retire, you lose that. For some retirees, it's too hard to take. They miss that camaraderie and sense of community, and return to work to find it again.

3. Retirees work to expand their horizons, test new things

Some retirees can’t sit still, nor are they ready to take it easy. They view retirement as a second act, a chance to launch a new career, try a job they always wanted to do but couldn’t. Some older people even start businesses in retirement.

According to Gallup, 52.3% of businesses in the U.S. are owned by people who are 55 and older.

4. Retirees work to hone in on a hobby

Whether your passion is caring for animals or arranging flowers, some retirees use part-time jobs to hone in on their hobbies.

Working part-time is a good way to test the waters, to make sure the hobby has staying power, and it also affords the retiree the ability to learn more about what they love.

5. Retirees work because opportunity comes knocking

A person might have left their job, but that doesn’t mean the company wanted them to leave. Sometimes an opportunity arises to work at an old job part-time, to consult or to take a new job entirely. The person might not need the money, but the challenge or opportunity might be too intriguing to pass up.

6. Retirees work because they enjoy working

Not everyone hates their jobs or work in general; some people like being employed. Working gives them a sense of purpose and structure, and they have fun.

Based on the 2025 Retirement Confidence Survey (PDF) from the Employee Benefit Research Institute, 88% of respondents who plan to work in retirement said the primary reason is that they enjoy working.

Enjoyment was second only to staying active and involved, which 89% cited as a reason to continue working.

7. Retirees work to boost their savings

Retirees might not need money in retirement, but that won’t prevent them from worrying about their savings being depleted.

To help them sleep at night, they get part-time work to boost their savings and invest more. They understand their money still needs to grow in retirement and work to supplement what is already there.

How to increase your chances of getting a job

Reasons abound why people work in retirement, but that doesn’t mean the transition is always easy. Whether you're thinking about consulting or taking a part-time job, here are some tips to get hired.

If you want to consult…
Start by asking yourself: What problems do you solve best and for whom? Your answer to that, says Jenn Herrity, career trend expert at Indeed, is what becomes your niche. From there, you have to put in the work to make it happen.

“Polish your pitch — refresh your professional profiles, list your service offerings, case studies and rates, and set up job alerts for consulting gigs,” says Herrity. “Tap your network of former colleagues and industry groups.”

Herrity says retirees should start small when consulting. Take on shorter-term projects that can deliver quick results. That will enable you to collect testimonials, positive reviews and hopefully, word-of-mouth referrals. By going slow, you can also determine if consulting is right for you.

If you want a part-time job….

Part-time jobs run the gamut from substitute teacher to retail associate. As the holidays approach, there is also an increase in seasonal work.

To secure a part-time job, you first need to determine your motivation. Are you doing it to be closer to a hobby or passion? Is it to have social interactions? What you want out of your job will dictate how you search.

Whichever way you go, create or update your résumé, making sure each version is optimized for the job you're seeking.

“If you have been out of the workforce for a while and are looking to return to work, list that on your résumé as a career break and explain in a bullet or two the activities you did,” says Toni Frana, FlexJobs' career expert manager. “Show the employer you're engaged and have been doing things out of the workforce.”

Once you have your résumé in good shape, search for jobs online and set alerts for ones that fit your criteria. You can also look for jobs within the community at the library, in the schools, or in non-profit organizations. If all else fails, volunteering might be another option.

Don’t give up hope

Finding a job in retirement might not happen overnight. It could take time and work. But if you stay committed, your hard work will pay off.

“Retirees today have more ways than ever to blend purpose, flexibility and income,” says Herrity. “The challenge is often figuring out which of these paths best matches your skills and lifestyle.”

Since it's for love, not money, you can and should take the time to find the right fit.

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As you move on from your job, the friendships you made — built on sharing spreadsheets, coffee breaks and office banter — often struggle to survive. That's because you and your work friends share a common goal and often a shared language that only shows up at the office.

Changes in life, remote and hybrid work, retirement and shifts in daily routines can slowly erode workplace friendships, making you wonder why the connections that once felt so strong can fade faster than your motivation on a Friday at 3 p.m. Understanding why this happens can help you hold onto these connections, even after you’ve clocked out for the last time.

Unfortunately, several big factors are usually at play. Shared gripes, deadlines, and coffee runs vanish, so does the glue holding the friendships together. Here's why.

Loss of common ground

Work friendships are built on shared goals, routines, team dynamics and workplace environments. Leaving a job for retirement or a career change removes this common ground, making it harder to maintain connections without deliberate effort.

A different path in life

Life after work can lead to different priorities. Retirees now have the time to focus on personal fulfillment, including traveling or spending more time with family.

That can sometimes clash with the goals and schedules of friends still in part-time or full-time professional roles. These differing schedules and interests can strain ties.

Make the first move and reach out to your work friends

Work friendships rely on regular interaction, such as lunch breaks, after-work get-togethers and endless meetings.

Without the office, keeping these connections alive means actually scheduling real meetups, and let's be honest, if neither side makes it a priority, friendships can quietly fizzle.

"The first step is to acknowledge that you miss your colleagues and the relationships built throughout your career, says Deb Feder, author and CEO of Feder Development, LLC.

"Make a list of 3-5 colleagues that you would love to catch up with and start with simple reach-outs by phone or email to say 'Hello,'" she said. "Expand these conversations and make plans to keep in touch."

Commit to reaching out first instead of waiting for your colleagues to take the first step. Set up dates on your calendar as a recurring event as a reminder each month.

Acknowledge you feel a little lonely and take steps to address those feelings

Workplace bonds are usually more professional than personal. You and your colleagues go through similar stressors, deadlines and achievements together.

But strip away the job as the common thread, and you might even find you have nothing else in common. Poof, these connections evaporate like they were never meant to last outside the cubicle.

Still, there is also an important distinction worth naming, says Lucy Rose, Founder and President at The Cost of Loneliness Project. "Situational loneliness comes and goes, but chronic loneliness is persistent and ongoing, and it carries real health consequences including elevated risk of heart disease, cognitive decline and depression. Chronic loneliness is not a mood; it is a health condition that deserves the same attention we give to our physical well-being."

Rose goes on to explain that when the chapter of life centered around work ends, people often experience two forms of loss at once: the loss of specific people who they spent a considerable amount of time with, and the loss of a community that organized your sense of belonging. "Both are real, and acknowledging them is where rebuilding begins."

Understand the impact of age-related shifts

The reality is that ageism can impact relationships, both at work and outside the office. Friends being at different points in their lives, such as one looking toward retirement and another still very much in the midst of their career, can create conflicts.

A 2025 Harvard Leadership & Happiness Laboratory article shows that older adults find it harder to maintain work friendships because productivity in the workplace is seen as more important than building personal connections.

Another related study highlights how retirement reshapes networks: It boosts some non-work ties, but also causes workplace ones to decline — without active pursuit.

How to maintain friendships after work

When people leave the workplace, friendships can fizzle out. The good news is that with a little work on your part, there are ways to salvage and even improve these friendships.

Take an active role and reach out first: Don't wait for ex-coworkers to contact you. They may assume you've moved on. Instead, schedule regular check-ins with former colleagues, such as coffee meetups, or sending casual texts or calls to replace the interactions lost from leaving your job.

Dr. Amanda Allard-Schuster, Owner at Allard Advising, suggests reaching out via virtual coffee chats through platforms such as Zoom or Google Meet. "The way to commit to doing this is by setting it up on your calendar monthly as a recurring event. If one needs to reschedule, it is easy to maneuver, but this is a great way to stay in touch."

Join new communities: Before leaving the job, ask if your coworkers belong to local groups, clubs or classes that align with your interests. Allard-Schuster further explains that finding a community outside of work, especially after retirement, is crucial for social and mental health. These communities can be online or in-person. "The point is find people who care about similar interests as you and engage in activities with them."

Find shared interests: Make the shift from job-related conversations to common interests like hobbies, sports, volunteering or classes. If coworkers don't share interests, check out hobbies or activities on your own to meet other people with similar passions beyond the office.

Rose also points out that for those who want a wider community, volunteering is among the most well-researched responses we have. "Studies following thousands of older adults found that regular volunteering reduced the likelihood of chronic loneliness by nearly half. The goal is not to recreate the work relationship; the goal is to discover new opportunities for connection."

Reconnect with friends outside of work and also try to make new ones: Take retirement as an opportunity to connect with people from other backgrounds and age groups, outside of the workplace. Reach out to past friends and acquaintances. Rebuilding old connections can lead to new friendships.

Be proactive and follow through: Put meetup dates on your calendar like you would work meetings. Small, consistent efforts, like getting together or calling on a certain day each month, prevent you from losing touch. Studies show that friendships require mutual priority, but one person often starts the momentum.

Address your emotional needs: What do you want in a friendship? Emotional support, shared activities? This is a good time to take care of yourself and find what makes you happy outside of work.

Get professional help: If loneliness or the loss of a close workplace friend when you retire feels overwhelming, consider consulting a counselor or joining a support group.

Finding connections after leaving your job

Workplace friends tie you to the job beyond just work-related tasks, creating a sense of belonging to something greater. Losing them can sting.

Some of your best ideas have come from conversations in the hallway or during lunch breaks. But it doesn’t have to stop there.

Understanding the depth of these connections, initiating meetups, volunteering and joining a club, or forming new friendships can help you process the loss and move forward confidently.

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Retirement can mean lazy mornings, taking an online class, drinking coffee on the porch, starting a new hobby — and perhaps even a nap or two. But for many retirees, it can also bring far too many quiet days and not enough chatter. That’s no small deal. Loneliness has become a real struggle for many retirees, weighing down their golden years and undermining the enjoyment they hoped retirement would bring.

Today, 43% of adults over 65 feel lonely, which can lead to depression and health issues, per the National Academies of Sciences. The fix? A side hustle or part-time job. And, it’s not just about earning extra cash. A part-time job can spark new friendships, lively chats, and a serious boost to your social mojo.

As a retirement transition expert & co-founder at Encoraco, Elizabeth Zelinka Parsons knows a fair amount about transitioning into retirement. She explains that the old ideas of retirement have become obsolete. “Highly motivated entrepreneurs aren’t fading away — they are reinventing themselves and becoming more valuable to the world than ever.”

Ease into full-time retirement by working part-time

As an Investment Advisor and Financial Planner at Walsh & Nicholson Financial Group, Dominick Leuzzi has identified a growing trend among retirees who are pursuing part-time employment. He says that it’s not always just about the money, but also because they miss people, along with the structure and sense of purpose that comes with being in the workforce.

“One of my clients, for example, was a business owner for over 30 years. After retiring, he told me he loved the freedom, but the quiet got old quickly. He started working two days a week at a hardware store just to stay busy, and ended up loving it. Not for the paycheck, but because it gave him back a sense of community. From what I’ve seen, side gigs in retirement are often less about income and more about connection and fulfillment.”

Dr. Harry Agress Jr. reinvented himself at 68, after a 36-year career as a radiologist. Rather than slowing down, retirement sparked a remarkable new chapter in his life. Now an author, speaker, and philanthropic photographer, Dr. Agress is redefining what it means to “retire” by exploring volunteer teaching, creative pursuits, and engagement strategies. He even wrote a book, Next Year’s Best Years: Taking Your Retirement to the Next Level.

While he focuses on a broad range of ways to stay socially connected, Dr. Agress says, “I have seen how part-time roles — paid or volunteer — provide structure, purpose, and vital human connection for retirees struggling with isolation.”

To ease into retirement and delay the feelings of loneliness that often crop up, Parsons suggests finding a way to taper down working life while still generating some income.

“To state the obvious, the longer that anyone can avoid depleting their savings, the longer those savings last and can continue to grow," he says. "But many people overlook this strategy, imagining that they are either working full-time or not at all. The middle ground can provide a comfortable psychological transition into full retirement while also dramatically improving long-term financial security.”

Working part-time while retired can help you stay connected

The CDC warns that social isolation ups the risk of heart disease or dementia by 26% to 29%. But a part-time job can turn that around.

Take Susan, a 70-year-old Texan who felt isolated after the company where she’d worked closed its doors after 20 years. She returned to part-time work, pitching marketing plans to several online companies. Although she didn’t return to the office, she found that meetings via Zoom kept her connected with younger coworkers and clients. Her gig, about 20 hours per week, fits her new routines and keeps her social circle buzzing.

In the same way, a part-time job can be anything you love that gets you out and socializing. If you love animals, try walking dogs or feeding cats. You’ll get the chance to chat with your neighbors while walking or at the park. Handy with tools? Helping a neighbor with home projects, such as changing a worn-out tire, allows you to get to know the family up the street, share a few laughs, and maybe even get invited to their next potluck.

Sharing your knowledge with kids or adults by teaching or mentoring can help spark deep connections, whether in-person, at a community center or online. And, delivering groceries or driving people around can lead to lively chats with all sorts of folks, keeping you connected. Plus, you don’t need to go all-in. Start by working just a few hours a week doing something you enjoy, and let the conversations flow.

Parsons adds, “There are programs out there that offer a customized roadmap to planning your encore to help you build a second act that is meaningful, profitable, and wholly accountable to the life you imagine.”

However, keep in mind that if you’re under your full retirement age (FRA), part of your Social Security payments could be temporarily withheld if you earn more than $23,400 per year (the 2025 limit), as per the Social Security earnings test.

A part-time job in retirement helps reduce loneliness

A part-time job is more than just a paycheck; it provides opportunities to connect with others, discover a new purpose and combat feelings of loneliness. So, get out there, pick a job that feels fun, and watch your social life light up. Dr. Harry Agress Jr.'s story proves it — a little work can go a long way in beating loneliness.

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Thumbs up! You've done very well and saved plenty of money for a happy retirement. But, for any number of reasons — sense of identity, purpose or social connection — you just can’t say goodbye to the job.

Maybe it's because work offers structure and status that you fear retirement might not replace. Maybe it’s about staying mentally sharp, avoiding boredom or having a deep attachment to the daily grind. Unfortunately, financial security doesn’t always address these emotional or psychological needs.

About 73% of people aged 65 to 74 have left the workforce, while around 34% of people aged 55 to 64 are retired. Since the early 1990s, people have been working longer despite rising household wealth and a falling poverty rate.

So what is the one-more-year trap, and how do you overcome it?

What is the one-more-year trap?

People stay tied to their jobs for a few key reasons, and it's not always about money. Their work often gives them a sense of identity — it's who they are, not just what they do. Leaving the workforce could feel like losing a piece of themselves. Some stay for one more year because they crave the daily grind and purpose their job provides and they fear retirement may feel like a void without that daily rhythm.

Social connections and work friendships also play a big role, as leaving means risking loneliness in retirement. Some love the mental challenge or the status their role brings and fear the possibility of boredom or irrelevance in retirement. Working one more year seems like the perfect remedy to fill the mental gap retirement can leave.

Why stay on the job when you can clearly retire?

Staying on the job despite being able to retire often comes down to personal fulfillment, purpose or practical considerations. You may love your work, finding it meaningful or energizing, and retiring might feel like losing a part of your identity.

Financially, staying employed can further boost your already substantial savings, delay you tapping into retirement funds, or maintain benefits such as health insurance, which is projected to increase significantly. Medicare’s Hospital Insurance Trust Fund is expected to be depleted by 2036 under current trends.

On the flip side, retiring could free up time for hobbies, travel, or spending time with family, but it might also bring boredom, isolation, and a sense of loss for those who thrive on the demands of work.

It’s a trade-off: purpose and income versus freedom and leisure. The decision hinges on what drives you — security and engagement or the desire for a new chapter.

My dad, who worked his entire life to build a substantial nest egg, never actually retired, but clearly could. He worked part-time selling real estate to stay connected with the community and the friendships he’d built at work over the years. Although there were times when he hated the late hours, he just couldn’t walk away; he traded retirement for feeling needed, productive, and important.

For other people, it may be the all-too-common inability to recognize what is enough. Have I saved enough? Will we run out of money if we retire now? (The latest figures by Northwestern Mutual in the 2026 Planning & Progress Study put the magic number to retire comfortably at $1.46 million.)

Besides that, some people just can’t shake the worry bug. What if there's a recession or the stock market tanks? Hopefully, you’ve diversified, so if one part of your portfolio takes a dip, another part can shore up your finances in the meantime.

Savings by age

According to March 2026 data from Empower, the average retirement savings for Americans in their 60s is approximately $1.23 million, with a median of about $568,000. These figures include balances from retirement accounts such as 401(k)s, IRAs, and similar plans.

According to figures by Fidelity, baby boomers had an average 401(k) balance of $249,300 and an average IRA balance of $257,002 in 2025 — far from the magic number to retire.

You too can reap the best of both worlds

Even with ample retirement savings — say, well above the $1 million range — many choose to continue working for reasons beyond money. The good news is that there are ways to break the cycle of unretiring.

1. Build a clear financial plan: While it’s true that you currently have enough money to retire, working with a financial advisor will help ensure that your savings, investments, and withdrawal strategy, such as the 4% rule, will cover expenses, including unexpected healthcare costs.
2. Define a new purpose: Identify activities that replace the sense of purpose work provided. Research from the TransAmerica Institute (2024) shows that roughly 20–30% of retirees struggle with identity loss or finding new purpose after leaving the workforce. Planning meaningful activities can help prevent this.
3. Grow social connections: Retirees can combat isolation by joining clubs, community groups, or taking classes online. Regular social engagement can replace workplace camaraderie and reduce the pull to return to work for one more year.
4. Create a routine: Bored? Establish a daily schedule with activities like exercise, learning or part-time passion projects. A structured routine mimics work’s predictability, easing the transition and preventing boredom.
5. Test out retirement first: Before fully retiring, try a phased approach — cut hours or shift to part-time or gig work. Approximately 36.9% of people aged 55 and older were employed in 2025, up from 31.5% in 2000. By comparison, in 1983, the labor force participation rate for people age 65 or over was just 19%, according to the U.S. Bureau of Labor Statistics (BLS).
6. Stay active: Having an active lifestyle can lead to higher retirement satisfaction, reducing the desire to unretire for stimulation, according to a 2024 study published in Activities, Adaptation & Aging by Hutchinson and Ausman, a Canadian-based research team.
7. Reassess your goals: Align spending and lifestyle with your values. Downsizing, relocating to a lower-cost area, or cutting discretionary expenses can stretch your savings and ease any financial pressures that may drive you to work one more year.

What it takes to finally retire

Just as working beyond 65 isn't for everyone, neither is retiring. If you're caught in the one-more-year trap, either by choice or for personal reasons, there are ways to break free. Stress test your finances. Be analytical and face the fact that your net worth may stall or even decline after a while. If that happens, you can always go back to work.

More importantly, relax. As many retirees discover the hard way, chronic stress can subtract two to three years from your life expectancy — a high price to pay after decades of hard work.

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Navigating a job search can be stressful and exhausting at any age. However, older individuals face an added challenge: the job market often favors youth.

As of this past November, there were approximately 7.1 million job openings nationwide. In theory, this could create a wealth of opportunities for adults over 50 seeking a new job or exploring a different career path. Yet, for many of these workers, the reality of ageism hits home. Skepticism about a job-specific skill set, technology aptitude and expectations for pay can keep older workers on the sidelines when, in fact, they are itching to get back into the game.

The BLS also reports that among 55- to 64-year-olds, an impressive 65.9% are still active in the workforce, with projections showing a rise to around 68.6% by 2034, partly due to slowly phasing out of work or delaying retirement. From traditional full-time positions and hybrid settings to remote roles and freelance gigs, older workers are staying on the job or returning to the labor market.

It's illegal for employers to discriminate against applicants due to their age, thanks to the U.S. Equal Employment Opportunity Commission. However, the challenge remains for someone in their 50s or 60s to get a job.

Here is a look at seven tips for getting hired after 50.

1. Age-proof your resume (assuming you still have one)

Your experience may span decades, but it’s probably best to focus on the last 10-15 years and omit older roles unless they are relevant to the new role. Remove graduation dates but include your achievements and tailor your resume to the position you’re seeking. It's fine to mention earlier positions when appropriate, but try to focus on the more recent past.

Dr. Kyle Elliott, Founder, Tech Career Coach, & Mental Health Expert at CaffeinatedKyle.com, offers this advice. “If you're an older job seeker, you typically want to limit your resume to the past 10 years," he says. "Highlight your most relevant experience, but don't stop there. Emphasize what sets you apart from other candidates."

2. Target a few roles instead of dozens

Although it seems logical to apply for as many jobs as possible with hopes that at least one turns out well, it's best to target only one to three specific roles, instead of splattering applications everywhere. Pick a "target" role that matches your strengths and experience, then tailor your resume and cover letter (if needed) to show exactly why you're the best fit. Quality over quantity wins every time.

3. Leverage your network

Former colleagues and bosses can be your biggest advocates, so reach out to them for job leads and referrals. Utilize social media platforms or attend webinars and virtual events to expand your professional network.

Elliott also acknowledges that, as a more experienced worker, you've had more time to develop your professional network than someone earlier in their career. He says, “Now is the time to leverage it. Don't be afraid to reach out to former colleagues, clients and vendors at your target companies to set up informational interviews, learn about company culture and see how they might benefit from your background and skills.”

4. Upskill your knowledge

Taking online classes, some of which are free or nearly free, can give you a head start on learning new technologies and combating stereotypes about older workers. Earning certificates that are relevant to a particular position can also help demonstrate your versatility and willingness to go the extra mile.

“For those over 50, one powerful differentiator is your deep industry expertise,” Elliot says. He adds that it is always best to demonstrate you’re adaptable and committed to continuous learning.

In fact, in a 2025 randomized clinical trial, researchers aimed to determine whether older adults could still learn new things, even after age 65.

They recruited a group of people aged 65 and older and had them play challenging computer-based brain-training games for about 30 minutes each day. After 10 weeks, these older adults showed vast improvement in that part of the brain that handles attention and memory. It’s never too late to learn new things or improve your brain.

5. Write a targeted cover letter

A cover letter is nearly always required when applying for a job and gives you the chance to elaborate on your skills and abilities, while explaining why you want the position. It can also be used to address a hiring manager’s concerns about any potential over-qualifications. Keep it to one page only, but focus on why you’re a good fit for the role.

6. Prepare for interviews

Interviews can be tricky, as hiring managers sometimes prefer to conduct them in person or online through platforms that use your computer’s camera for video conferencing. If you find yourself in this position, address ageism tactfully by emphasizing your skills and expertise, as well as your eagerness to learn from younger colleagues.

JW Heflin, partner and recruiter with ThinkingAhead, spins this new narrative. “It’s not about age. It’s about value. Employers aren’t asking how old you are; they’re asking, ‘Can you solve our problems?’ If you’ve ‘been there, done that and got the T-shirt,’ show it off, but only if it’s relevant to the role today. Skip the war stories from 1997 and highlight instead how your recent wins align with their needs.”

7. Explore flexible roles

Already retired? Returning to work doesn’t have to be burdensome. Consider freelance, work-from-home, side gigs or contract work that will bring in a paycheck while also giving you the freedom to enjoy your retirement.

To start, check out the AARP Job Board using filters like flexible/remote/part-time from age-friendly employers. Go to FlexJobs or Workforce50.com for jobs curated for 50+ workers. You can also find age-friendly employer lists via the Age-Friendly Institute for companies committed to older workers.

Here are a few more:

• Rent a Grandma
• Retired Brains
• RetirementJobs.com
• Seniors4Hire

Why people age 50 and over are returning to work

More and more older adults are returning to work, with 37.9% of those 55+ in the labor force in December 2025, per the latest BLS Employment Situation report and AARP digest. In contrast, the BLS reports that only 19% of people 65 and older were in the labor force in 1983. Although reasons vary, returning to work for some is simply to fortify their retirement savings. Especially since the 2025 Planning & Progress Study by Northwestern Mutual puts the figure for a comfortable retirement at $1.26 million.

Although you may be able to (or think you can) live off Social Security as your only source of income, it likely won’t be enough to replace your pre-retirement standard of living and pay all of your expenses.

A September 2025 Bankrate survey found that more than half of American workers feel behind on their retirement savings, with confidence in reaching their goals declining year-over-year. Another study by Allianz Life, released in January 2026, reported that 51% of Americans have stopped or reduced their retirement contributions in the past six months due to economic pressures. In a recent update from Resume Builder, one in eight retired senior citizens is expected to return to work in 2025. Why? To pay their expenses.

Although having enough money for a comfortable retirement isn’t the only reason why people over 50 are returning to work, it certainly ranks as a top contender.

Landing a job over 50 is hard, but not impossible

Figuring out how to generate enough retirement income and replace that old paycheck can be challenging — even more so if you’re over 50. Work on your resume, connect with old colleagues, and stay positive, then check out Kiplinger’s Retirement Calculator to estimate the future value of your retirement savings and determine how much you need to save (or earn) each month to stay ahead of the game and enjoy a financially secure retirement.

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"Uh oh. It looks like somebody's got a case of the Mondays" is a classic line in a classic movie, but it turns out that it's not just a clever little joke from 1999's Office Space.

Monday anxiety is a real phenomenon with some real potential health consequences.

While it's natural to assume that this phenomenon would affect only current workers who feel a sense of dread about the start of a new work week, a new study published in the Journal of Affective Disorders reveals that may not be the case after all.

Here's what retirees need to know about Monday anxiety, why it happens, how it can affect their health — and what they can do about it.

Monday anxiety isn't just tied to workplace concerns

The University of Hong Kong's Department of Sociology, within the Faculty of Social Sciences, recently published a new research study. Led by Professor Tarani Chandola, the study included over 3,500 adults.

Chandola reviewed past data, including meta-analyses that identified the phenomenon of the Monday Blues, and chose to examine an older population to better understand the impact. That population included people in retirement, and, surprisingly, the research revealed that even many people who no longer work still experience anxiety on Mondays.

Among those retirees who experience anxiety, cortisol levels measured in hair samples were 23% higher compared with the cortisol levels of peers who did not exhibit anxiety at the week's start.

The researchers believe the Monday effect reflects "a life course effect." While the majority of people eventually adapt to Monday anxiety during their years of work, some people don't ever become accustomed to this worry about the work week ahead. For these individuals, the anxiety becomes so deeply ingrained that it doesn't go away even when there is no longer a work week.

"Mondays act as a cultural stress amplifier," Professor Chandola said. "For some older adults, the week's transition triggers a biological cascade that lingers for months. This isn't about work — it's about how deeply ingrained Mondays are in our stress physiology, even after careers end."

Unfortunately, Mondays have been linked to a 19% increase in heart attacks, and this new research shows HPA-axis dysregulation may be a contributing cause. The hypothalamic-pituitary-adrenal (HPA) axis regulates levels of cortisol and other stress hormones in the body, and when these hormones are regularly elevated, immune dysfunction, insulin resistance, and hypertension can result.

Of course, none of this is good for your health.

What can retirees do to cope with their Monday anxiety?

First things first, retirees who experience anxiety on Mondays, even without a job, must be aware that their feelings are normal.

"Monday anxiety is often a conditioned response built over decades," Dr. Sharon Batista, MD, a board-certified psychiatrist in private outpatient practice and Assistant Professor of Psychiatry at the Icahn School of Medicine at Mount Sinai told Kiplinger.

"In our culture, Monday is psychologically associated with structure, productivity, and increased obligations. Even without a work role, retirees may feel anticipatory stress," Dr. Barista said.

Life stresses also don't go away because work is done.

"Many retirees report feeling a 'phantom pressure' on Mondays, rooted in decades of workplace associations," explained Michele M. Tugade, PhD, Professor in the Department of Psychological Science, and William R. Kenan, Jr., Endowed Chair at Vassar College. "Some develop new types of to-do lists — clean the house, laundry, gardening — that can be just as stressful if associated with previous anxiety."

The good news is, there are things that older people can do to manage this anxiety.

"From a psychological perspective, managing chronic stress involves both the development of adaptive coping mechanisms and the cultivation of emotional resilience," she said. "Evidence-based practices such as cognitive behavioral therapy, acceptance and commitment therapy, and mindfulness-based stress reduction have been empirically validated as effective interventions."

Dr. Batista also recommends intentionally redefining Mondays by planning enjoyable or meaningful activities to build positive associations with the day. And she suggested making sure you maintain consistent sleep, exercise, and daily routines to regulate cortisol, as well as implementing stress-reduction techniques like breathing exercises or gentle yoga.

While pursuing therapy or doing yoga just to feel better on Mondays may seem like a lot of effort, it is well worth it to keep cortisol levels down. The research showed that those levels of stress hormones were still elevated months after the anxiety hit, and when these stress levels are elevated long-term, the consequences to your blood pressure, immune system, and heart can be devastating.

So when next Monday rolls around, try to focus on doing something fun to keep your stress levels down — perhaps even watching Office Space for a few laughs.

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Today's workplace is far from traditional — it's dynamic, evolving and anything but business as usual.

From remote or hybrid work to flexible schedules, side hustles, and the growing trend of micro-retirement, younger generations are embracing change, with Gen Z leading the charge. In fact, the micro-retirement trend has gained enormous momentum across platforms like TikTok, Instagram and YouTube.

But the idea of a micro-retirement isn’t new. Academia has been taking sabbaticals or leaves for decades to study and conduct research.

Jillian Johnsrud, author of Retire Often, has written about mini-retirements for more than a decade. So what's all the hype about micro-retirements, and why are workers welcoming this growing trend with open arms?

What are micro-retirements?

Micro-retirement is about taking short, strategic breaks from work, typically lasting a few weeks to a few months to travel, work on a personal project, focus on mental wellness or to simply slow down, with a plan to return to the job afterward.

Unlike traditional retirement, micro-retirement is not a permanent exit strategy, but a deliberate pause often chosen by younger workers, especially millennials and Gen Z. The idea has gained traction in response to burnout and evolving work-life balance priorities.

“Just like retirement, many people financially plan for micro-retirement to ensure they have the proper funds in place to support their time away from work,” adds Steve Sexton, CEO of Sexton Advisory Group.

“For some people, micro-retirement can mean completely logging off and dedicating the time to anything but work," he said. "Others may choose to take on remote projects during their micro-retirement to stay relevant in their field of work and/or to ensure a steady flow of funds during this period.”

Who takes a micro-retirement?

Even though Gen Z (ages 14 to 29) still has decades until retirement, they’re leading the shift toward better work-life balance and driving the micro-retirement trend.

As of 2026 estimates, millennials (born 1981–1996) make up the largest share of the workforce, accounting for 33%-38% of workers. Gen X (born 1965-1980) follows with about 26%-31%. Gen Z (born 1997–2012) comprises about 21%-25% of the workforce, and baby boomers (born 1946–1964) make up 5%-10%.

The number of baby boomers in the workforce tends to fluctuate, with some returning to work after retirement, or "unretiring."

“As a financial planner, I see growing interest in micro-retirement as a proactive lifestyle choice, especially among Gen Z and millennials, says Melissa Murphy Pavone of Mindful Financial Partners. “For many, it’s not about opting out of work altogether but about opting into intentional living. Taking an extended break, whether to travel, care for family or simply reset, can be a smart and fulfilling strategy when it’s financially planned for.”

Can your finances support a micro-retirement?

The primary drawback of micro-retirement for many is the absence of a regular paycheck. In a 2026 study by Allianz, 27% of workers report declining confidence in retirement savings, with 67% worrying more about running out of money than dying (a record high). This is in line with the latest 2026 EBRI Retirement Confidence Survey, which found that only 39% of workers feel confident that they have enough money to live comfortably in retirement.

Micro-retirement means stepping away from a paycheck, but it doesn't mean giving up on your goals.

"With the right planning, you can take time off without wrecking your financial future," said Michael Rodriguez, CFP at Equanimity Wealth.

"Maybe you need to build up six to 12 months of living expenses. Maybe it’s downsizing for a year or cutting back in other areas, or getting out of debt before you take a break," Rodriguez said. "The aim of micro-retiring isn't about adding to your stress; it's about creating a plan that gives you permission to pause without fear that you're falling behind financially."

Are employers also embracing this growing trend?

For companies, replacing an employee can cost thousands of dollars, from recruiting and interviewing candidates to lost productivity and the time it takes to train replacements. A new poll by Gallup points out that replacing an employee typically costs 50% to 200% (half to twice) of their annual salary, depending on the role.

Asking companies to adopt workplace changes might seem impractical, but taking extended breaks from work, such as a micro-retirement, is not necessarily a new phenomenon. Regardless, employee retention, an organization’s ability to hold on to its people and reduce turnover, is vitally important to a company's success.

To improve retention and keep younger employees, businesses may want to rethink “doing business as usual” by offering these sorts of breaks as a workplace benefit, akin to an employer-matched 401(k) or health insurance. That's especially the case as younger workers have demonstrated they have no qualms about quitting or job hopping.

Wage and salary workers stay with their employer an average of 3.9 years, according to the most recent BLS data (January 2024), down from 4.1 years in 2022 — the lowest since 2002. More recent 2025 industry analyses show even shorter average tenures around 2 years.

Micro-retirement vs sabbatical

Micro-retirement is a new spin on the traditional sabbatical. However, there are differences.

First, micro-retirement isn’t employer-funded, so you can say goodbye to your paycheck while you’re away. On the other hand, sabbaticals can be either paid or unpaid, depending on the employer.

Second, you don’t have a guaranteed job upon your return when you micro-retire. If you take a sabbatical from work, it usually involves securing a guarantee that your job will still be there when you return.

"Unlike a sabbatical, which is usually structured and sometimes paid by an employer, micro-retirement is self-funded. You're stepping away from a job entirely, without a guaranteed position waiting for you afterward,” said Equanimity Wealth's Rodriguez.

He adds, “It takes financial planning, and it’s not just for trust fund kids. I’ve seen everyday professionals, even those on modest salaries, build up a buffer to step away with intention.”

Why are Gen Z and millennials embracing micro-retirement and FIRE?

The FIRE (Financial Independence, Retire Early) movement focuses on achieving financial independence through aggressive saving and investing, allowing individuals to retire much earlier than the traditional retirement age. Participants typically aim to save 50% or more of their income to accumulate enough assets to cover living expenses without relying on traditional employment

Essentially, the goal of the FIRE — Financial Independence, Retire Early — movement is to aggressively invest and save, often up to 50% of your income, so you can retire earlier than the traditional retirement age. That means if you play your cards right, it could be possible to retire early in your 40s or 50s.

The goal of micro-retirement is similar, except it involves brief pauses from work to relax and refresh, with the intention of heading back to work afterward.

“A lot of the younger clients I work with aren’t interested in climbing the corporate ladder just for the sake of it. They want meaningful work and a life that doesn’t burn them out,” Rodriguez explains.

“Many came of age during the pandemic, saw layoffs hit their parents, or experienced mental health struggles firsthand. They’ve realized that waiting until 65 to finally 'live' isn’t the goal.”

Rodriguez acknowledges that while some are pursuing FIRE with aggressive savings strategies, others are taking shorter, micro-retirement breaks and then returning to work refreshed.

“I think both approaches reflect the same mindset shift: They’re redefining success as flexibility, freedom, and fulfillment — not just titles and tenure.”

Add in the rising trend of returning to work after retiring or unretiring, and micro-retirement and FIRE become even more compelling options. If people are working well into their 70s (and beyond), younger workers might be further driven to plan periodic rest-stops rather than deferring all extended time off into their later years.

“What I love about the micro-retirement conversation is that it reframes success,” says Pavone. “It’s no longer just about saving enough for the last third of your life; it’s about aligning your financial life with your values throughout your life. And that’s a trend I fully support.”

Pros and cons of micro-retirement

While there are compelling reasons to take a micro-retirement, there are also reasons why it might not be ideal for everyone.

How to find a work-life balance

The workplace has significantly transformed in the last decade, yielding to remote, hybrid and flexible work schedules while prioritizing employee mental health and well-being. These shifts have occurred at what seems like a remarkably rapid pace.

As the workforce has evolved, so have the expectations of workers. From conscious quitting, sunlighting and moonlighting, to phased retirement, flexible retirement and micro-retirement, one thing is clear: business as usual is anything but.

And, with a solid financial plan in place that serves your broader life goals, that’s probably a good thing.

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Over the many years that I've practiced law and written a syndicated legal advice column, couples who are also business owners have asked personal questions that I am always happy to answer. Here's a recent one:

"We are thinking of having only one child, but we are worried about the challenge of not spoiling an only child. Have you any recommendations? Frankly, we are getting static from some parents who feel that a family means two children (to avoid raising) one entitled brat. Thanks, 'Becky.'"

Recently, I received an advance copy of an excellent "instruction manual" for couples grappling with these and similar issues around wanting just one child. I had the most enjoyable interview with the author, a social psychologist.

The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.

"A boy for you, a girl for me and a white picket fence — those days are gone but remain the basis for a lot of false information and questions for many," says author Susan Newman, PhD. "That's why I wrote Just One: The New Science, Secrets and Joy of Parenting an Only Child."

Incidentally, she wrote The Book of No: 365 Ways to Say It and Mean It ― and Stop People-Pleasing Forever, as well. It is a super read, too, and addresses how to say "no" to your children, whatever their ages, and why that's important. I also consulted with her on my article Parents: Just Say No to Raising a Failed Adult.

Where the stereotype came from

We've all heard the warning that, if you are going to have children, then you've got to have more than one. Ever wonder where that notion came from?

Newman gives us the answer: "We can credit the terribly flawed research in the late 1890s of psychologist G. Stanley Hall for creating beliefs that having just one child meant you would wind up with a misfit — jealous, selfish, egotistical, dependent, aggressive, domineering and quarrelsome.

"Today we are not hearing, 'Why are parents not having a second child?' and related stereotypes."

But she is quick to point out that some challenges of raising an only child can be very real, and Just One tells us how to navigate away from those risky waters.

Here's why one child for business owners is often a good choice

As you know, I'm an attorney. My wife, Anne, works with me as my paralegal, and our son is our only child. We're just like any couple running a business. Having one heathy kid, as Newman observes, "often works out best because business parents are busy and emotionally concerned about whether they are meeting their child's needs."

She underscores, "With one child, you are not double and triple torn. One little person pulling on your strings and raising your guilt level is more than enough."

Work-life balance is especially important for couples who run a business. "I can't overstress the importance of setting up a plan where you and your employees do not stay at the office every night until 9:30," Newman notes.

"Also, tell your staff that you value their spending time with their own families, so everyone comes out a winner — especially the children who will see that Mom and Dad really do want to be with them. It is the best way to retain good people who respect the boss for that concern."

Mistakes to avoid with a single child

Just One is filled with examples of what only-child parents who work very long hours must avoid doing. Topping her list: overcompensating because of guilt.

Doing everything for their children and giving them everything they want can dramatically hinder their development into well-rounded, successful adults.

Say a child wants a new bike, the latest gadget, you name it, and Mom or Dad goes out and buys it for them. Suppose the child regularly gets into trouble, and Mom or Dad always bails them out.

These behaviors have lifelong consequences, Newman points out. By saying "yes" to all of a child's demands, you are setting them up to feel entitled to whatever they want whenever they want it.

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"You are giving them a master class in preying on your guilty feelings. Constantly throwing money at a child has no long-term upside. Instead, it's long-term damage that can create a self-indulgent, me-me-me person — in effect, a narcissist who can't consider the needs of others.

"In the real world, no one wants to be involved with a narcissist or someone who feels they must always be the center of attention and will only do things their way. The lesson that 'friends are not like family and will walk away,' can be bitter, Newman says.

Chores lead to success and happiness in life

Newman cites the 85-year Harvard Study of Adult Development, which found that people who did more age-appropriate chores during childhood — starting at around age 3 — often had more professional success and happiness later in life.

"It's often easier and quicker for a parent to do an only child's chores," she points out, "especially if they feel guilty about their time at work. But responsibilities at home make most children feel capable and that they are an important part of the family, no matter what size it is — an attitude that will serve only children well as they grow up."

There is so much good, practical, accessible advice in Just One. For parents who are concerned about the impact of their child being their only child, Newman's book is one of the best books on family life that I've ever come across.

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

You might have heard about the elimination of the tax on overtime at the federal level. Overtime workers are entitled to 1.5 times their regular rate for working more than 40 hours per week.

However, what’s happening with taxes on overtime pay has sparked national debate. There’s talk about whether “no tax on overtime” will help workers or contribute to the federal deficit and incentivize employers to use longer hours instead of hiring additional employees, especially after the so-called "One Big Beautiful Bill" was signed.

But do you know how your state is weighing in on the no tax on overtime debate?

States can follow the federal “no taxes on overtime” movement or decide to continue taxing overtime income.

Here are the states that have proposed bills relating to no taxes on overtime, and where those proposals are now.

States with no income taxes were excluded from this list as they do not tax overtime. These include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Is overtime taxed more in Illinois?

Illinois has four active bills proposing no tax on overtime, “effective immediately” if signed into law:

• SB 174, sponsored by Senate Republicans, would deduct any overtime wages paid during the taxable year.
• HB 2734, sponsored by Rep. Christopher “C.D.” Davidsmeyer (R-Murrayville), would deduct overtime wages included in the taxpayer’s federal adjusted gross income (AGI).
• HB 1899, sponsored by House Republicans, would create a tax deduction for overtime compensation included in a taxpayer’s AGI.
• HB 1750, sponsored by Rep. Joe C. Sosnowski (R-Rockford), would not only exclude overtime from wages but also exempt gratuities (tips) from state income taxation.

All four “no tax on overtime” bills are being read in their respective chambers and have yet to crossover.

Does overtime get taxed more in Massachusetts?

Massachusetts might exempt overtime from the Commonwealth’s income taxes with HB 3173.

Sponsored by Rep. Marc Lombardo (R-Billerica), the bill could exclude overtime compensations from income tax in a place among those with the highest income tax rates for retirees.

However, only hourly employees would be included — not salaried. There is no enactment date for Massachusetts’ “no tax on overtime” bill.

Michigan rules for overtime tax on pay

Michigan legislators have proposed a no-tax-on-overtime bill. SB 125, sponsored by state Senate Republicans, seeks to deduct overtime compensation from the state’s taxable income.

The Great Lakes State recently raised base pay for hourly workers. Tipped employees went from $4.01 to $4.74 per hour, while nontipped worker rates went up to $12.48 from $10.56. No tax on overtime could provide further relief for hourly employees in 2025.

Overtime taxed in New Jersey

New Jersey is looking to exempt overtime pay from state income taxes. The Republican-sponsored bill would exclude overtime compensation from gross income as early as January 1 following the date of enactment.

The Garden State has some of the highest taxes in the nation. Not only is New Jersey expensive for homeowners, but the state also has one of the highest income tax rates for retirees. No taxes on overtime could help provide tax relief for some residents.

Overtime pay is taxed in North Carolina

North Carolina has a bill that includes more than no tax on overtime. Republican-led HB 11 would provide:

• No tax on overtime pay.
• An exemption of state income taxes on tips.
• An exemption on the first $2,500 in bonuses from state income taxes.

Bonus pay might include hourly and salaried workers. The bill has been passed to the House Finance Committee for review.

Does no tax on overtime start in Ohio?

Ohio might consider ending state tax on overtime. HB 39, proposed by House Republicans, would amend Ohio’s tax policy to allow a deduction for overtime wages.

This would effectively make overtime pay state tax-exempt. If signed into law, the bill could go into effect as early as January 1, 2026. However, it was only recently referred to the House Ways and Means Committee.

Does overtime get taxed in Pennsylvania?

Pennsylvania lawmakers are seeking to exempt overtime pay from state taxes. Not only that, but the Coal State might implement no tax on tips, too, if signed into law:

• HB 1586, a House Republican bill, would provide a tax credit for state taxes on overtime pay.
• HB 1514, also Republican-led, would allow for a tax credit to offset taxes collected on tips.

Currently, both bills are in the House Finance Committee for consideration. If signed into law, either bill would be effective after December 31, 2025.

Does Alabama still tax overtime?

Although Alabama used to exempt overtime pay from state income taxes, that key piece of legislation expired earlier this year.

Alabama House Democrats had introduced a bill to preserve the income tax exemption on overtime pay. But House Republicans sought to let the provision expire in favor of other state tax breaks, such as reducing the state’s grocery tax, which is set to be cut from 3% to 2% in September.

State tax on overtime

More states may weigh in on the “no tax on overtime” debate. State legislatures will meet throughout the year, and overtime income could be on the slate of bills proposed. More than just your federal tax bill could be on the line, so stay tuned.

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This is shaping up to be the year that thousands of U.S. workers will need to put away their soft pants and return to the office — at least for a couple of days a week.

A summer 2024 survey of chief executive officers by accounting firm KPMG found a sharp turnaround in views toward remote work. More than three-fourths of CEOs expect employees to return to a traditional in-office schedule within three years. Earlier in 2024, only one-third of CEOs predicted a return to an in-office model. Only 17% of CEOs expect their employees to have a hybrid schedule, and just 4% expect their employees to be fully remote, according to the summer survey.

The news isn’t all bad for the comfy-pants crowd. Eighty-six percent of CEOs said they would reward employees who return to the office with favorable assignments, raises and promotions. And research by the Flex Index, a technology research firm based in San Francisco, found that while the number of companies that allow a fully flexible workforce has declined since 2023, the percentage of companies that use a hybrid model increased in 2024.

Employers’ willingness to allow their employees to work from home, at least some of the time, also varies significantly by industry, according to research by Stanford economist Nicholas Bloom, who has studied remote work for more than two decades. Workers in the technology and finance industry, for example, work from home an average of 2.39 days a week, while workers in the hospitality, transportation and retail industry work from home less than one day a week, according to Bloom’s research.

Do workers want to return to the office?

Companies that mandate a return to the office face pushback from employees who place a high value on a flexible work schedule.

A 2024 workplace benefits survey by Charles Schwab found that many workers say having a flexible work schedule is an important benefit, particularly for younger workers. Fifty-seven percent of workers said they would forgo anywhere from 5% to 15% of a salary increase in exchange for a more flexible work arrangement. The survey also found that the ability to work from home was a must-have benefit for 27% of men and 36% of women, and more than half of Generation Z workers and 46% of millennials viewed flexibility in work hours and location as an essential benefit.

A survey by Payscale, a compensation consulting and research firm, found that more than 60% of companies with return-to-office mandates have encountered resistance from their employees. Payscale’s research also revealed that providing flexible work arrangements can help companies attract and retain talent. Payscale discovered, for example, that companies with remote work environments have much lower turnover than those with traditional office hours or even hybrid work arrangements.

Lexi Clarke, chief people officer at Payscale, says the company went fully remote in fall 2022 but provides coworking spaces in Seattle, Boston, and Denver, where most of its employees are located. The coworking offices provide a way for managers to meet with their teams and give employees an alternative if they’d prefer to work in an office, she says. “We use remote work as a lever to help us find the best talent,” she adds.

Employees who want to maintain a remote or hybrid work schedule should talk to their employers about ways in which a flexible work environment improves their productivity, Clarke says. Research supports that position. A survey of productivity growth between 2019 and 2022 by the U.S. Bureau of Labor Statistics found that remote work increased productivity in 61 business sectors. A big reason is that those employees no longer spent time and money commuting to the office.

“I’ve enjoyed working remotely,” Clarke says. “From 5 a.m. to 7 a.m., it’s just me and my coffee.”

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Almost 40 years ago, I stepped into my first role as a CEO with a national auto parts chain that was facing bankruptcy. Thanks to my reputation as a problem-solver, the board of directors decided to bring me on — an unusual choice at a time when women were often relegated to making coffee and typing up notes. There was a great deal of pressure to perform, but my strategy of hiring local talent from the neighborhood and training them on auto parts quickly slowed the volume of products being stolen from the shelves. Within a year, the financial outlook for the chain was reversed.

My first major challenge as a CEO provided me with invaluable lessons. Over the years, we all build up a hard-won library of problems/solutions and learnings that we’ve worked through whether it’s as a CEO, a salesperson or a caregiver. While technology has changed the face of business in many ways, there are still the same basic factors and levers that come into play again and again.

Older employees have seen these patterns before and have the experience of navigating them and the knowledge to construct solutions based on past successes. Combined with emotional intelligence, facility with multitasking and a resourcefulness developed from decades without digital tools, older employees provide many important benefits to a workplace. And yet, ageism in the workplace is not only increasing, but is at an all-time high.

Age discrimination is rising along with increase of older employees

Over the past two decades, the median age in the U.S. has continued to rise even as overall labor force participation is projected to decrease. By 2030, adults 75 and over are the only workforce group projected to increase in the U.S., growing 96.5%, according to the Bureau of Labor Statistics.

However, as an increasing number of older employees are continuing their careers for longer and are returning to the workforce, ageism has become a rising issue. In fact, an AARP poll found that 78% of U.S. employees 50 years or more have seen or experienced age discrimination in their workplace — the highest level in 20 years.

When I first began my career, everyone would assume the oldest man in the room was the one in charge. While companies no longer adhere to that hierarchical norm, we now see the pendulum swinging in the opposite direction. However, a rich, complementary workforce requires employees of all ages. Older, experienced employees in particular have the important role of passing along critical thinking, best practices and industry knowledge to their younger colleagues.

Employees who are tasked with navigating their business through a potential recession, for example, can discuss scenarios with an older colleague who has navigated through high interest rates and recessionary turns in the past. There is also tremendous value inherent in a workplace mentor who has perspective and can say with confidence, “I’ve made that mistake — here’s how I fixed it.”

What can you do to age-proof your career?

Combating ageism is not just a matter of being “fair” to employees — it’s critical in order to build a vibrant, adaptable, effective workforce. Unfortunately, while many employers realize the benefits of a balanced workforce, ageism remains a growing issue and one that is very difficult to root out despite legal protections. There are, however, some important habits you can develop now that will contribute to your career longevity and help you protect against age discrimination in the future:

Network and stay in touch. Never has it been easier to network than it is today, and never has it been more important. Building a robust network gives you access to valuable insights and advice while also enhancing your visibility and credibility in your industry, leading to new opportunities, resources and potential job avenues and offers.

Also think about how you are building your network. Connecting with colleagues at business functions is obvious, but are you gravitating toward certain ages or titles? Expand your horizons and make a conscious effort to engage with a range of professionals in your industry across many generations.

And, while nothing will ever beat face-to-face networking, there is a definite benefit to attending online organizations, webinars and events that allow you to share ideas with colleagues and peers from around the world with minimal effort.

Lastly, I’ve found it extremely valuable to network in social situations such as my local gym, where I mentor a vibrant group of women who keep me apprised of local business activities and news.

Share what you know. Find what you are passionate about and share it with others, cultivating something that is completely yours and that showcases your insights or skills. Whether it’s a collection, a sport or even a weekly podcast, create something that transcends your job role and demonstrates who you are.

For example, as the CEO of a company on the forefront of therapeutic wellness, I am ensuring we are rapidly adding scientific evidence and real-life successes to this field. I use my LinkedIn platform to share information about hormone optimization, preventive care and the latest in evidence-based longevity medicine. This commitment to fostering scientific research that will profoundly impact how we live and age is at the core of my professional identity.

Always be learning. Unfortunately, there will always be the stereotype of older employees struggling with technology — especially today when the youngest generation of workers were literally born with technology at their fingertips. The older you are, the more imperative it is to defy these assumptions and actively engage in learning. 

Take advantage of courses and training to ensure you are not just keeping up with technological advancements, but are surpassing them.

Even better, demonstrate that your hunger for learning extends beyond technology and into all aspects of professional growth. With technology moving so fast, you may find your young co-worker is just as unfamiliar with the new billing system as you are.

Showing your desire to learn new skills and programs is essential to defy the persistent stereotypes of older workers in the workplace.

An extended work landscape is here to stay

Rapid advances in longevity medicine combined with a proactive approach to personal health have shattered preconceptions about aging. As individuals intensify their focus on preventive care and extend better health and vitality to later years, there is often a corresponding desire to continue contributing professionally even beyond the traditional retirement age. Leveraging accumulated experience and skills is a collective investment necessary for any competitive workforce.

Fortunately, with strategic foresight and relentless career development, we can all ensure that no matter our age we can continue making impactful, respected contributions throughout our professional journey.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Is work-life balance attainable, or is it an unrealistic goal to set?

According to the Forbes Health-Ipsos Monthly Health Tracker, 90% of employed respondents noted that “work-life balance is an important aspect of their job.”

From my own experience as a C-suite executive and mom of two, work-life balance is an ever-moving target, but there are absolutely ways to achieve a better balance between work and living the life you desire. It just takes planning, focus and a little give and take from each aspect of your life.

As we start planning our goals for next year and surviving this busy and sometimes expensive holiday season, let’s use some financial tools that should lessen the stress for 2024.

Plan ahead and automate

The easiest way to save without thinking is to automate your savings and bill payments. I’m not saying set it and forget it, but set up your regular bills — such as rent/mortgage, car payment, utilities, etc., to pay automatically. It’s important to still review what’s going out and your month-over-month cost. The same goes with establishing savings goals: If your employer offers a 401(k), make sure you participate by setting a paycheck dollar amount or a percentage of earnings. Or if they don’t, setting up automatic deposits into an IRA or Roth IRA. Want to help your kids with future education expenses? Use the same method with a 529 plan, or even a separate high-yield savings account earmarked for long-term goals.

Having a plan for what will happen with your money when it hits your account takes the burden off of monitoring it daily or weekly. It’s still a good habit to set a monthly “financial review” to ensure everything still makes sense for your current situation, especially if you have a significant other.

If you’re not a fan of financial automation, set tasks on your calendar for when bills are due so there is no burden to remember all of those little details. Make room in your brain for more important things. Removing these unnecessary stressors is what helps contribute to a healthier well-being and life balance.

As we are about to start a new year, it makes sense to review your upcoming goals for the year and decide which financial objectives you are trying to hit. Whether it’s a specific tangible goal or just general financial habits you want to establish, make a plan to save monthly in a specific account for next year’s goals.

Lastly, this is a good time to review your expenses and see if there are any unnecessary subscriptions or items that you are paying for but that no longer do much for you — clean up those excess expenses and use that money for something that will bring you happiness.

Invest in yourself

Are you one of those people who takes care of everyone else but forgets to take care of yourself? If you are, now is the time to change that! A hard lesson I’ve had to learn over the years — if you aren’t taking care of yourself, then you can’t take care of the people you love.

This is something I’ve personally struggled with, and while each person has their own habits that help them with stress relief, here are some examples that have made a world of change in my life.

• Make exercise a priority. I joined Pure Barre and became obsessed with my 6 a.m. classes and the community of women I see each morning. These classes help me start my day with energy, and it’s my time before the kids wake up. Find the time where you can let your thinking brain rest and simply move your body. While classes can be expensive, it’s worth every penny for my long-term health and happiness, but find what works best for you and makes exercising fun.
• Take more walks. When I work remotely, I try to take a 30-minute walk. This is where I get my best ideas for both work and life as I listen to podcasts, audiobooks or webinars. It’s amazing what happens when you let not only your mind but your body wander! Also, “walking meetings” help get the creative juices flowing and inspire others to follow suit.
• Invest in your office setup. During the pandemic, I was having terrible back and neck problems and finally realized it was mostly due to my terrible work chair. Last year, I went on OfferUp and found a high-end chair at a discounted price. It’s made a world of difference. Since we sit at our desks so much, make sure you have the right equipment that works for you — maybe a proper desk or the ability to stand while you work or bigger screens. These all make the long hours more bearable and help you be more efficient!

Give yourself a break

We all want to feel able to “do it all,” but sometimes it doesn’t make sense not to ask for help. To start, pinpoint the chores or things you hate doing the most and, if possible, try to offload them.

Whether your spouse can help make lunches or a child can learn to fold laundry, feed the dog or take out the trash, make sure every household member is helping to pull their weight at age-appropriate levels. If you don’t have in-house support, consider utilizing outside resources, such as a dog walker, grocery delivery or housecleaning, to free up your time and energy to do something you enjoy instead of feeling burnt out and exhausted.

A great tip I heard recently from a fellow professional/parent was to plan a day off when your kids are at school. During this day off, I did things I wanted to do for myself, such as getting my hair done, browsing HomeGoods, getting a healthy lunch alone, making a batch of cookies and squeezing in some reading time. None of it had to be done — well, minus the hair — but it felt like I had a little control of my own free time and personal happiness. Or if you and your spouse need some alone time together, you should both take the day off while the kids are at school and plan a fun date day without having to pay for childcare.

As we gear up for a refreshing new year, don’t let stress and work bog you down physically or mentally. Start with these tips to plan for a better-balanced 2024 and beyond. The key to success: Keep evaluating what’s working and not working and make approachable adjustments. Having a plan, though, should help kick-start a better work-life balance from the get-go!

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The pandemic ushered in a new way of working and it hasn’t left. In fact, workers have warmed to hybrid and remote working so much that many won’t go back into the office full-time. A new survey from Bankrate reveals workplace flexibility is a top priority and that workers are willing to make significant  trade-offs to obtain a shorter work week and the opportunity to work mostly from home.  

Four day work week

The four-day work week has robust support from all groups that were surveyed. 81% of full-time workers and job seekers support working a 4-day work week as opposed to the traditional 5-day work week. Just 11% said they would not be willing to make any of these sacrifices to work a 4-day work week.

A majority of younger workers, 93 % of Gen Z and 91% of millennials , are more likely to support the 4-day work week. Their older counterparts, 87% of both Gen X and boomers , like the idea as well. More women (93%) back the idea than men (87%).

About 1 in 3 workers (37%) would be willing to change jobs or industries to secure a 4-day schedule. Other trade-offs they are willing to make include: working longer hours (54%), coming into the office or place of work more days/working fully in-person (27%), receiving fewer vacation days (16%), having a longer commute (12%) or taking a pay cut (10%).

Hybrid and remote working

The hybrid work is also uniformly popular. Of those in the workforce, 68% support a hybrid schedule, and of those workers, 73% would be willing to make a sacrifice at work to attain a hybrid schedule. The most common trade-offs include 37% of workers who would be willing to change jobs/industries and 28% who would be willing to work off-peak hours. Gen Z (85%) and millennials (77%) who prefer hybrid work are more willing to make a sacrifice to attain it than Gen X (63%) and boomers (62%).

Remote schedules also get the support of 64% of Americans in the workforce. They support fully remote schedules as opposed to fully in person, and 78% who support fully remote work would be willing to make a sacrifice to attain that situation. 

Gen Z (81%) and millennial workers (83%) who prefer to work remotely full-time would be willing to make a sacrifice compared to 76% of Gen X and 58% of boomers. The most commonly cited sacrifices: willing to change jobs/industries (42%) and work off-peak hours (35%).

“Given the high number of job openings in the U.S., employers who have the flexibility to accommodate evolving preferences for working conditions may gain competitive advances in attracting and retaining talent, particularly among younger and female workers. Employers who fail to take notice of these shifts in preferences risk losing team members,” said Bankrate Senior Economic Analyst, Mark Hamrick.

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The COVID-19 pandemic undoubtedly changed many Americans' relationships with work, including conceptions about where work is supposed to happen. Now, with new information from the Census Bureau, we can see just how drastically the pandemic changed rates of working from home, rather than in an office. 

The amount of people who worked from home in the U.S. tripled from 2019 to 2021, according to the new Census Bureau report, going from 9 million workers, or 5.7% of the total workforce, to 28 million, or 17.9%.

Where Work From Home Happened

While this increase in working from home happened across income brackets, it was drastic in higher-income brackets, with the highest-earning group going from 11% in 2019 to 38% in 2021. That also correlated with the industries that saw the biggest increases in home-based work; in 2021, 38% of people who work in finance, insurance and real estate worked from home, compared with just 8% of people who work in arts, entertainment, recreation, accommodation and food services, and 42% of people who work in the information industry were working from home, compared to 10% in 2019. 

Geographically, more people living in and around large cities were working from home in 2021, according to the Census Bureau. This was seen as a change from 2019, when people in other areas were generally more likely to work from home. The West and Northeast won out as the regions with the most home-based work in 2021, clocking in at 20% to 21% of workers, although the rates of working from home increased in all 50 states as well as D.C. and Puerto Rico. 

Colorado was the state with the highest work from home rate, at 23.7%, although D.C. jumped to 48.3% in 2021, which could have correlated with a jump in working from home in the public administration industry (from 3% in 2019 to 20% in 2021). Places with the smallest increases in the work from home rate were Louisiana, which went from 3.9% in 2019 to 8.4% in 2021; Mississippi, which went from 3.1% to 6.3%; and Wyoming, which went from 5.7% to 8.9%. 

"With the centrality of work and commuting in American life, the widespread adoption of home-based work was a defining feature of the pandemic era," the Census Bureau report says in its conclusion. "Given the differential impact that home-based work policies have on American workers — in particular, accruing disproportionately to the best-educated and highest-paid workers — the expansion of home-based work also provides a new lens through which to observe inequalities."

How the Data was Calculated, and Other Work From Home Sources

This report was put together using the 2021 American Community Survey, which included interviews conducted throughout the calendar year. That survey asks workers 16 and over how they get to work, looking at commuting options. It asks that if a respondent used different commuting methods on different days to choose the one used most often. So, for instance, some hybrid workers who work more days in the office than at home may have not been included as "working from home." 

It has been difficult to fully capture accurate rates of remote work, although many surveys and reports have been done. The Bureau of Labor Statistics tracked telework since May 2020 and found that in June 2021, 14.4% of people were teleworking, a number that dipped to almost 8% in April 2022. The Pew Research Center, meanwhile, found in a report released in late March that 35% of workers with jobs that can be done remotely are working from home all the time, a dip from January 2022, but still a big jump from before the beginning of the pandemic. 

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Who: Mahna Ghafori, age 25

What: Travel photographer

Where: Anyplace she wants

What was your life like before you embarked on your journey as a digital nomad? I was born and raised in northern Virginia and went to college at Virginia Tech. I followed the rules, got good grades and got my degree in computational modeling and data analytics—and pushed my passions for travel, photography and the outdoors aside. I got a corporate job, working at Ernst & Young in the Washington, D.C., area.

What made you decide to be remote? I had a four-hour commute each day, two hours in and two hours out in D.C. traffic. I was starting to feel really, really drained. I’ve always loved photography and the outdoors, but I wasn’t making any time for travel or for photography, and out of nowhere I found this Instagram account of traveling photographers. I had also just read the book The 4-Hour Work Week, which really inspired me to explore this whole remote working, digital nomad lifestyle. So in January 2020, I told my employer, “I’d love to still work for the firm, but my fiancé and I are planning to move out to Colorado, and I’d like to work remotely.” And they said yes.

What has it been like juggling working remotely and traveling? I would work my remote corporate job during the weekdays, and then on the weekends, or even some days after work, I would go hiking, take photographs or road-trip somewhere. Thankfully, both my fiancé and I were given the flexibility to continue to work remotely. While we were based out of Colorado, we were able to explore all the surrounding states. We went to Utah, Wyoming, even down to Arizona and out to Lake Tahoe. We were working East Coast hours in Mountain time at first, so we would start our days early and work from 7 a.m. to 3 p.m. It was more challenging when we moved to Hawaii at the beginning of 2021 and the time difference became even more dramatic.

You left your job in September? Even though it was a terrifying choice to make, I knew I had to take the leap. Originally, I decided to do an unpaid leave of absence so I could try it out for the summer and then see what direction I wanted to go. And then, come September, I was able to replace my corporate salary with my travel-photography income.

How do you manage the cost of the lifestyle? Finding a furnished place to stay as your home base with a flexible lease is key. In Colorado, when we were road-tripping, we would often stay at campsites or motels. We’ve found ways to make air travel more affordable, too. We’ve found that flights are a lot cheaper if you are looking and booking on Monday and Tuesday mornings. We try to travel on weekdays, if possible, because typically the prices will be lower.

How do you get internet access while on the go? We have been able to use a mobile hotspot, for the most part. But when we traveled to Iceland, the car rental company gave us a portable Wi-Fi booster, which was great. So we have also been looking into using that for international travel.

Where are you off to next? We haven’t really been planning anything more than a month out these days because we’ve had so many plans canceled or changed in the past couple of years. But we have ambitious plans to travel for eight months—fingers crossed that the pandemic doesn’t get in the way of that. We were recently in Quebec City, Canada, and plan to go to Costa Rica next. It’ll be a big change from the snowy climate to the tropics. I’m very excited.

See more of Ghafori’s adventures at www.mahnatravel.com.

More than half of Generation Z and millennial workers say the ability to work remotely and/or have flexible working hours is more important to them than higher pay, according to a recent survey by Bankrate.com. Although I work in a hybrid situation, I have friends who have recently relocated and never go into the office. Some are even exploring a digital nomad lifestyle, in which they travel from place to place while they work (see A Life on the Road).

Before you hit the road. First, review your company’s remote-work rules and get the go-ahead from your employer. Even if you’re already working from home, it’s important to be sure that relocating won’t violate any workplace policies.

Once you’ve decided where you’d like to live, make sure you can do your job there. If you venture too far off the grid, you may not have consistent cell-phone and internet service. Although efforts to expand broadband access are under way, wide swaths of the country still have spotty or nonexistent internet service. Visit the Federal Communications Commission’s broadband map to review coverage for specific areas at https://broadbandmap.fcc.gov. If you choose to use a mobile hotspot, shop around for an affordable cellular data plan that provides reliable service.

Create a budget with your new lifestyle in mind. The most important expense to track is the cost of housing. If you own a home and choose to become a digital nomad, renting it out will help cover your costs. You can rent your home for up to 14 days a year without reporting income to the IRS, and there’s no limit to how much you can charge. If you rent out your home for more than 14 days, you must report the rental income, but you can deduct rental expenses.

Whenever you move to another state (or states), you also need to consider how it could affect your state taxes. If you work remotely from a state where you don’t have your legal residence, you may have to file an income tax return with that state and pay tax on money you earned. However, you can usually claim a credit from your home state for any income tax you pay to another state while working there.

Some states have reciprocal tax agreements in which employees who live in one state but work in an office in another state are exempt from tax being withheld in the state where they work. If you’re required to file returns for more than one state because you moved during the year, check the reporting rules for those states.

Globe-trotters should keep in mind that every country has different rules when it comes to working within their borders. Even if you’re still working for a company in the U.S., you may need to apply for a work visa if you relocate abroad. Some countries, such as Costa Rica, Taiwan and the Bahamas, are offering visa programs tailored to remote workers who want to temporarily relocate. Use the key words “Digital Nomad Visa” to search online for countries offering these programs.

U.S. citizens owe U.S. taxes no matter where they live. However, if you remain outside the U.S. for a year or more, you may qualify for the foreign earned income exclusion, which allows you to exclude up to $112,000 of foreign earnings from your income in 2022. Some states will continue to levy taxes on your income.

For the first time in history, American workplaces encompass employees spanning five generations, from those born before World War II to those who have never known life without Google. The main reason for this generational diversity? People are working longer, sometimes into their 70s and 80s.

As businesses grapple with the fallout from the Great Resignation and the resulting labor shortage, employers want employees of all ages to feel valued so that they don't look for a new job or decide to retire. But hitting all the right buttons with a five-generation workforce isn't easy. "I think everyone is looking for the silver bullet that will serve all generations," says Lindsey Pollak, a workplace consultant and author of The Remix: How to Lead and Succeed in the Multigenerational Workplace (HarperCollins, $29.99).

Money only goes so far, experts say. Once people feel fairly compensated, other benefits matter more. "We're seeing salaries rising, but also higher quit rates so salary isn't the whole thing," says Andy Challenger, a senior vice president at employment consultant Challenger, Gray & Christmas. In fact, the benefits that seem to count the most are often the same ones that people needed during the pandemic: work-life balance support. Employers are just looking for ways to apply those benefits broadly to workers of all ages, he adds.

A Better Way to Work

The No. 1 benefit workers of all ages want is flexibility in how and where they work. According to a July survey by Challenger, Gray & Christmas, 68% of the 172 human resource and business leaders surveyed are worried about employees leaving their companies, and 73% -- the highest percentage by far -- say they believe flexible workplaces will keep employees from fleeing to the competition. "We saw the trend starting before the pandemic; it was something people wanted but very few companies offered," Challenger says. "The pandemic has accelerated the trend by five to 10 years."

During the pandemic, many employees had the autonomy to work the hours they wanted as long as they remained productive. Remote work may be part of this newfound freedom or a separate perk, but the workers driving this trend may be broader than companies realize. While some surveys find younger people are more eager for flexible hours, others -- like a survey from workplace automation platform Nintex -- show that senior employees adapted more easily to working at home and younger workers, especially those in entrylevel jobs, felt more isolated and overwhelmed. Meanwhile, a Pew survey found that most workers, no matter their age, preferred a hybrid option rather than returning to the office full time.

The difference in remote work is likely to be more class-based than generational, says Rhetta Standifer, an associate professor in the department of management and marketing at North Central College in Napierville, Ill. "Mostly white-collar workers will have that luxury. The people serving customers day in and day out have to be there," she says. Remote work "is going to be broadly attractive but not broadly accessible."

Caregiving Support

Although it's long been an issue for many workers, the ability to care for family moved front and center during the pandemic. When schools and senior centers closed, employees were left juggling the competing demands of work and family.

Most employer caregiving benefits, if they exist at all, tend to focus on child care, but other types of care are just as crucial, says Bob Stephen, AARP vice president of caregiving and health. "This is something we were trying to build awareness of before the pandemic." According to a 2020 SPC Global and AARP survey, 66% of employers said they were very supportive of parents with children age five or younger, but only 32% said the same about employees taking care of aging parents, spouses or another adult.

The need for caregiving benefits spans multiple generations, not just Gen X (born between 1961 and 1980), the age cohort that typically comes to mind as today's sandwich generation. In fact, an AARP survey found that 23% of caregivers are millennials (born between 1981 and 1996), and 6% are Gen Z (1997 to present). Young adults might be taking care of parents, grandparents or a sibling with special needs.

During the pandemic, many companies increased their caregiving benefits, generally by offering work flexibility and mental health resources. Other benefits included subsidized backup care, access to a caregiver database, or a concierge or coach to coordinate actual care, says Dani McCauley, senior vice president and customer experience leader for Aon Voluntary Benefits. Aon is one of the world's largest insurance brokers. Some companies also offered paid caregiver leave along with standard paid leave. In some cases, employers helped coordinate caregiving support groups.

The jury is still out on whether these benefits will become permanent once the crisis wanes. "These caregiving benefits will continue in some form," Stephen says. "I don't think they will stay where they are now, but I think it will be really hard to roll them back." In another AARP survey of caregivers, 43% of respondents said they would look for other jobs if work flexibility and caregiving benefits are rolled back.

Employers may be asking about caregiving benefits more, McCauley says, but that doesn't mean they are pouring money into them. She thinks companies are testing the waters to see which new or expanded benefits will attract and retain employees.

Two-Way Mentorships

Working remotely also prompted employers to rethink how far-flung employees can work better together. In the process, companies are discovering that mentoring is really a two-way street, particularly because younger workers are far more fluent in digital technology. "When I started in the workplace, I had no skills," Pollak says. "If you had 30 years experience and I didn't, the understanding was you could do technical things I couldn't. Now, my 10-year-old can do things on a computer that a CEO can't." The technological edge of younger workers is more relevant in some fields than others, but "it changes the power dynamic," she says.

Some firms are giving traditional mentorships a new twist, with not only senior workers counseling junior employees but younger colleagues teaching older ones to become more technologically proficient. Young adults, raised on group projects in school, are used to collaborating, says Karen Strating, founder of KLS Consulting, a leadership development company.

A New Generation of Leaders

A new generation of leaders -- Gen X -- is shaping the workforce. Sometimes known as the forgotten generation, Gen X now runs many companies. "They hold 52% of leadership roles and are playing a huge role in guiding the workforce," says Stephanie Neal, director of the Center for Analytics and Behavioral Research at DDI, a global leadership consultancy firm.

In a 2021 global survey of company leaders and human resource executives, DDI found Gen X will play an even more critical role in the next 10 to 15 years. Neal notes that Gen X bosses had more employees reporting directly to them during the pandemic than any other age group. And digitally, she says, Gen X leaders are often better at leading virtually, perhaps because they were more likely to have subordinates who worked remotely even before the pandemic.

Still, Gen Xers receive fewer promotions than boomers or millennials, Neal says. Certainly, millennials are further down the career ladder and have more room to move up, but she adds, "companies don't always look at Gen X as leaders. They're being leapfrogged over, probably because, as a general trend, millennials are looked to more as the future."

To keep Gen X as well as other generations happy, employers will need to pay attention to some of the same enticements, like promotions and career development, that they relied on before the pandemic, Strating says. "At the end of the day, it really is more about the work environment, about being able to contribute, grow and develop."

Mortgage rates have been ticking down from recent highs, and the housing market is beginning to show signs of life, according to Kiplinger's housing outlook. As temperatures warm, you might be thinking about investing in a vacation home. 

To help you navigate the vacation home market, we’ve explored what to expect as you search, ways to make your offer stand out, and mortgage and tax considerations. 

Searching for a Vacation Home

If you’re eyeing a place that you’ve visited only as a vacationer, keep in mind that owning a home there comes with a different set of concerns. Talk to locals about living in the area, and visit it during the times of year you plan to be there. 

You may realize that a community quiets down — with some restaurants and shops closed — more than you may have expected during certain seasons, or that you don’t like being there when it’s most active, said Cara Ameer, a Coldwell Banker agent near Jacksonville, Florida. Find out whether the community normally offers activities and entertainment you’ll enjoy during extended visits — say, golf courses, great restaurants or an arts scene.

Do you prefer a condominium, a detached home or something in between, such as a townhouse or duplex? A house may offer more privacy and you won’t have to worry about pet restrictions or other limitations that sometimes come with communal properties. But you’ll likely have increased responsibilities that may be tougher to manage when you’re not there, such as snow removal, lawn mowing and landscaping. 

With a condo, the association typically takes care of such tasks (although you’ll likely pay a fee to cover them). Plus, internet and cable may be included. Especially if you’re interested in an attached property, try to get a sense of whether the neighbors frequently rent out their properties. “Nobody wants to find out that it’s like a fraternity party every weekend in the summer,” said Ameer.

If you live hours away from your vacation-home destination, you may have limited time to visit properties. Look for 3-D virtual tours that let you digitally walk through homes, giving you a better idea of the layout than regular photographs. Or your agent may give you a live video tour through FaceTime, Zoom or a similar app. That may help you narrow down your list.

Don’t Bust your Budget on a Vacation Home

Snagging a bargain can be tough, but you can use a few strategies to help keep the sale price in your range. 

One is to shift away from central locations and extend your search to outlying areas. Brenda Wild, a Berkshire Hathaway HomeServices Signature Properties broker owner in Aspen, Colorado, told Kiplinger she has seen a surge of interest in towns such as Carbondale and Basalt over the last few years, where "you can get more for your money, and you're not that far away" than in ski towns Aspen and Snowmass. Aspen's dynamics have changed since the start of the pandemic as more people moved there, Wild said, making the nearby towns more attractive. Basalt also recently saw the opening of a new arts center, adding to and showing the expected continued strength of the community appeal.

Ameer said buyers who go an hour and a half south of Ponte Vedra Beach, Florida, where she is based, may find less-expensive properties in quiet coastal towns — but they’re further from the activities and upscale amenities some buyers prefer.

You may be able to get a deal by buying during off-peak tourism seasons. In the Ocean City area, September through December is typically a good time to buy, said real estate agent Nancy Reither.

If a turnkey home — one that requires no extensive repairs — is fairly priced and in a prime location, chances are high that multiple buyers will put in bids. With limited availabilities, you’ll have to act swiftly from the time it’s listed to submit an offer. Work with an experienced, full-time agent, who will more likely have a deep knowledge of the local market and be available to move more quickly than someone who works part-time, said Reither.

A few tactics may help make your offer stand out. If you can swing a cash offer, that’s often attractive. But find out what’s important to the seller — not all sellers prioritize cash bids or the highest-price offer. Sellers often favor “clean” contracts with as few contingencies and extra requests as possible — so you may want to avoid asking the seller to, say, pay for a home warranty or let you keep the gas grill on the patio. But it’s generally a bad idea to skip the home inspection.

Ask about the seller’s preferred timeline to complete the sale. If the owner hopes to keep the home for a few more months and you’re up against other bidders who propose a 30-day window, you may win by offering flexibility to let the seller stay for a while. 

If price seems to be the seller’s main concern, one trick is to include an escalation clause in your offer. You may, for example, propose a $350,000 sale price but include a condition that you’ll pay $1,000 more than the highest competing offer, up to $360,000. If you’re getting a mortgage, include a preapproval with your offer.

One other idea: Write a letter to the seller describing yourself and the reasons you love the home. Especially if the owner occupied the home — rather than renting it out to vacationers full-time — “that can really touch their heart,” said Sindy Ready, a Remax agent in Scottsdale, Arizona.

Plan for Routine Expenses on a Vacation Home

Before you commit to a home, consider all the ongoing costs that come with it. For example, if you buy where skiing is popular, the heating bill could be substantial. The same goes for the electricity bill for air-conditioning in hot-weather locales. Be sure you understand seasonal maintenance and special fixtures you may need. 

In coastal Florida, you’ll have to get hurricane shutters and have someone on hand who can quickly apply them and secure your property if you’re away when a storm is approaching, said Ameer. If you don’t frequently visit the home yourself, someone should regularly check it for leaks or other problems, and you may need to hire services for snow removal, pool and lawn upkeep, or other maintenance.

Check into the type of insurance coverage you’ll need and how much it costs. Flood insurance is a must in areas at high risk of flooding, and your mortgage lender may require it in certain areas. If the property is part of a homeowners or condo association, look up its fees.

As you create a budget, don’t overlook kitchenware and furniture to put both inside the home and on a patio or poolside. You’ll also want to estimate the cost of travel to and from the property each year. Some vacation-home owners buy another car or truck to keep at the new home, and if you’re near water, chances are you’ll want a boat.

Financing and Taxes for a Vacation Home

If you’re getting a mortgage, it’s often smart to use a local lender. It may move more quickly and efficiently than a bigger institution, and it is likely to send out an appraiser who is familiar with the area and who may provide a more accurate estimate of the home’s value than someone from outside the region. Ask your real estate agent for recommendations.

Mortgages for second homes differ from those for primary homes in a few ways. Borrowers who encounter financial difficulties are more likely to default on a second-home mortgage than one for a primary residence, and lenders take that risk into account. Interest rates are often slightly higher for second-home mortgages than for primary-home loans, said Keith Gumbinger, vice president of mortgage-information site HSH.com. You’ll have to make a down payment of at least 10% (for a primary home, you may be able to put down as little as 3% with a conventional mortgage), and some lenders require 20%. 

Minimum credit-score requirements are a bit higher than those for primary homes. With a loan-to-value ratio (the amount you owe on the loan as a percentage of the home value) higher than 75%, you may need a minimum FICO score of 680 to qualify (on a scale of 300 to 850), compared with about 620 to 640 for a primary-home loan, said Gumbinger. You’ll likely be required to have cash reserves to cover at least a few months’ worth of mortgage payments. 

You may expect to earn some rental income (see below), but such potential earnings won’t help you qualify for a loan on a second home. If you won’t occupy the home and plan to rent it out full-time, it’s considered an investment property, and rental income may be considered.

Tapping equity in your primary home is one way to raise cash for your second-home purchase. Your options include a home-equity loan or line of credit or a cash-out refinance, in which you borrow more than you owe on your primary home and take the extra money as cash. 

For mortgages obtained after Dec. 15, 2017, homeowners who itemize on their federal tax returns can deduct interest on up to $750,000 in total loan balances ($375,000 if married filing separately), including both a primary and a second home; for older mortgages, you can deduct interest on up to $1 million of debt, or $500,000 if married filing separately. If one of your mortgages falls into the first category and the other into the second, consult a tax adviser for help, suggested Mark Alaimo, a certified public accountant and member of the American Institute of CPAs Personal Financial Specialist Committee. You may also be able to deduct state and local property taxes, up to a $10,000 combined limit ($5,000 if married filing separately) on state and local income, sales and property tax.

If you live in your vacation home more than 14 days or more than 10% of the total days you rent it out at a fair rental price (whichever is greater) during the tax year, the IRS considers it your personal residence and not exclusively a rental property. 

If you rent out your vacation home fewer than 15 days per year, the rental income is tax-free. If you rent it out more than 14 days per year, you must report the rental income on your tax return, and you can deduct rental expenses such as for mortgage interest, real estate taxes, maintenance and utilities. But you can deduct only the portion of those expenses incurred while renters are using the home.

Renting Out a Vacation Home

You may plan to rent out your property when you’re not visiting it yourself to help defray costs, but read up on the community’s rules regarding rentals. Some homeowners or condo associations disallow short-term rentals at all times, and some may prohibit renters from using facilities such as the pool or gym.

If you do decide to rent out your home, there are other associated costs to consider. This can include house cleaning, new decor and updates, photography for listings, and the cost of time and effort to manage rentals.