How to Optimize Your Retirement Savings After a Career Break

CH Blogger


Are you one of the millions of Americans considering heading back to work after taking a career break to care for a loved one? Thinking about rebooting your career might leave you feeling giddy or even anxious and uncertain. Whether you have been out of the professional world for two years or 12, relaunching your career can mean exciting new possibilities for your professional and financial goals.


Once you’ve decided the time is right, sites like iRelaunch can help make it easier to get the ball rolling. As you begin thinking about the type of work you want to do, take time to consider the benefits and salary you want too. After all, going back to work is an opportunity to achieve your professional and financial goals. 


Speaking of financial goals, it might make as much sense to be strategic in how you optimize your retirement savings as it does for networking and job hunting.  


The value of a written plan

“Workers with a written plan are retirement strategists,” according to the Aegon 2017 Retirement Readiness Survey from the Aegon Center for Longevity and Retirement. This same survey tells us, “An essential ingredient for achieving long-term financial security is having a well-developed strategy. However, when asked about their retirement strategy, the survey found that only 14 percent of workers globally currently have a written plan. A further 44 percent say they have a plan but that it is not written down. Two-fifths (38 percent) have no plan at all.”


As you outline your plan of attack for reentry, consider writing down your retirement savings strategy as well. It can help you more effectively implement your plan, which might result in closing the gap in your retirement savings faster. The Aegon survey says those who write down their retirement plan are 26% more likely to put their plan into action.


Going back to work can provide exciting benefits and opportunities. Being strategic about what you do with your new income can help you make the most of the money you’re making.


Have you recently returned to work? Share your experience with our community.


Looking for additional information on how to maximize your new income? Visit Knowledge Place and read our article “You Got a Raise Now What?”



1 Comment

Another positive aspect to writing down your retirement plan is that it will force you to do some research and create something that is realistic and likely to meet your needs. If you keep all your plans in your head, it's easy to gloss over the details of it.