Question: I’ve got $10,000 from my year-end bonus, and I want to keep it safe but still earn something. Is a CD or a money market account the smarter move?

Answer: It’s a natural question to ask right now. With your bonus in hand and interest rates slipping after the Fed’s rate cuts this year, deciding where to put that $10,000 can feel surprisingly tricky.

Certificates of deposit (CDs) and money market accounts (MMAs) remain two of the safest, most popular options. Both offer FDIC/NCUA insurance, both earn interest and both protect principal. But the best choice for your $10,000 depends heavily on two things: timeline and liquidity.

Let’s break down how these accounts work today, including updated earning tables, so you can choose the smarter home for your year-end bonus.

What’s the main difference between a CD and a money market account right now?

The main difference between a CD and a money market account right now is rate certainty versus rate flexibility. A CD locks in a guaranteed APY for a set term (anywhere from three months to several years). No matter what the Fed does next month or next quarter, your rate won’t change. That predictability is valuable in a declining-rate environment like the one we’re entering.

A money market account, however, has a variable rate. APYs can adjust up or down depending on market conditions and bank pricing decisions. For savers who want liquidity and the ability to move funds anytime, MMAs offer more flexibility.

How do liquidity and access differ?

CDs restrict access while money market accounts don’t. With a CD, withdrawing before maturity typically triggers an early-withdrawal penalty. That makes CDs better for money you know you won’t need for a set amount of time.

Money market accounts allow withdrawals and transfers as needed. While some banks impose monthly transaction limits, you can generally access your cash penalty-free, making MMAs ideal for near-term goals or emergency-adjacent savings.

Are both options equally safe?

Yes, as long as you stay within insured limits. Both CDs and MMAs are insured up to $250,000 per depositor, per institution, through the FDIC (banks) or NCUA (credit unions).

In terms of safety, they’re essentially identical.

How much a $10,000 CD earns at today's best rates

CD rates have drifted down slightly following recent Fed action. But some terms like one-year CDs remain competitive.

Earnings assume interest is compounded annually.

The biggest advantage here is the certainty: once you lock in a CD, the rate is yours regardless of economic shifts. If the Fed cuts again, as many expect, today’s 12-month yields may look unusually attractive compared with what banks offer three or six months from now. For savers wanting predictability, that’s a major benefit.

How much a $10,000 money market account earns right now

Money market accounts remain competitive even as rates cool, with many high-yield MMAs still offering around 4.25% APY. Because the rate is variable, earnings calculations below assume monthly compounding and no changes to APY over the period.

What stands out is the combination of liquidity and competitive returns. While a money market account can’t guarantee the rate won’t slip, it gives you significantly more flexibility.

Many banks also offer these accounts with low monthly fees, making them accessible for everyday savers. For short-term horizons, especially under nine months, today’s best MMAs earn slightly more than comparable CDs.

Use the tool below to quickly explore and compare some of today's top savings account offers:

CD vs. money market account returns compared

Below is how the two products compare head-to-head across common savings timelines:

Across most terms, the money market account slightly outperforms the CD, with the largest edge appearing over longer periods as compounding works in its favor.

The notable exception is the one-year CD, which is currently offering elevated rates that many analysts expect won’t last. If you’re attracted to locking in one of the last remaining CD terms with a “4-handle,” this is the window.

When a CD makes more sense

A CD is most effective when you value rate protection and you’re confident you won’t need to touch the money. For people with a fixed savings goal like an insurance premium due next year, a future home improvement project, tuition savings or wedding costs, a CD gives you exact, predictable earnings without requiring active management. CDs also make sense right before a rate-cut cycle.

Locking in a higher APY shields you from the declines we often see in variable-rate products after the Fed shifts its policy stance. If you’re someone who finds peace of mind in structured savings and guaranteed outcomes, a CD delivers clarity at a time when interest rates are in flux.

When a money market account makes more sense

A money market account is the better choice when liquidity or flexibility is your priority. This is ideal for savers who want their bonus accessible at any moment whether for emergency expenses, a home repair, a flight deal you can’t pass up or simply because you prefer not to lock up your cash.

While MMAs don’t guarantee the rate won’t drift lower, they still tend to retain strong competitiveness, especially in the online banking sector where promotional APYs remain plentiful.

If your timeline is short or uncertain, or if you’re looking for a place to keep cash while evaluating potential investment opportunities, an MMA lets you earn a solid return without sacrificing access.

How to decide between the two

The simplest way to choose is by assessing your timeline and your liquidity needs. If you know with certainty that you won’t need the money for at least 12 months, a CD may offer a slightly higher return with rate protection. If you’re unsure about your plans or may need access at any point, the money market account is the safer, more flexible pick.

You should also consider how sensitive you are to rate changes. If locking in a guaranteed APY brings peace of mind, that’s a strong argument for a CD. If you’re comfortable with the variability and you prefer being able to move money freely, an MMA offers the better balance of return and accessibility.

Final takeaway

If you’ve received a $10,000 year-end bonus, you’re entering 2026 with options. Both CDs and money market accounts are safe, federally insured, and deliver attractive yields compared with traditional savings accounts.

In today’s environment, the money market account typically comes out ahead for most time frames thanks to its liquidity and strong APYs, while the one-year CD remains a standout for its combination of guaranteed yield and rate certainty.

The right choice ultimately comes down to how soon you’ll need the money, how much flexibility you want, and whether locking in a rate before the Fed’s next move aligns with your financial strategy.

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If you're a high earner or affluent professional, you might feel a profound sense of whiplash. You've done everything right — you maximized your retirement savings, paid down your mortgage and watched your portfolio grow.

Yet, the threat of a "jobpocalypse" can still feel unsettling.

The good news is that this anxiety is a signal to act, not panic. Your goal now isn't just to grow your money; it's to use that wealth to buy yourself optionality — the freedom to choose your next move, negotiate from strength or take the time you need to find the right next opportunity without financial stress.

A key lesson from this new era of job volatility is simple: Liquidity is your ultimate defense, and optionality is the ultimate luxury.

The 18-month rule: Your career gap insurance

For years, standard financial advice suggested keeping three to six months of expenses in an emergency fund. For high earners, that advice is woefully inadequate.

Think about it: Replacing a six-figure salary requires a specialized job search that takes time. Networking, interviews and due diligence can easily stretch beyond a year. That's why you need to upgrade your financial defenses.

The new gold standard for affluent families is the 18-month rule of fixed expenses.

This rule dictates setting aside 18 months of your non-negotiable costs — the expenses that keep the lights on and the family running smoothly.

What goes in your 18-month safety net?

• Housing. Mortgage or rent payments, property taxes, HOA fees
• Debt service. Car payments, student loan minimums, etc.
• Insurance. Health, life, auto and home premiums
• Non-negotiable family costs. Essential groceries, utilities and fixed costs like private tuition or necessary childcare

You should keep this capital in highly liquid, low-risk accounts — think high-yield savings accounts, money market funds or short-term Treasury ETFs.

This money is your career gap insurance, providing you with the peace of mind that you will not have to liquidate growth assets — like your stock portfolio — at a loss just to cover the rent.

Creating the financial eject button

Beyond holding cash, strategic planning requires creating immediate, low-cost access to capital that doesn't force you to sell your investments. We call this the financial eject button.

While we generally advise paying off high-interest consumer debt, not all debt is bad. Low-interest, tax-deductible debt, like your primary mortgage, is often efficient to carry.

However, the real strategic move is setting up a contingent source of liquidity while you are still employed and highly creditworthy.

• Home equity line of credit (HELOC). If you have significant equity in your primary residence, a HELOC offers a flexible line of credit secured by your home. It's inexpensive to establish and costs you money only if you actually draw on it.
• Pledged asset line (PAL). Offered by most brokerages, a PAL allows you to borrow against the value of your non-retirement investment portfolio.

The value of these facilities is simple: They are preapproved, ready to deploy and can provide immediate, non-taxable cash flow if your income stops.

Establishing these resources now ensures that you avoid the worst-case scenario: being forced to sell good, long-term investments into a declining or turbulent market just to cover an unexpected expense.

Your career is an asset: Reinvest in it

Just as you audit your investments, you must audit your career. With artificial intelligence rapidly transforming how work gets done, the durability of even highly compensated specialized roles is questionable.

You must treat your professional standing as a primary wealth-generating asset that requires continuous strategic reinvestment.

Ask yourself: Are your specialized skills complementary to AI or easily replaceable by it?

Make the "résumé refresh" a low-effort, year-round discipline. This means:

• Networking. Make time for one meaningful professional conversation per month.
• Upskilling. Identify new certifications or adjacent skills that make you adaptable.
• Auditing. Periodically update your résumé, even if you're happy in your role.

Finally, remember that the true measure of your wealth is not your net worth, but your well-being. Your financial strength should empower you to trade a small amount of income for a dramatically increased balance and fulfillment.

The true value of your wealth plan is the confidence it grants you to say, "No, thank you" to a toxic environment or an unsustainable work pace.

By adopting the 18-month rule, establishing your financial eject button and continuously investing in your own adaptability, you move beyond merely surviving market changes.

You achieve the financial fortitude necessary to navigate whatever comes next — and do so entirely on your own terms.

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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.

The assumption that "we make too much to qualify for aid" is one of the costliest misconceptions in higher education.

In reality, billions of dollars in scholarships, grants and state workforce incentives are available — many with no income restrictions at all.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

The families who benefit most aren't the ones who spend hours filling out random scholarship applications, but those who approach funding strategically, much like portfolio management.

Here are four overlooked avenues of "free money":

1. Merit aid as the new recruitment tool

Colleges are increasingly using merit scholarships to attract high-performing students, regardless of their financial need.

At many universities, 22% of all undergraduates receive merit-based aid. Some private institutions and regional universities offer non-need-based aid to half or more of their full-time students as a competitive strategy to attract specific applications.

These institutional awards serve as tuition discounts, some renewable for up to four years.

Families can gain an advantage by building a list of target schools where their student's academic profile (GPA, test scores, extracurriculars) lands in the top 25% of admitted applicants.

Many institutions publish "automatic merit" charts showing thresholds for guaranteed awards.

A strong GPA and solid test performance can translate into five-figure savings per year — making merit a powerful lever even for wealthy households.

2. Skill-based scholarships in high-demand fields

Not all scholarships are based solely on grades or financial need. Many reward skills and interests that align with the future workforce. For example:

Cybersecurity and IT. The CyberCorps Scholarship for Service pays full tuition and a living stipend in exchange for federal service after graduation.

Semiconductors and engineering. Schools like the University at Albany offer scholarships funded under the CHIPS+ Act to train engineers for the microelectronics industry.

Esports and digital media. Over 300 colleges now offer esports scholarships that can stack with academic awards.

These programs focus on ability, not income, and often lead directly to internships or guaranteed job placement.

3. State 'Workforce' and 'Promise' scholarships

Nearly every state now funds "last-dollar" scholarships that cover tuition gaps after other forms of aid have been applied. Many are tied to high-demand fields such as health care, teaching and public safety.

Some examples:

• New York state's Scholarships for Academic Excellence award scholarships of $500 and $1,500 per year to students achieving academic excellence while in high school.
• The Kansas Promise Act Scholarship covers tuition for designated programs like logistics, nursing or cybersecurity if recipients work in-state for two years after graduation.
• The Maryland Workforce Shortage Grant supports majors in education, therapy, social work and other public service areas.
• The New Mexico Opportunity Scholarship covers up to 100% of tuition and required fees at public colleges for eligible residents.

These programs are structured for accountability: In exchange for service or residency commitments, students can graduate debt-free or with minimal debt.

To learn more about available scholarships and grants within your state, visit Edvisors.com to access links to scholarships and grants per state.

4. Employer tuition benefits (for students and professionals)

Employer-funded education is one of the most underused forms of "free money." Some examples:

• The Starbucks College Achievement Plan covers 100% of tuition through Arizona State University's online degree programs.
• Walmart's Live Better U program pays tuition and for books at partner schools nationwide.

Some of these opportunities are also available to dependents or part-time employees.

For professionals pursuing graduate degrees, many companies offer $5,000 to $10,000 annually in tax-advantaged tuition assistance — a benefit that can be paired with scholarships and 529 funds.

Strategic families utilize these employer programs as an asset class — layered on top of merit and grants — to minimize cash flow strain.

Integrating scholarships into a total funding strategy

For high-net-worth households, the real advantage comes from coordination — aligning scholarships, 529 plans, grants and savings into a coherent strategy.

A few high-yield moves:

• File the FAFSA anyway. Many merit and state programs require it, even if you don't qualify for need-based aid.
• Time your 529 withdrawals. If your student secures substantial merit or state aid, you can preserve 529 funds for graduate school or later years.
• Leverage credible planning tools. Resources available on Edvisors.com, where I am the chief marketing officer, help families compare college costs, explore scholarship options and understand how aid packages interact with personal savings.
• Know each college's stacking policy. Some institutions cap total aid at tuition cost; others allow overage for housing or books. Always verify in writing.

This disciplined approach transforms scholarships from a side pursuit into a core component of financial planning.

Quick wins for National Scholarship Month

Audit your college list for automatic merit. Check published grids and note eligibility thresholds.

Target workforce-aligned programs. Identify three scholarships linked to your student's intended major.

Explore employer partnerships. A part-time or summer job with an education benefit can offset thousands in tuition.

File the FAFSA before year-end. It's the single-most-efficient eligibility trigger for all types of aid.

Document your student's "skills profile." Compile achievements — coding contests, leadership roles, athletics — that strengthen competitive awards.

Bonus tips: How to negotiate a merit bump

Time it right. Wait until your student receives multiple admission offers. Colleges often have flexibility during late winter when they're finalizing enrollment numbers.

Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.

Be specific, not emotional. Send a short, professional email to admissions that says something like, "We're grateful for the $12,000 scholarship offer. [Competing university] has offered $15,000. Is there any room for adjustment?"

Most schools will re-evaluate awards if the student fits a high-priority profile.

Confirm renewal terms. Many scholarships require maintaining a minimum GPA or credit load. Always get renewal criteria in writing to avoid surprises later.

The bottom line

"Free money" isn't about luck — it's about alignment.

By blending scholarships, state programs, employer benefits and strategic timing, even affluent families can significantly reduce college costs without sacrificing investment goals or liquidity.

In the end, the smartest move isn't chasing the biggest award — it's treating college funding with the same precision you bring to every other part of your financial life.

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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.

Contributions to these investment accounts grow tax-deferred, and you can withdraw funds tax-free for qualified college expenses, such as tuition, room and board, computers, and books. Most states and Washington, D.C., also offer a tax deduction or credit for residents who contribute to their state's plan.

Over the years, tax-free uses for 529 funds have expanded to include some other educational costs, too, including apprenticeship programs and tuition for kindergarten through 12th-grade schooling. The One Big Beautiful Bill Act, signed into law over the summer, has further extended the ways you can use 529 money, including a wider range of postsecondary educational programs.

What's covered by 529 plans now

Under the new rules, you can now withdraw 529 funds tax-free for tuition, books and other fees associated with qualifying non-degree credential programs, including for plumbing, electrical work, HVAC and welding.

Programs listed under the Workforce Innovation and Opportunity Act generally qualify; you can look up your state's directory of WIOA-eligible programs on CareerOneStop, the U.S. Department of Labor's career, training and job-search website. You can also check for eligible programs in the Web Enabled Approval Management System (WEAMS), maintained by the Department of Veterans Affairs.

Additionally, withdrawals from a 529 are tax-free for certification and licensing expenses and for continuing education required to maintain those licenses. For example, you may use funds to prepare for and take exams required to practice law or become a certified public accountant. Professionals such as teachers, nurses and real estate agents may use 529 money for continuing education to retain their licenses or certification.

If you've been saving money in a 529 for your child, these new rules broaden the options for how they can spend the funds. Or, if you need to take continuing-education courses for your current job or want to learn new skills for a career pivot, you could benefit, too, says Mary Morris, CEO of Commonwealth Savers, Virginia's program for tax-advantaged education savings.

You can change a 529 plan's beneficiary to another member of the family. So if your child doesn't need all the money in their account — say, because their educational expenses were lower than expected — you could switch the beneficiary to yourself and use the funds for your own education.

Note that provisions in the Big Beautiful Bill Act also let families use up to $20,000 per year for elementary and secondary school tuition, course materials, tutoring, fees for standardized tests, and more. Previously, qualified withdrawals of 529 money for K-12 students were limited to tuition, up to $10,000 annually. (The $20,000 limit starts in 2026.)

Not all states have altered their rules to follow the federal government's expanded uses for 529s, so make sure to check your state's policies.

The Roth option for 529s

Keep in mind that thanks to the SECURE 2.0 Act, passed in 2022, there's another way to put leftover 529 money to good use. You can roll over the funds, up to a $35,000 lifetime maximum, into the 529 beneficiary's Roth IRA, tax- and penalty-free.

Rollovers must be within the annual Roth contribution limit, which is $7,000 in 2025 and $7,500 for 2026. The 529 plan must have been maintained for the beneficiary for at least 15 years before you can do the rollover.

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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If you’re leaving for a better job, starting a business or stepping into retirement, the words can be thrilling. But if all you have is a dream and a blank calendar, they feel very different.

That’s the position I found myself in. After 10 years in a finance job, I took a leap and decided to write full-time. In this job market, I fully understand why people reacted with some version of concern or disbelief, as U.S. layoffs hit their highest October level since 2003.

Still, I’d rather know I took the risk than wonder for the rest of my life what might have happened if I hadn’t.

Behavioral researchers have long found that people regret what they don’t do more than what they do. And throughout history, leaps like these have preceded many well-known success stories. Jimmy Iovine left a stable career in recording studios to launch Interscope and eventually Beats. Howard Schultz left a rising corporate career to buy a small Seattle coffee shop.

Of course, not everyone ends up in a bestselling biography or on a magazine cover. Most people are just trying to build a stable life, save for retirement and avoid getting blindsided.

As someone who covers retirement professionally, I wanted to understand what this choice might mean for my long-term finances, especially my retirement prospects.

What happens when you step out of full-time work, whether by choice or by circumstance?

The financial impact of leaving work

The first reality is that leaving a job, even for a short period, can create long-term financial consequences.

Economists have studied this for decades, and the impact can be significant. For instance, research from the Brookings Institution shows that workers who lose a job see their earnings fall sharply, dropping by more than half in the first year after displacement. Earnings do recover over time, but not fully. Even ten years later, displaced workers earn roughly 25% less than similar workers who weren’t displaced.

Wealth takes a hit as well. A Department of Labor report found that household wealth remains about 8% lower six years after a job loss.

As advisor Melissa Caro, CFP® and founder of My Retirement Network, told me, "A break from steady employment hits you in two ways: lost contributions and lost compounding. You’re not just trying to replace a missed deposit; you’re trying to replace years of growth you never got."

I’m moving into freelance work, which means inconsistent income while I build up my client base. Until the work steadies, I’ll rely on my emergency fund as needed. If things become too tight, I may have to entertain tapping retirement funds. That’s something I know the numbers strongly discourage, yet it is relatively common.

A survey from the Transamerica Center for Retirement Studies shows that 37% of workers have taken a loan, an early withdrawal or a hardship withdrawal from a retirement account such as an IRA or 401(k). Across generations, the most common reason was a financial emergency.

Caro says, "It’s possible to catch up, but it almost always requires either a higher savings rate once you’re working again or a meaningful reset of lifestyle expectations." Even if your income eventually matches or exceeds your previous job, she notes, you still have to contend with "the gap: the months or years when you didn’t contribute to retirement accounts and missed out on growth."

Tom Geoghegan, CFP® and founder of Beacon Hill Private Wealth, agrees. To stay on track, he suggests people "roll over old employer plans if it improves investment access or lowers fees. And if you pick up contract or consulting work, remember that a solo 401(k) can offer extremely high contribution limits and help you close the gap faster."

These are the risks you should weigh when you're considering a voluntary break. Because timing also plays a role.

Timing matters — sometimes more than the decision itself

I can’t pretend my timing was perfect.

Research consistently shows that the impact of leaving an employer depends heavily on what’s happening in the job market. In strong labor markets, wage growth for job switchers (gray) often outpaces that of workers who stay put (red), as tracked by the Federal Reserve Bank of Atlanta. In weak markets, that flips: displaced workers take longer to find new roles and earn less when they do.

Age also plays a major role. Research from the Urban Institute has found that workers in their 50s experience longer unemployment spells and steeper earnings losses than younger workers. Expertise, it turns out, doesn’t always insulate you. In some cases, it makes you more expensive to replace.

I’m in my 40s, which gives me a bit more room. But the rapid rise of AI and automation means even workers with secure jobs may find their industries shifting faster than expected. That thought is both discouraging and oddly reassuring — change is coming for everyone, not just the people who step off the treadmill voluntarily.

Whether you quit or get laid off, it typically pays to hope for the best but prepare for the worst. As Caro points out, “The people who manage voluntary breaks well are the ones who model it years in advance and run worst-case numbers, not just the optimistic ones.”

The emotional and practical fallout

The financial math matters, but it’s only part of the story. Losing or leaving a job also affects health, habits, confidence and identity in ways that aren’t visible on a spreadsheet.

A wide body of research shows that job loss correlates with worse mental health outcomes and higher mortality risk. Without a work structure, people’s routines and social ties often fall away. Studies have documented increases in risky behaviors such as gambling and substance abuse following job displacement.

Caro told me the first emotional hurdle for many people isn’t financial at all. “Work becomes a proxy for stability, competence and purpose,” she said. “Losing it, especially without warning, feels like your foundation cracked overnight.”

The practical side can be overwhelming, too. The moment someone loses a job, their benefits clock starts ticking.

Jim Shagawat, CFP® and partner advisor at AdvicePeriod, described a client navigating this recently. Before anything else, he helped her assess cash flow and estimate how long her reserves could last while she planned her next move. “Before benefits ended, I advised her to complete any medical or dental visits and review health insurance options, including COBRA, a spouse’s plan and marketplace coverage,” he added.

In my case, I'm lucky that my wife is fully employed, so the plan is to join her benefits. Still, what has surprised me most about leaving a job is just how many balls you suddenly have to juggle. Caro calls this phase “financial triage,” in which the goal is to strip spending down to essentials, protect cash and avoid letting emergency measures, like using credit cards, turn into long-term habits.

Moving forward — the part you can control

The advisers I spoke with said the biggest determinant of long-term recovery isn’t just income or age, it’s mindset.

Geoghegan said something that stuck with me: “Behaviorally, momentum is just as important as math.” He says small wins, such as restarting contributions, consolidating accounts and clarifying next steps, can help restore confidence and build structure again.

For me, the choice to leave a steady job wasn’t made blindly. I have a plan, a path and a body of work I’m committed to building. Still, I understand exactly how large the bet is. It could blow up in my face. Or it could lead to something far more meaningful.

Retirement math rewards discipline, but life rewards courage. And in money as in life, rewards only follow risks if you take them.

The key, I remind myself, is to keep playing the game, even when the rules change.

There are two other powerful words that matter just as much as “I quit.” When you hear that the top regret of the dying is “I wish I’d had the courage to live a life true to myself, not the life others expected of me,” the goal becomes simple.

I want to be able to say, at the end of all this, “I tried.”

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Answer: They all launched highly successful businesses — McDonald’s, KFC, a major media company, The Home Depot and a career as a preeminent folk-art painter — after age 50.

Like these icons, a growing number of people are choosing to become entrepreneurs in their 50s, 60s and beyond.

Recently, nearly one-fourth of new businesses have been started by founders between the ages of 55 and 64, up from 15% two decades ago, according to the Kauffman Foundation, a nonprofit that fosters entrepreneurship.

Overall, the U.S. Census Bureau reports, more than half of small businesses are owned by people 55 and older, with other surveys suggesting the number may be even higher.

Your odds of doing well are pretty good

Starting a business after 50 can be a great way to add years to your career or earn extra income in retirement. And while the chances you’ll strike it rich by creating a top-selling fast-food franchise or a multibillion-dollar retail operation are slim, your odds of doing well are far greater than for younger founders.

Research shows that people launching a business at age 50 are twice as likely to succeed as their 30-year-old counterparts, and the probability of being solidly profitable rises further with age after that.

“The wisdom, experience and network built up over the course of a long career can really pay off for older entrepreneurs,” says Andrew Chamberlain, principal economist at Gusto, an online payroll and human-resources platform for small and midsize businesses.

Still, entrepreneurship is not without risks. That’s particularly true if you are giving up a steady income to launch your venture or pulling cash from a 401(k) for funding — at exactly the point in life that most people of a similar age are trying to pump up savings before retirement or preserve nest eggs they’ve already built.

“Launching a business can be a great move when you’re older, but it’s not an easy path,” says certified financial planner Jovan Johnson, co-owner of Piece of Wealth Planning, a financial planning firm in Atlanta that primarily serves small-business owners, private practitioners and independent contractors.

“It takes the right mindset, the right business and the right setup to succeed without sacrificing your current lifestyle or future retirement.”

Intrigued by the possibilities? Here’s what experts in entrepreneurship, along with people who have recently launched businesses, say it takes to achieve success.

Build on what you know

Just how much more successful are older entrepreneurs? Gusto’s research shows that Baby Boomers using its platform take home $60,000, on average, in their first year of operation.

That’s six times as much as the $10,000 that Gen Z founders are able to pay themselves in year one, and it’s considerably more than Millennial entrepreneurs’ first-year salaries as well.

Gusto’s Chamberlain attributes this greater profitability to older entrepreneurs’ deep experience in their industry, which allows them to better identify unfulfilled market needs.

Some 44% of founders in a recent Gusto survey said they started a business precisely because they saw a new opportunity, compared with 34% of the respondents overall.

“The longer you’re in a field, the more likely you are to see those unmet opportunities, which can be a strong basis for your business,” Chamberlain says.

If you launch a business when you’re older, you also have an edge because you’re likely to have a stronger business network, existing client relationships and initial credibility and authority built through a long body of work.

Says Chamberlain, “These are advantages that just come with age and a long career history.”

“Utilizing the same skill set you’ve used throughout your career allows you to fast-track the new business,” adds Johnson. “It’s a very different proposition than if you’ve been an engineer or lawyer and now want to buy a food truck or open a restaurant.”

Leveraging your knowledge

Building off his industry experience is what Rick Moore, 55, had in mind when he launched his consulting business, The RGM Group, in Colorado Springs last year.

The former deputy chief of staff for plans and programs for the Air Force, Moore retired in 2024 after 32 years of service so that his son, then a rising eighth grader, could spend his high school years in the same place with the same group of friends.

Now Moore, who had been responsible for the Air Force’s five-year budget and six- to 30-year plan, provides insights into the federal government’s budgeting process for companies that want to work with the Defense Department.

“I’ve been able to leverage the knowledge that I gained in the military to continue to serve the Air Force, helping small businesses get to a point where they can provide a much-needed service or product that helps airmen,” he says.

To Moore’s surprise and gratification, the consulting business has been a success from the start. He managed to build a client list quickly through referrals and cold calls to companies he thought would be a good fit.

The $156 billion in mandatory defense funding passed by Congress over the summer has also been good for business. “Luck and timing are a part of all of these things, and mine happened to be good,” he says.

The greatest challenge so far? “In the military, I always knew what the near future held, and what my next paycheck would be; it was relatively certain and very secure,” he says. “I’m working harder and more than I thought I might when I worried I wouldn’t have enough business, but not harder and more than I desire. It’s the best problem to have.”

Create a brain trust

One other critical component of Moore’s success: He has been able to call on a strong professional network for assistance with both logistics and conceptualization, from how to find and approach clients to the best way to set up the company as a legal entity.

“I got a ton of good, practical advice from people who had walked this path before me, and I have found that remarkably helpful,” he says.

Developing that circle of trusted advisers helps you fill the gaps in your knowledge.

“You’re not going to have expertise in everything, but given your age and the work you’ve done, you probably know people who, for example, have strong marketing or financial backgrounds if you don’t,” says Elizabeth Isele, founder of the Institute for Experienced Entrepreneurship and a leading speaker and researcher on the topic.

Your brain trust can also act as a sounding board for your ideas.

“You need to identify people who will be really honest with you about whether they think this business will fly or not,” Isele says. “You want people who will help validate the idea and make sure it’s marketable, as well as people who can help you actually operationalize the idea.”

You don't need your family's opinion

Who shouldn’t be in the brain trust? Your family, Isele says.

“Asking your family for their opinion on your business is a classic mistake, because they’re not about to give you an honest opinion,” she says. “They will either be blindly supportive or immediately pooh-pooh the idea because, perhaps unconsciously, they may have their own agenda.”

In addition to people you know personally, you can connect with advisers who will provide free technical expertise, answer questions about best practices and generally assist in getting the business off the ground through SCORE, a nonprofit partly funded by the Small Business Administration.

Its seasoned mentors, often retirees themselves, are experienced in everything from creating a business plan to marketing and customer service (find a mentor in your area at score.org/find-mentor).

The SBA’s regional Small Business Development Centers may also offer free or low-cost counseling in some areas (check sba.gov/local-assistance), as do some state- and local-government business development initiatives.

Some of these services, though, may be affected by recent federal funding cuts.

Do the (side) hustle

Sometimes you have little choice but to make a full-body leap into entrepreneurship. That may be the case if you are laid off from a job, still need to earn a living and have had trouble finding another staff position — something more likely to happen later in your career.

One-fourth of entrepreneurs age 55 and older in the Gusto survey started their businesses due to job loss, compared with just 10% of founders on the platform overall.

But if you have the option to stay on at your current job and start your venture as a sideline business, experts say that’s typically the better way to go.

You’ll keep money coming in while you’re getting the business off the ground, and you won’t have to dig into your savings to pay the bills until your business is profitable — if it becomes profitable.

It also gives you time to test the idea, see what works and what doesn’t, and get a sense of whether you can really make a success of it while you still have a financial safety net.

“If you start small and learn the ropes while you’re still on someone else’s dime, it takes a lot of the fear and stress out of launching a business,” says Ross Buhrdorf, CEO of ZenBusiness, an online platform that provides a suite of services to help entrepreneurs create, manage and maintain their businesses.

“Once it gets going and growing, you can progress into a full-time job. But don’t jump off the financial cliff first.”

The most important thing to learn during this sideline period, Buhrdorf says: “You need to make sure someone — actually, lots of someones — will pay you for what you are selling. It sounds so basic, but not knowing is the number one thing that will trip you up.”

Lean on technology for help

A variety of digital tools, from artificial intelligence to Zoom, can help you establish, manage and promote your business at no or low cost. But entrepreneurs in their 60s, 70s and beyond can sometimes be reluctant to use them.

“Embrace technology,” advises Marisa Giorgi, director of education for Older Adults Technology Services (OATS), a nonprofit affiliate of AARP that offers a series of free technology courses for older entrepreneurs through Senior Planet, its flagship program.

“Think about whether there might be a digital or tech solution for whatever business problem or challenge you have in front of you.”

At a minimum, says Giorgi, you need to be on LinkedIn, with a professional page for yourself as well as your new venture, and establish a separate e-mail account for business communication.

You’ll want your own website to promote the business, too. (You can create one yourself with a user-friendly service such as Google Sites, or you can hire a pro to do it for you.)

Online payment services such as Cash App, PayPal and Venmo can simplify getting compensated for your services.

Crowd-funding sites such as GoFundMe, Indiegogo and Kickstarter can help you raise capital for the business so you don’t drain your savings to run it until you become profitable.

A bonus to using a crowdfunding site is that you will get a solid early read on what others think about your business idea.

“If no one wants to risk investing a dollar, you know that either a market doesn’t exist for what you want to do or no one believes it does, so you need to work on your messaging,” says Isele.

“If someone comes back and says, ‘I’m a little hesitant to invest, but did you ever think about doing this … ?,’ that’s free intel. You would have to pay a marketing firm thousands of dollars to get those insights.”

AI can be especially helpful, says Giorgi, who suggests making a list of all the tasks involved in running your business — say, pricing, invoicing, marketing, writing e-mails and analyzing market data — and ask an AI tool such ChatGPT, Claude, Google Gemini or Microsoft Copilot (all offer a free version) which jobs it can help with.

Says Giorgi, “AI can act as your intern or collaborator, freeing you up to focus on the things only you as CEO of the company can do.”

Courses can help too

Courses from Senior Planet have helped Lorena Jiron, 70, become comfortable with AI tools, digital payments, cybersecurity and social media that now help her manage and promote the life-coaching business she launched last year.

A U.S.-educated former interior designer, Jiron had worked for years as a facilitator of emotional wellness programs for nonprofits in Central America but moved back to the U.S. with her husband in 2023 to be closer to their adult children.

“Before I took the classes, I had to rely on my daughters for tech help, and they’re very busy people,” she says. “The digital training gives me independence and autonomy.”

It has also given her a new client, because Jiron, a bilingual coach, is now conducting workshops in Spanish for Senior Planet, helping the organization expand its audience.

“People ask me why I don’t just relax and enjoy retirement. But I’m passionate about this work, and it keeps me going and happy,” says Jiron. “And while we don’t need the money I make to live on, it’s nice to have that extra level of financial comfort.”

Don’t bet the farm — or the 401(k)

Apart from the cost of getting her certification as a life coach, Jiron was able to launch her business with relatively little money. That’s common. Although the particulars vary with the type of business, studies show that the majority of entrepreneurs launch their ventures with a modest initial investment, typically $5,000 or less.

That wasn’t the case for Noelle Boyle, 58. After she was laid off from her job as a senior marketing manager at Dell, where she’d worked for 18 years, Boyle invested $1 million, mostly from her 401(k), to open a branch of The Lash Lounge, a salon franchise that specializes in lash extensions, lifts and related services.

She learned about the opportunity from a franchising consultant during her outplacement counseling. “It was something I could pour my passion into,” she says. “Helping people feel better about themselves gave me a raison d’être I didn’t have in the tech world.”

Since opening her first salon in 2017, Boyle has bought three more, funded mostly via business loans. The business is flourishing, she says, with market dominance in the Austin area. Boyle has paid off some of her loans but hasn’t yet earned back her initial investment.

Still, she’s comfortable with the risks she has taken and feels she’s leveraging the marketing, public relations and accounting skills she built over the course of her tech career.

She says that her husband has been able to support them while she has been building the business, and notes that, fortunately, he has ample savings and a comfortable pension for when they eventually retire.

“I’m playing the long game,” Boyle says. “I’m being aggressive with my growth strategy, but I only take risks I’ve carefully considered and am comfortable with.”

Considering expenses, revenue and profits

Mapping out, realistically, what the first one to three years of your venture will look like in terms of expenses, revenue and potential profits is vital to ensuring that you’ll be okay financially, says Johnson, the Atlanta CFP.

He encourages clients to think about the worst-case scenario — how many years of savings might you need to forgo, and how would that impact your retirement? How would you pay the bills?

“Getting input from a financial adviser or another third-party expert is helpful to catch any blind spots, because if you’ve never launched a business before, there are going to be some expenses and hiccups you’re just not aware of,” he says.

Johnson recommends, if at all possible, building up your emergency fund before you launch, as well as having separate accounts for those surprise personal and business expenses.

To reduce bookkeeping challenges and potential liability issues, he also recommends opening a separate regular bank account and credit card for the business.

As for using your retirement savings to help fund your venture and pay your living expenses in the early stages, Johnson, like most experts, is not a fan.

“It’s a big gamble, especially when you’re older,” he says. “I would never tell a client no, but it’s important to project the impact, carefully consider it, and understand that if you go this route, you’re probably going to retire later than you originally planned.”

Of course, if you love the work, that may not matter.

“I’m pursuing my passion and feel like I’m genuinely making people’s lives better,” says Boyle. “I’m exactly where I need and want to be.”

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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Companies cutting costs and shrinking workforces have been trends across tech and biotech lately, and layoffs are hitting other industries too.

Losing your job might feel like something you can't plan for or control. But a core tenet of financial planning is to expect the unexpected.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

There are proactive steps you can take, as well as immediate action items to put on your list to better protect yourself in the event of a layoff, and to keep your financial plan on track.

Here's what we've been advising our clients who are dealing with a job loss.

1. Make a counteroffer on your severance package

You likely understand the power of negotiating the terms of a job offer — from pay or bonuses to benefits packages — when looking for a new job. But you can also end up in a better financial position by negotiating any potential severance packages, as well.

Just like negotiating compensation when considering a new job, you can negotiate the terms of your severance package. Such packages can include lump sum payments, equity grants and payouts of banked paid time off.

Benefits apply here, too: You could ask for support in the form of career coaching, reimbursement for training programs or placements with recruiters and other job-search specialists.

And like a job offer, your company should give you time to consider the severance package they present to you before you need to respond.

Take advantage of the time provided (while being mindful of any deadlines). Use it to consider your leverage points, which could include potential legal claims but may also be centered around the value you created as an employee.

Do any additional research to back up your counteroffers, and review company policies to make sure you understand what, if anything, your employer may owe you beyond what they initially offered.

This is an opportunity to walk away with a better deal, so don't ignore it.

2. Triage your monthly cash flow with an emergency budget

The loss of regular income is usually the biggest immediate financial impact of a layoff. To address this, you need to evaluate your cash flow and determine what can be cut from your budget immediately, vs what has to get paid no matter what.

For those no-matter-what items, this is the purpose your emergency reserves serve: a cash cushion to get you through unexpected pitfalls.

Building an emergency budget is a useful tool to keep handy and deploy when you need it. To create it, start with your existing budget or record of monthly cash flow and strip out or dramatically reduce discretionary spending. That's it! Very simple, although it's not easy to go through and choose what to eliminate.

Keep in mind that the idea here is to see what costs you can eliminate immediately to help you get through a period of unemployment. No, this is not fun. It's also temporary, and doing so will help your cash reserves last longer.

Ideally, your emergency budget is something you'd construct before a layoff. If you're worried about losing your job, this exercise can help ease some anxiety because it shows there are things within your control you can do to better your financial situation, even as you deal with a loss of income.

You know you have a backup blueprint that can guide your spending decisions while you get through a period of unemployment.

But this is also something you can do on the fly, if needed. If you need help working through it, your emergency budget should probably include:

What you have to pay for, regardless of your employment status. Think fixed costs and bills with no flexibility or ability to change, like your mortgage and utility bills.

Scaled-down line items for things you need, but also have control over how much you spend. This might be things like groceries, household shopping or even gas.

These things are more needs than wants — but you can start shopping at your local chain grocery store vs Whole Foods or be more judicious with long-distance trips.

One or two things that are extremely important to you, but don't qualify as needs. Even if you lose your income, some things that are technically "wants" vs needs are still extremely important to maintain.

This will look different for different people, but some examples might include a gym membership so you can maintain your workout routine, a monthly appointment with a therapist or a (smaller) budget for select self-care spending.

Everything else should be cut out or drastically reduced in your emergency budget. Remember, this isn't your new normal. It's just your guide to navigate through a temporary tough time.

3. Reconsider one-time purchases (for now)

On a similar note, if you're worried about a layoff or just lost your job, you need to take a second look at any upcoming one-time purchases you previously considered.

Avoid big-ticket purchases or delay as much choice spending as possible until you secure a new paying position. Hold off on any financial decisions that would insert large fixed costs into your monthly budget, as well.

Again, it's not forever. But you want to focus on what you can control to get through a potentially tight period, and pausing spending is a great way to successfully navigate a period of no or low income.

4. Know your health insurance options and apply for unemployment

COBRA may cover your health insurance needs in the event of a layoff. You may not know this until you actually receive a severance agreement/package, but you could get coverage this way for a period of time — typically 18 months.

Depending on your state, you may also be able to purchase your own private coverage on an exchange.

We're based in Massachusetts and can leverage the commonwealth's exchange. If your state does not offer this, HealthCare.gov may be a good place to start for researching other options.

We also generally recommend our clients apply for unemployment benefits as well. Again, specific terms of a layoff may affect when and how much you qualify for benefits.

5. Identify other benefit gaps

Most employed workers get health insurance through their employer, and that's typically what people think of losing when experiencing a layoff.

But your benefits package might have included other policies and types of coverage as well, like life and disability insurance or access to certain professional services.

In the event of a layoff (or ahead of a potential one if you're concerned), ask your employer if your group life and disability policies are portable — meaning, you could maintain the policy you have now even if you were laid off.

You may be able to keep the coverage; you'd just need to pay the premiums yourself, where previously your employer covered that cost.

Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.

If your policies are not portable, you may want to speak with an independent insurance broker about private term life or long-term disability policies to cover any gaps.

This is a sound recommendation even if you feel confident in your current job security! Most employer-sponsored plans don't quite cover the full needs of higher-income earners.

6. Reach out to your financial planner

Providing a clear set of steps to take now to navigate through a challenging time is exactly what a real financial planner is made to do. Keep them in the loop and lean on their expertise.

A great planner will help make sure you understand the best steps to take, provide support and resources (including helping you sort through new job offers when those start coming in) and take care of the technical aspects of your planning so you can focus on what comes next in your career.

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• Five Financial Tips to Help You Plan for the Unexpected
• Facing a Layoff? Ask Your Employer These Questions Now
• I Got Laid Off at 59 with an $800,000 401(k). What Are My Options?
• Six Winning Moves to Land a Job After 50

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.

Answer: In early 2020, many companies implemented remote work policies in response to the pandemic. And a good number of employees have been enjoying a fully remote schedule ever since.

But companies are increasingly asking workers to return to the office. And many are mandating it. CBRE reports that 77% of companies today across the U.S., Canada and Latin America expect employees to report to the office three days a week or more.

If you're 57 and have been working remotely for the past five years, you may feel that you don’t have the energy to start commuting daily. But if your employer wants you back in the office full-time, you may also feel like you don’t have a choice.

It’s hard to start over at a new employer at age 57, since you may be approaching the tail end of your career with plans to coast until retirement. Plus, it may not be so easy to get hired at 57.

Almost two-thirds of workers ages 50 and over have seen or experienced age discrimination in the workplace, according to AARP. It is especially a problem for older women. And while it’s illegal to pass over a qualified job candidate on the basis of age, it’s also a hard thing to prove.

Also, there’s no saying that if you were to apply for a new job, you’d be able to find one that’s fully remote. So all told, you’re looking at a tough situation. But that doesn’t mean there aren’t solutions.

It pays to have an open mind

After five years of remote work, the idea of a daily commute may be jarring. But Suzanne Hawes, a seasoned human resources consultant, says it’s important to have an open mind. If you like your job and the commute is the one sticking point, there may be ways to make it work.

The most important thing, she says, is to give commuting a chance.

“Often, it takes a few weeks to get used to the old routine again,” says Hawes. “If you were able to balance work and life before, it may be possible to find that balance going forward. If the only negative thing about the job is having to be in the office full-time, you might try it for a few months before deciding to leave.”

Diana Bernal, CEO and Career Strategist at Diana Inc, says you may be able to make the most of a commute.

"Use it as a chance to listen to audio books or podcasts," she suggests. And if you don't have to drive, you could read or watch TV and use the commute as an opportunity to enjoy some downtime.

Bernal also points out that if you can afford to do so, there may be ways to make your commute more comfortable.

"When I got a new job downtown that increased my commute, I leased a comfy Lexus, a nice step up from my Honda Accord," she explains.

Or, you may realize that there are benefits to being in the office, such as family, friends, or activities nearby. All told, it may not be so bad once you get used to it.

There may be some wiggle room

If you’re being asked to return to full-time office life, one thing to consider, says Hawes, is that your employer may be more flexible than you’d think.

“One possibility,” she says, “is to comply with the order and come back full-time for a few months. Then, see if your leadership is open to one or two work-from-home days. People who show they are willing to comply with the return-to-office order may find that buys them some flexibility.”

Hawes also says that the more leverage you have at your job, the more your employer may be willing to negotiate.

“If you’re a high performer or in a role that’s hard to replace, your leaders may be more willing to offer you a hybrid arrangement,” she explains.

Consider a new job or go freelance — if it fits your financial plans

If your employer insists on five days a week in the office and it doesn’t work for you, you could always look for a different job. But Hawes warns that it may be tough going.

“Not only is remote work harder to come by now,” she explains, “but in some locations, all jobs are harder to come by. If you’re going to leave your job because of a return-to-office order, either find your next job before you leave this one, or make sure you have enough savings to support a potentially long job search.”

Hawes says that while taking a lower-paying job with more flexibility may be possible, you should work with a financial adviser to understand how prepared you are for retirement now.

“If your planner says you’re in good shape, a lower-paying job may make sense,” she says. “But be clear about what you’re giving up in return for fully remote work. Are you used to a high level of independence and decision-making? Are you prepared for a role with less authority or visibility than you have today?”

Hawes says you can also consider a shift into freelance work if you can’t find a suitable job that will let you work from home. But there are risks involved.

Freelance income can be inconsistent, and it may take time to build up a steady stream of it.

Before going the freelance route, Hawes says, “Talk to people who are doing it and find out what it takes to get work. Ask how they price their services and, if they are willing to share, what they earn in a typical month.”

You’ll also need to consider the benefits you may be giving up by going freelance, such as employer-subsidized healthcare and access to a workplace retirement plan, like a 401(k).

“Many employers contribute to employee plans, often by matching contributions,” Hawes says. “That’s free money you would be giving up.”

The good news is that, as an independent contractor, you can save for retirement through vehicles such as SEP IRAs, Solo 401(k)s, or SIMPLE IRAs. And in some cases, you can contribute more than you could to a 401(k).

But as Hawes warns, “All of those contributions will be coming from you.”

Don’t rush into a decision

You may be tempted to quit your job if you’re forced to resume a five-day commute you’re dreading. But before you do that, Hawes says, it’s important to have a game plan.

“My recommendation would be to go back and approach it as an experiment,” she says. “Give it at least three months and pay attention to how you feel and how the rest of your life is functioning.”

If, after three months, you’re truly unhappy, you can explore other options. But as Hawes says, “If you still want to quit after that, take the time either to find another job that better fits your needs or to save enough money to give yourself a cushion while you build a freelance or consulting practice.”

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Large employers expect health care costs for employee coverage to rise by a median 9% in 2026, according to the Business Group on Health. “This is the highest single-year forecast in more than a decade,” says Ellen Kelsay, BGH president and CEO.

Employers plan to pass along more of the increase to employees than they have in the past few years, and some are offering new kinds of plans with restricted provider networks as another way to manage their expenses.

The sticker shock will be even more intense for people who buy insurance on the ACA marketplace. When health insurance companies filed their proposed rates for 2026 with regulators over the summer, the median premium increase from 2025 was 18% — the largest rate change insurers have requested since 2018, according to an analysis by KFF, a health care research organization.

And that’s just part of the picture for marketplace plans. If you’ve qualified for a premium subsidy to reduce costs based on your income in recent years, that may change: The enhanced premium tax credits that enlarged the subsidies starting in 2021 are set to expire at the end of 2025, unless Congress makes a last-minute change.

If they are not extended, the subsidies will shrink for people earning less than 400% of the federal poverty level; for 2026 plans, 400% of the poverty level is $62,600 for singles and $84,600 for couples in most states. People earning more than that won’t receive a subsidy.

Despite these developments, you still have solid strategies at your disposal to make smart health care decisions and manage the costs during open enrollment. Here’s what to expect when assessing your plan options this fall.

New employer-plan options

The BGH study’s 9% projected increase in health care costs is driven primarily by the rising price of pharmaceuticals, the growing popularity of obesity treatments (especially GLP-1 medications, such as Ozempic), an increase in cancer diagnoses, and higher usage of mental health services, which many employers have expanded in the past few years.

The employers who responded to the survey expect to moderate the increase to a median of 7.6% by tweaking the design of their health plans, including some changes that affect employees’ options and costs. The plans may limit or reduce coverage for GLP-1 medications and require prior authorization for more procedures and services before they provide coverage.

Employers may also pass along a larger share of the cost increase to employees than they have over the past few years, through higher premiums, deductibles and co-payments. The median estimate of employee contributions to annual premiums is rising from $2,983 to $3,251 per employee in 2026 (including both single and family coverage), and the median yearly out-of-pocket cost for employees is increasing from $1,825 to $2,224, according to the BGH study.

But a growing number of employers are also looking for alternatives to increasing deductibles, recognizing that high deductibles can cause people to avoid seeking care, leading to more expensive medical issues in the future.

More than one-third of the plans surveyed by Mercer, a human resources and employee benefits consulting firm, expect to offer a medical plan with no deductible or a low deductible, and 12% expect to offer at least one plan with no premiums for employees.

Some employers hope to reduce costs by offering plans with incentives for employees to use certain providers that offer high-quality and cost-efficient services. So you may see plans with new types of provider networks on the menu.

For example, if your plan includes a “high-performance network,” you may have lower deductibles and co-payments when you use certain providers than you do when you visit the rest of the providers in your plan’s standard network. A high-performance network is “generally like a PPO, but it’s a more curated network,” says Tracy Watts, senior partner at Mercer.

With these plans, you may be able to use out-of-network providers, but with higher costs for you, as is typical with a PPO (preferred provider organization). Another version of these high-performance network plans, called EPO (exclusive provider organization) plans, restricts coverage to in-network providers only.

As another option, some employers are offering “variable co-pay plans” that have no deductible and provide a range of co-payments that vary by provider, which the employees see up front. “The idea is you’re getting somebody to do their homework before they call the doctor,” says Watts.

You may also be able to use centers of excellence, which are hospitals that may be outside your area but specialize in certain conditions. More than half the companies surveyed by BGH plan to include centers of excellence in their networks in 2026 for bariatric surgery, musculoskeletal conditions, fertility treatments, or cancer. Centers of excellence are more commonly included in large-employer plans than those from smaller employers.

Employers and their health plans have also been beefing up navigator programs. Health care navigators can help you learn about your care options if you’re diagnosed with a medical condition and find in-network providers in your area. Navigators may let you know whether your plan offers a center of excellence for your condition or whether you may be eligible to participate in a clinical trial, says Watts. They can provide information about other programs the employer offers, too, such as employee assistance programs, which provide a growing number of in-person and online counseling options and other benefits.

Strategies for workers

Because of the increasing costs and changes to employer health insurance, it’s worth making an extra effort to review all your choices during open enrollment this year. The following steps can help.

Make the most of each spouse’s benefits. If both you and your spouse have coverage at work, compare the options. “Don’t assume that if you work for a bigger company, your family should all go on your plan,” says Watts. It may make sense to stay on your own company’s plan, but have your children on your spouse’s plan. Or you could get medical coverage through your plan, but dental and vision coverage through your spouse’s employer.

Do the math. Add up premiums plus the costs for the care and prescription drugs you and your family need regularly under the plans offered by your employers. Also check coverage if you were to get a serious diagnosis, such as cancer or a condition that requires major surgery, so you’ll understand how your medical care may be covered under each plan, says Watts. If you choose a high-deductible health insurance policy paired with a health savings account and the employer contributes money to the HSA on your behalf, subtract that amount from the potential costs.

Contribute to an HSA if you do choose a high-deductible policy. Many employers seed HSAs for employees with eligible health plans or match their contributions. To qualify for an HSA in 2026, your policy must have a deductible of at least $1,700 for single coverage or $3,400 for family coverage. You’ll be able to contribute up to $4,400 in 2026 if you have self-only coverage or $8,750 for family coverage, plus an extra $1,000 if you’re 55 or older.

Learn about new network options, which may be a way to reduce your costs. If you don’t have a strong relationship with any doctors, or if your current doctors happen to be in the network, making use of a plan that offers a preferred network could help you save money on premiums without paying a high deductible, says Watts. Find out whether the plan will cover out-of-network providers with higher cost-sharing or if it will cover only in-network providers.

Check how the plans will cover your medications, especially if you need expensive maintenance drugs. Some plans are altering their formularies, which specify whether a drug is covered and what your co-pay would be, says Watts. Even if the plan includes your drug, you may need to meet prior-authorization requirements before the insurer will cover it for you. Don’t assume your drugs will continue to be covered the way they had been in the past.

Take advantage of extra benefits. For example, employers are making their wellness programs more attractive to many employees. Employers may give you a few hundred dollars each quarter for a gym membership, for example, rather than require you to complete a complicated health assessment. Employers may also offer more mental health benefits and other programs, both in-person and remotely, such as virtual physical therapy.

Choosing a marketplace plan

If you buy insurance on the Affordable Care Act marketplace — either at HealthCare.gov or your state’s marketplace — you may see a particularly large jump in costs. The increase in premiums might not be quite as high as 18% by the time rates are finalized.

“But this gives us a really good signal of what insurers are thinking of the current state of the individual market and how health costs will change,” says Matt McGough, policy analyst in KFF’s program on the Affordable Care Act.

Final rates are available on HealthCare.gov starting the week before open enrollment begins, on November 1. Open enrollment for 2026 plans ends on January 15. (The time frame for open enrollment will be shorter, starting with 2027 plans.) Some states have different time frames.

The increases are due in part to rising health care costs, but they’re also fueled by uncertainty about what will happen to the enhanced premium tax credits.

"Last year, we saw record insurer participation,” says McGough. "Consumers had more choice than ever when it came to selecting a plan on the marketplace. But partially due to the uncertainty, a lot of insurers are pulling out because it might not be as profitable anymore."

Some insurers are worried that if the enhanced subsidies expire, some healthier people will choose not to get a marketplace plan, which could leave the pool of insured individuals sicker and more expensive for insurers to cover.

"Insurers are going to try to protect themselves from what might be a sicker group of people,” says Sara Collins, senior scholar for health care coverage and access with the Commonwealth Fund, a health care research organization. If the insured people are less healthy overall, the costs go up for everyone — even those who are free of medical conditions.

Aetna, which had sold marketplace plans in 17 states, is leaving the ACA marketplace in 2026. Two large plans in Colorado announced in late August that they would exit the individual market. But regardless of whether the insurer that provides your current plan is sticking with the marketplace, it’s a good idea to shop around.

Your options will be based on where you live and whether you qualify for a premium subsidy. It’s important to look not only at the plan’s sticker price but also at your after-subsidy premiums and potential out-of-pocket costs.

"The amount you pay depends on your income and the plan you choose,” says Cheryl Fish-Parcham, director of private coverage at Families USA, a consumer health care advocacy organization.

“Don’t assume that what another person pays is what you’re going to pay," said Fish-Parcham. Look at the plan choices, and make sure you’ve updated your income figures when shopping for a marketplace plan.”

To help estimate your premiums and possible subsidies, you can use the calculator at kff.org/interactive/subsidy-calculator. (KFF plans to update the tool for 2026 plans before open enrollment starts.)

Plans on the exchange are separated into bronze, silver, gold and platinum categories. Bronze policies generally offer the highest deductibles and lowest premiums; platinum policies provide the most robust coverage in exchange for higher premiums; and silver and gold policies fall in the middle.

Platinum plans aren’t available in most states, so you’ll likely be choosing among the other options. If you have a silver or gold plan now, you may be able to reduce your premiums by switching to a bronze-level plan — but be prepared to pay more for the deductible and cost-sharing. Make sure you understand the types of care that aren’t subject to the deductible, such as a lot of preventive care.

One important benefit to buying an ACA marketplace policy rather than going without insurance: All marketplace plans cap your maximum out-of-pocket costs for the year. In 2026, the cap will be $10,600 for individual plans and $21,200 for family plans. That limit protects you against the risk of incurring massive bills should you end up needing expensive health care.

A helpful development from the One Big Beautiful Bill Act (OBBBA), which the president signed into law in July, is that all bronze-level plans will be eligible for health savings accounts starting in the 2026 plan year.

Make the most of an HSA to build up tax-free savings, which can help you pay out-of-pocket health care costs now or in the future. Contributing to an HSA also reduces your modified adjusted gross income, which could help you qualify for a premium subsidy.

If your income is less than 250% of the federal poverty level (which will be $39,125 for singles and $52,875 for couples for 2026 plans), you can also qualify for a special subsidy that reduces your deductible and co-payments if you buy a silver-level plan, which could be a better deal for you than a bronze plan.

Understand how the network works. Is it a PPO that lets you use both in-network doctors and out-of-network doctors, but with higher co-pays, or is it an HMO that covers only in-network doctors? Find out whether your providers will continue to be in-network. Also, check the plan’s formulary to see how it will cover your medications.

Fish-Parcham recommends getting assistance from a helper or navigator in your area; you can find one through HealthCare.gov or your state marketplace. The federal government has cut back on funding to support these helpers. In case they’re stretched thin, it’s best to get started early so you have time to work with them.

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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One of the most serious problems AI poses for job seekers is the potential elimination of entire classes of jobs, as well as a reduction in demand for many white-collar positions. The issue is so contentious that Congress introduced a bipartisan bill that would require companies to report jobs lost due to AI to the Department of Labor.

The other way AI can mess with your job search? AI is notorious for both reflecting and perpetuating human biases, such as racism, sexism or agism. If you're an older woman seeking a job, it's essential to be aware of the latest research findings and take steps to mitigate them.

AI absorbs stereotypes about working women

According to research published in Nature, advanced AI systems, known as large language models (LLMs), appear to have formulated some troubling ideas about what a working woman looks like and the types of jobs she can do.

Specifically, an analysis of large language models (LLMS) and millions of videos and images across the web revealed that when women are portrayed in different occupations and social roles, they're almost always depicted as being younger than men in the same positions.

While this is true across all jobs and scenarios, the researchers also found the biggest age gap in pictures depicting high-status, high-paying work. Moreover, this isn't an isolated problem of gender bias, as researchers were specifically looking for a "culture-wide trend."

The fact that LLMs had these misperceptions was especially troubling because the models didn't formulate the idea of which roles women fill by looking at pictures — the LLMs looked at words and still developed biases against older working women.

“Why would it be showing up in billions of words where there’s no visual presentation of people?” Douglas Guilbeault, the study's author and an assistant professor of organizational behavior at Stanford Graduate School of Business, said. “That is really suggesting it’s woven into the fabric of how we categorize and interpret people in the social world.”

In other words, our stereotypes of what men and women are good at, and which women belong in the workforce, are so baked in — despite decades of challenging those perceptions — that AI models now view women as less capable, and capable women as being young.

AI (and online images) are perpetuating these stereotypes

So, why does it matter that online images of success show men or young working women, or that LLMs think all women leaders are young and that women are less experienced than their male counterparts?

AI bias affects the real world

For one thing, many people spend all day online, forming their perceptions of the world based on the images they see. In fact, another recent study revealed that just 45 minutes of exposure to online pictures of people in various occupations altered people's perceptions of which gender is associated with specific jobs.

Furthermore, a growing number of companies are utilizing AI to review resumes, screen candidates, and even conduct interviews, which could make it harder for women to secure a seat at the table — and to retain the seats they've worked so hard to claim.

When AI writes resumes

In fact, when researchers asked ChatGPT to generate 34,500 unique resumes for 54 different jobs using traditionally male and female names, the resumes also depicted women as being less experienced and younger. Then, when ChatGPT was asked to evaluate resume quality, older men were given the highest ratings even in situations when fake male and female candidates had been given the exact same credentials from the start.

Women have long been the subject of age discrimination. Older women, who tend to live longer than men and often have less saved for retirement, may find themselves in a position where they need to work longer than their male counterparts.

If AI is screening them out, and they're facing hiring managers who have spent years online having their perceptions of professionals shaped by biased images, what chance do they have of fair treatment in the workforce?

How can you beat the AI algorithm?

AI isn't going anywhere, and the reality is that its role in screening job candidates will only grow. That's a problem for employers and society to address, but in the meantime, how can you beat an AI algorithm to get the job you want?

One of the simplest ways to combat AI bias is to limit the recruitment tool's ability to stereotype you. As Leslie Stevens-Huffman writes in Dice, "Consider removing your full address and specific dates from the education and work‑history sections of your résumé, online profiles, and digital portfolio. AI scans all of them, and together they shape the algorithm's picture of you."

You should also study how to navigate AI screens and develop a resume that will help you succeed. "There are tools to help you 'see' your resume the way an AI screener might, says NYU journalism professor Hilke Schellmann. "Sites like Jobscan and others allow you to input a job description and compare your resume to that description to see if your resume matches the role. But beware of looking too good on paper."

Older female job seekers often have to go the extra mile to get past AI-screening tools. For example, you can get a foot in the door by developing a robust network, joining industry associations or pursuing additional certifications.

Hopefully, over time, those developing AI models can find smarter ways to avoid bias. But, until that day comes, this may be just another hurdle that has to be overcome.

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Four out of five Americans in a survey by Discover this summer said they feel anxiety about their finances — an increase of nine percentage points since 2021 — and one-third characterized their stress as moderate to severe. The findings echo recent studies by Northwestern Mutual and Motley Fool, which found that more than half of Americans now worry about their finances at least three times a week.

Overall sentiment in the U.S. continues to deteriorate, with major gauges of consumer confidence falling in August. Topping the list of concerns: high inflation and everyday expenses, followed by job fears and worries about a recession.

“The change in trade policies and uncertainty over prices — most of our clients are aware of that, and it puts them on edge,” says certified financial planner Eric Walters, managing partner at Summit Hill Wealth Management in Greenwood Village, Colo.

The concerns are not unfounded. Several measures of inflation have been inching higher recently, and many retailers and consumer goods manufacturers are warning that prices will continue to rise due to tariffs. The latest analysis from the Budget Lab at Yale University suggests tariffs could add 1.8% to price increases this year, the equivalent of an average income loss of $2,400 per U.S. household. At the same time, employers are becoming reluctant to hire, creating another economic headwind.

What makes experts anxious, though, is that many people may make impulsive and possibly damaging money decisions to ease their worries, such as moving most of their retirement savings to cash or loading up on gold, cryptocurrency and other high-risk alternative assets.

“Everybody wants to get back into the driver’s seat of their lives financially, so they look at what they can control,” says CFP Bob Wolfe, founder of HealthyFP in Conshohocken, Pa.

These steps can help you tackle money worries in a healthy way.

Zero in on your biggest concern

Pin down what disquiets you the most, then work on a specific plan to address that worry. If high prices top your list, for instance, you might start by reviewing your budget to find ways to lower expenses, says Juan HernandezAriano, a CFP and director of WealthCreate in Houston. For example, you might be able to take advantage of available discounts, cancel little-used streaming services and subscriptions, or negotiate a lower interest rate on debt.

If you’re retired and inflation is fueling fears you could outlive your savings, consider shifting an additional three to six months’ worth of expenses from your investment portfolio to a lower-risk, easily accessible money market account or high-yield savings account that you can dip into as needed. That way, you’ll avoid selling stocks at a low if the market drops sharply again, HernandezAriano says. Temporarily lowering your annual portfolio withdrawals — say, from 4% to 3% — can help as well.

Naming your next three moves if your worst fears materialize is also a good exercise, HernandezAriano says. If you’re worried about losing your job, for example, you might assess your cash reserves to make sure you have enough on hand to meet your immediate bills, plan to file for unemployment benefits, and figure out how you’d maintain health insurance.

“The anxiety is reduced simply because you start flushing out that uncertainty,” HernandezAriano says.

Avoid habits that fuel your anxiety

Keeping up with the 24/7 news cycle and reading constant social media posts about the economy can trigger your brain to release “a burst of dopamine, which feels good and trains the brain to seek out more news,” says CFP and therapist Joy Slabaugh, founder of the Wealth Alignment Institute. But doing that ultimately feeds your anxiety, so “set up safeguards to turn that off,” she advises. Maybe limit your financial news viewing to an hour or less a day or stop following alarmist economic pundits on social media platforms.

Similarly, take a break from looking at your portfolio balances. “Those who check their investments frequently have a greater likelihood of seeing the inevitable short-term ups and downs,” says Walters, even though over the long term the market typically rises.

Clients who instead rely on quarterly updates have lower stress, Walters says — and research shows they average significantly higher returns on their investments as well.

Get perspective

Accept that some factors are out of your control, says Patrick Huey, a CFP and owner of Victory Independent Planning in Naples, Fla. He likes to offer his clients a reassuring historical perspective: Periodic bear markets and recessions are normal, and so is eventual recovery. “They feel like, okay, this isn’t the first time this has happened,” he says.

Instead of checking your portfolio, review your long-term financial plan, which should account for market ups and downs, recessions, and other setbacks, such as higher-than-average inflation. It also offers a concrete representation of your wealth and goals, how far you’ve come, and where you’re going. “It lowers the stress level,” Walters says. “You feel like there’s a map for your life.”

Allow yourself some grace

Avoid beating yourself up for feeling anxious, says Rick Kahler, a financial adviser and certified financial therapist in Rapid City, S.D. Instead, use the emotion to your benefit. “It’s what we call a trailhead to explore,” Kahler says. “It will lead us to some place that can be really productive.”

There’s also a good chance you’re not the only one dealing with financial jitters. Reaching out to trusted family and friends can help. As Slabaugh notes, “There can be comfort and solidarity in realizing you’re not the only one who feels this way.”

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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Answer: A lot of people experience sticker shock when they sit down to look at college costs today. For the 2025-2026 academic year, U.S. News & World Report puts the average cost of tuition and fees at a four-year, public in-state school at $11,371.

For a public out-of-state school, the average price tag is $25,415, and for private universities, it's $44,961.

Meanwhile, an estimated 42.5 million people today owe federal student loan debt, according to the Education Data Initiative, which also says the average public university student borrows $31,960 to get a bachelor’s degree.

Owing all that money can take a toll. A late 2023 Bankrate survey found that 59% of student loan borrowers felt forced to delay key financial milestones because of their student debt, including building emergency and retirement savings.

If you’re in a strong enough financial position to help pay for your grandchildren’s education, you might be eager to ease that burden — both for them and your grown children who might also be struggling to set aside money for college savings.

If so, a 592 plan is a good place to start. These plans offer the benefit of tax-free gains and withdrawals, provided the money is used to cover qualifying educational expenses.

You might wonder if it’s better to make a large lump-sum contribution to a 529 plan now or spread those funds out evenly over the years. You could go either way. It’s important to understand the pros and cons of both options.

The case for megafunding a 529 up front

If you can afford to fund a 529 plan with a lot of money up front, it could pay to do so, says Jonathan Sparling, director at CollegeWell.

As he explains, “Contributions to 529 plans are excluded from an individual's taxable estate, even though the account owner retains control of those funds.”

Moreover, Sparling says, “529 plans are eligible for the super-funding provision, which allows individuals to front-load five years of contributions in one tax year. A married couple could contribute as much as $190,000 per beneficiary, thereby reducing their taxable estate by that amount of money.”

There’s also the benefit of time to consider from an investing standpoint.

“Contributions made to 529 investment plans when a child is very young have more time to accumulate growth and weather market fluctuations. The same is true for 529 prepaid plans, like ones provided by certain states and the Private College 529 Plan,” he says.

With the Private College 529 Plan, Sparling explains, contributions lock in a percentage of tuition and fees at nearly 300 member colleges across the country.

“Making a lump-sum contribution earlier on locks in more years of tuition at a lower rate, protecting against future tuition inflation,” he says.

The case for funding a 529 plan through the years

If you can afford to front-load 529 plan contributions, not only does it give your money that much more time to grow, it’s also an expense you won’t have to think about year after year.

However, Brian Schmehil, CFP and managing director of Wealth Management at The Mather Group, points out that while you’re generally better off investing a lump sum of money, this approach increases your market-timing risk compared with dollar-cost averaging year after year.

Schmehil also points out that it’s important to consider the tax benefits your state might offer.

“Many states limit the amount you can deduct from your income each year,” says. “Spreading out your contributions can provide a guaranteed tax benefit to you and your family. In some cases, the value of this guaranteed tax benefit may outweigh the uncertainty of market returns.”

Schmehil also says that making contributions on a yearly basis gives you more flexibility if your circumstances, or those of your beneficiaries, change.

For example, you might end up in a situation in which your health care costs increase dramatically later in retirement. One of your grandchildren might decide that once they reach middle school, they’re interested in a specific trade and don’t wish to attend college.

Even though 529 plans give you some flexibility to switch beneficiaries, ultimately, you’ll get even more flexibility by having your money outside one of these accounts.

Any 529 plan contributions you make should go a long way

When it comes to funding a 529 plan, there’s really no right or wrong approach. Sparling also points out that not everyone can make a significant lump-sum contribution to a 529 plan, so for many people, spreading out contributions over time is the only feasible option.

No matter which option you choose, as Sparling says, “Regardless of when contributions are made, every dollar saved for college can help offset future costs and increase college options for their grandchildren.”

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Military life comes with plenty of challenges: frequent duty-station relocations, irregular work schedules and overseas deployments, to name a few that we’ve been through. But servicemembers also have access to some significant financial benefits. In recognition of Veterans Day this November, I’m sharing below a few that are impactful for my family.

1. Housing allowance

One helpful perk is a tax-free subsidy, known as the basic allowance for housing, that covers all or part of your monthly rent or mortgage payment if you don’t live in government-provided housing on a military base. The amount you receive depends on the location of your duty station, your rank and whether you have dependents. You can use the BAH calculator to look up the value of your subsidy based on those factors.

2. Free college

The Post-9/11 GI Bill covers the full cost of in-state tuition and fees at public colleges for up to 36 months (four academic years). Or, if you go to a private or foreign college, you get up to a certain amount per year; for the current academic year, the rate is $29,921. The Post-9/11 GI Bill also provides money for housing, books and supplies, and tutors, among other expenses. Those who served on active duty for at least 36 months or meet certain other requirements are eligible for the full GI Bill benefit.

One of the best features is that if you’ve served for at least six years and commit to four more, you can transfer your benefits to your spouse or children. Tom has done that, splitting his benefits so that our two young sons will someday be able to use them for their educational expenses.

3. Retirement security

Military members can use the Thrift Savings Plan, a tax-advantaged retirement plan that’s similar to a 401(k). The TSP has low fees, with the expense ratio on its funds recently ranging from 0.036% to 0.051%. Under the military’s blended retirement system (BRS), which went into effect in 2018, servicemembers get an automatic TSP contribution from the government equaling 1% of their basic pay, plus a matching contribution of up to an additional 4% of pay after you’ve served for two years.

Pensions have become rare in the private sector. But military members who complete at least 20 years of active-duty service are eligible for a lifetime pension, and the payments start when they exit the military. If you retire at the 20-year mark, the government calculates the average of your highest 36 months of basic pay, and under the BRS, you receive a pension equal to 40% of that amount. For each year you serve beyond 20, you get an additional 2%. (Servicemembers who joined before 2018 and did not opt in to the BRS are eligible for a 50% pension when they reach 20 years of service, with 2.5% added on for each year past 20 — but they don’t get government contributions to the TSP.)

4. Low-cost life insurance

Servicemembers’ Group Life Insurance provides coverage at a low rate regardless of the servicemember’s age or health. To get the maximum $500,000 in coverage, servicemembers pay $26 a month in premiums. Spouses can also get coverage of up to $100,000 through Family SGLI; rates vary by age. A spouse between ages 35 and 39 can get $100,000 in coverage for $4.70 a month.

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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This rule allows the Social Security Administration (SSA) to temporarily withhold a portion of your benefits if your earnings exceed a set annual limit. This surprise deduction often catches retirees off guard, significantly straining their budget and savings plans.

Who does the earnings test affect?

The earnings test applies to beneficiaries who are working and collecting Social Security retirement or survivor benefits and have not yet reached their Full Retirement Age (FRA). Once you reach your FRA, the test no longer applies, and you can earn any amount of money without having your Social Security benefits reduced.

If you are under your FRA: Your benefits are subject to the test.

In the year you reach FRA: The earnings limit disappears. You can work and earn any amount of income without affecting your Social Security benefits.

The SSA uses two different earnings limits for those working and collecting benefits, depending on how close you are to your FRA. The limits typically increase each year and are announced by the SSA in conjunction with the COLA and wage tax cap in mid-October.

The two earnings limits for 2025 and 2026

The specific dollar limits and the withholding rate depend on how close you are to your FRA.

An example of how the withholding works

Assume your Full Retirement Age is 67, and you are 64 in 2025 (under FRA all year).

Annual limit in 2025: $23,400

Your earnings: $30,000

Excess earnings: $30,000 (earnings)−$23,400 (annual limit) =$6,600

Benefits withheld (at the $1 for $2 rate): $6,600/2=$3,300

The SSA would temporarily withhold a total of $3,300 from your scheduled benefits for the year. This is typically done by withholding entire monthly checks until the total reduction is met.

Remember, not only will the reduction go away when you reach FRA, but you will also recoup any benefits lost to the reduction when you reach your FRA. More about that below.

The crucial recalculation: withheld money is not lost

The most misunderstood aspect of the Earnings Test is whether the withheld money is lost forever. The good news is that it is only temporarily withheld. Once you reach your FRA, the SSA performs a recalculation, increasing your future monthly benefit to credit you for all the months of benefits that were previously withheld. Essentially, the Earnings Test trades a temporary benefit reduction now for a permanent increase in your monthly benefit later.

The net result is that you receive the total value of your retirement benefits over your remaining lifespan. While it may not be preferable to have a portion of your Social Security benefits withheld until after you reach your FRA, this happens in the context of you being currently employed. As they say, forewarned is forearmed — you can plan for and around that reduced benefit until you hit your FRA.

What counts as "earnings"?

The Earnings Test is based solely on earned income.

The special first-year rule

The SSA has a special earnings rule for the first year you claim benefits. This helps those who retire mid-year after having already earned well over the annual limit. Under this rule, you can get a full Social Security check for any whole month you’re retired, regardless of your yearly earnings.

In your first year of claiming, the SSA can apply a monthly test. If you do not earn more than a specific monthly limit, $1,950 in 2025, for those under FRA all year, the SSA considers you "retired" for that month and will pay you a full benefit check, regardless of your total annual earnings from the months before you filed. This limit will increase by $90 to $2,040 in 2026.

If you reach FRA in 2025, you are considered retired in any month in which your earnings are $5,180 or less and you did not perform "substantial services in self-employment." In 2026, that number goes up to $5,430.

What the SSA considers "substantial services in self-employment": devoting more than 45 hours a month to the business, or between 15 and 45 hours to a business in a highly skilled occupation, or managing a sizable business. However, if you work less than 15 hours a month, you’re considered retired.

Working may defer some of your benefits, but will not reduce your benefits

If you are worried about losing some of your benefits because of the earnings test if you work after claiming Social Security, I hope you are relieved to know it's just a matter of time before you collect those 'lost' benefits. When you hit your FRA, your monthly benefit will be recalculated and raised to reflect all of the money temporarily withheld under the earnings test.

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Ten years ago, if someone mentioned "golden handcuffs," they would almost certainly be referring to some version of a deferred compensation arrangement for executives, a setup designed by companies to incentivize valuable employees to stay committed to their corporate role or risk forfeiting serious benefits.

The planning for those situations would be fairly standard: derisk, diversify and be tax-efficient in doing so.

But times change, and so do vocabularies.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

More recently, golden handcuffs is a term used to describe not only deferred compensation but also a wide variety of factors and even personal decisions that keep people tied to their jobs.

These factors shift the retirement, tax and investment planning tactics needed to develop a sound financial plan to escape the new golden handcuffs and a key (often missing) planning tool to help professionals move toward freedom.

What are the new golden handcuffs?

Over time, we've identified four key examples of golden handcuffs affecting the current generation:

1. Flexible compensation packages. Equity comp vesting schedules and deferred compensation arrangements are familiar versions of golden handcuffs for executives.

The increasing use of equity compensation as part of total compensation packages, across the rungs of the corporate ladder, has also given rise to flex comp packages, which put more control in the hands of employees.

These setups let employees choose what percentage of their total pay they'd like to receive in cash vs company equity — some taking it even further, letting the employee choose between restricted stock units (RSUs) and stock options.

While billed as an employee benefit, flex comp puts the onus on the employee to understand the options and thoughtfully decide what actually suits their plan best.

It's not uncommon for us to hear from prospective clients right as they near "the buzzer" and feel lost making their flex-comp decisions. These elections take thoughtful planning in the context of your family's goals.

Comparing job offers is already very complex when equity is included, as employees try to prognosticate on future company equity values.

When the additional variable of "the power of choice" is added through flexible compensation, these new golden handcuffs begin to tighten, keeping workers in their current roles.

2. High cost-of-living job centers. Possibly the most often-cited source of golden handcuffs on popular forums like Reddit is the high (and rising) cost of living.

For professionals who have built successful careers in tech centers that tend to correlate to higher cost-of-living areas, it is a natural outcome of their career trajectory that they become tethered to jobs to maintain their lifestyle in that location.

Without purposefully developing a financial runway or a transition plan that includes a geographic move, there will be few paths toward increasing freedom even with a high income level.

For a time, during the pandemic, remote work seemed to offer the ideal path out through "geo-arbitrage," maintaining the income related to a high cost-of-living industry center but living in a low cost-of-living area.

More recently, though, we've heard from several clients that return-to-work mandates have threatened job loss for those who aren't willing (or able) to comply.

3. Single-income pressures. Similar to the above but spanning across geographies are the golden handcuffs that arise when a couple wants to shift from a dual- to a single-income household.

Regardless of the cost of living of your locale, couples who have let their personal expenses inflate may find themselves tied to being a dual-income household at a time when they wish they could drop to one.

In our conversations, this happens most often after having children or taking on caregiving responsibilities for aging parents leads to desiring a reduction in work hours for one partner.

Failing to control so-called "lifestyle creep" ahead of time means being cuffed to two incomes, unless significant lifestyle changes happen first (and for long enough) to develop a financial runway.

4. Career identity. The last version of the new golden handcuffs is an individual's tie to their own corporate career identity. This isn't a new experience among retirees, who often face their own version of an identity crisis as they move on from a lifelong career to a brand-new phase of life.

This phenomenon has found new life among younger professionals though, as performance of company stock has given many the ability to exchange money for freedom in theory while the link to corporate identity keeps them cuffed to their job in reality.

The financial ability to make a job change does not equate to the desire to make a job change, but the desire for change also doesn't equate to the mental preparedness to act.

The middle ground where the desire exists but your mind has not caught up to reality can feel messy and leave you feeling more stuck than you are on paper.

The missing tool: Cash-flow planning

Managing these new golden handcuffs can be complex, requiring a look at every area of your financial plan — from budget, to concentrated stock exposure, to the tax bills that come with high-income employment and equity sales.

There's one tool that is conspicuously absent in almost all plans that helps to shine a light on planning opportunities for people wearing the new golden handcuffs and it's surprisingly simple.

For people feeling stuck in their role, the most powerful planning tool is a 12- to 24-month cash-flow projection. In our firm we refer to this as "The Action Plan."

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After developing a sound long-term financial plan that shows you're heading in the right direction in regard to equity sales, distribution planning and tax planning, we zoom in to map out the actual moves happening over the next year.

It's a simple four-step process with an outsized impact:

1. Review and insert your current cash balance, the liquid funds you have to work with.

2. Then map out income from all sources and when they'll hit your bank account, whether it's employment income, stock sales, self-employment or rental income.

3. Include your expenses by month, going as detailed as you'd like, making sure to include regular living expenses as well as one-time expenses that may come out through the year. Don't forget to make sure that savings goals are included as "coming out" of your cash flow.

4. Lastly, review and include your expected tax payments above your company withholding from all sources. If you aren't up for creating your own tax projection, it's a great time to enlist the help of a professional to dial in that number.

A foundation for success

The end result of this process should be a balance sheet that shows the moves of money into and out of your family's economy while tracking the net income and expenses and future cash balance at the end of every month.

These variables give you the foundation to make successful corporate exit plans without feeling strapped for cash along the way.

Projecting this out lets you address flex-comp decisions, be alerted to cost-of-living issues, see the impact of a reduction in income and become familiar with your post-exit situation ahead of time.

There's no doubt that the bulk of both professional and DIY financial planning usually focuses on portfolio insights and investment management.

Failure to round out that picture with thoughtful distribution and tax planning means wealth is likely to be lost in making decisions around a corporate exit.

The bottom line: Failure to complement your financial plan with a cash-flow plan may leave you unable to escape the new golden handcuffs.

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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.

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 needing to stretch savings for a greater number of 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 aren’t sure if you should stick it out or call it quits early, here are some surprising statistics that could help you decide.

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 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 age of retirement 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.

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.

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.

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 stress from work negatively impacted their mental health.

Stress is bad for anyone, but among older workers, it can speed the aging process, increase the risk of chronic illnesses, ruin sleep and weaken the immune system.

It can lead to sick days, visits to the doctor, and out-of-pocket expenses. You won’t have any of that in retirement.

We spend 90,000 hours working

Work/life balance is an admirable goal, but when it comes to reality, it's hard for Americans to achieve. It's been said that we spend one-third of our lives working, or 90,000 hours.

That’s not 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.

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 a great deal.

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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As of 2023, raising a child from birth to the age of 18 could cost an average of $331,933, according to Northwestern Mutual.

Between child care, housing costs and saving for college tuition, it's easy to feel like you're constantly playing catch-up. As a financial planner and a parent, I know firsthand how overwhelming it can be to juggle it all.

The good news is you don't need to make millions or have a crystal ball to create stability. A few smart financial habits can help make a world of difference. This article contains five important financial tips that every young family should know.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

1. Build a strong emergency fund

Life with kids is full of surprises — some sweet, others not so much. That late-night trip to urgent care, the school laptop that suddenly breaks or the daycare that raises fees without warning … these are the moments when an emergency fund can help keep you afloat.

Aim to save three to six months of essential expenses in a separate emergency account. Think of it as your family's financial airbag. You hope you never need it, but you'll be grateful it's there.

A high-yield savings account is ideal because it's accessible when life happens, yet tucked away from everyday spending needs.

2. Create (and stick to) a family budget

Budgets are just a map of where your money is going and whether it's taking you in the right direction. Begin by tracking your income and expenses, then categorize them into essentials (such as housing, food, child care and utilities) and non-essentials (like streaming subscriptions, eating out and luxury items).

When you see where your money is going, it's easier to cut back in some areas and redirect those dollars to bigger goals. A budget isn't about deprivation. It's about aligning spending with what truly matters to you and your family.

Apps like YNAB, Quicken Simplifi or Monarch make budgeting more user-friendly and less spreadsheet-intensive, although I'm a spreadsheet enthusiast myself.

3. Get the right insurance in place

Insurance may not be exciting, but it can be your family's safety net. Without it, a single event could possibly derail years of progress. At a minimum, young families should prioritize:

• Health insurance to shield against medical costs
• Life insurance to provide for loved ones if something happens to you or your partner
• Homeowners or renters' insurance to protect your home and belongings
• Auto insurance to protect against costly accidents or liability on the road
• Umbrella insurance to cover liabilities above and beyond what your home and auto insurance don't cover

Depending on your situation, there are different kinds of life insurance you can choose from. For young families on a budget, term life insurance is generally a more suitable option over whole life insurance. It's simpler, cheaper and gives you the coverage you need without locking you into an expensive product.

4. Start saving for education early

College may feel light-years away when you're still paying for diapers, but time is your biggest ally. A 529 college savings plan allows your money to grow tax-free when used for qualified education expenses.

Even small monthly contributions can compound into something meaningful by the time your child heads off to campus.

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I encourage grandparents and relatives to make gifts directly to a child's 529 plan during birthdays or holidays. The gift of education lasts longer than a toy your kids will eventually grow out of.

Thanks to the SECURE 2.0 Act, if your 529 account has been open for at least 15 years, up to $35,000 can be rolled over into a Roth IRA. Just one more reason to start early.

5. Invest in your retirement

When you're juggling child care and household expenses, it's tempting to postpone retirement savings. But here's the hard truth: You can borrow for college, but you can't borrow for retirement.

If your employer offers a 401(k), contribute at least enough to capture the full company match, as this essentially amounts to free money. From there, aim to save 15% to 20% of your gross income toward retirement.

If a 401(k) isn't available, look into an IRA or Roth IRA for tax-advantaged growth. Your future self and adult future children will thank you.

Wrapping it all together

There's no perfect playbook for family finances, but these five strategies create a strong foundation. Start with the basics: An emergency cushion, a thoughtful budget, the right protections, and consistent saving for both education and retirement.

And don't forget the bigger picture. Financial planning isn't only about building security. It's also about giving your family the freedom to enjoy the moments that matter most.

The kids are little only once, so while you're building good money habits, make sure you leave room for fun along the way.

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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.

Available exclusively for the benefit of children under age 18, this account was originally supposed to be a super-tax-advantaged way for young people to save for college, a first home or to start a business.

The final watered-down product, however, more closely resembles a traditional IRA — only without the benefits of tax-deductible contributions.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

As these accounts become available starting in 2026, many clients with young children (and expectant parents) will be asking advisers questions about them:

• How are they funded?
• What do they invest in?
• Are withdrawals taxed?
• How do they stack up to other savings options?

In most cases, other vehicles offer superior tax benefits, higher contribution limits and greater portfolio customization.

Advisers shouldn't be afraid to make these comparisons. But they need to be very careful if the alternatives they recommend to a Trump Account would earn them fees or other compensation. Doing so in a haphazard way could put them in the SEC's fiduciary crosshairs.

Trump accounts: Basic facts

For children born in 2025, 2026, 2027 and 2028, the U.S. government will open a Trump Account for them with a $1,000 contribution.

Starting in 2026, any parent will also be able to establish an account for a child who is under age 18 anytime before the end of 2028.

Once established, parents and other individuals will be able to make after-tax contributions of up to an aggregated total of $5,000 per year.

On top of this limit, employers and qualified charitable institutions will be able to contribute $2,500 to a child's account. These contributions will not count as taxable income.

It's not clear at this point whether this is a lifetime or annual contribution limit.

All contributions will be invested in a single low-cost, broad stock market index fund or ETF.

Earnings will grow tax-deferred until the child can start withdrawing them in the year they turn 18.

Then what?

At this point, it appears that a Trump Account essentially becomes, for all intents and purposes, a traditional IRA.

Like traditional IRAs, withdrawals from Trump Accounts will be taxed as ordinary income. And, like IRAs, the child may be hit with a 10% early withdrawal penalty unless withdrawals are used to pay for qualified expenses, such as:

• Higher education costs
• The purchase of a first home
• Expenses related to recovery from a federally declared disaster

Like an IRA, early withdrawal penalties will be waived once the account owner turns 59½. And, at the moment, it appears that annual required minimum distributions (RMDs) will be required if the account still has assets when the child turns 75.

Since contributions are made after-tax, it's not clear whether account owners will be able to withdraw contributed principal (not earnings) without tax consequences, especially if these contributions were made by someone other than the owner themselves.

What is it good for?

On the surface, the Trump Account looks like an easy way for parents to put away money for their children at an early age to give them a head start on saving for college or retirement.

But when you start comparing the Trump Account to other savings vehicles, its limitations stand out.

There are better college savings options

529 college savings plans allow parents, grandparents and others to make after-tax contributions up to a total aggregated lifetime contribution limit per account that varies by state (on average, it's about $402,000). In 30 states, a portion of 529 plan contributions is state-tax-deductible.

Contributions can be diversified across a mix of stock and bond funds, and all withdrawals are tax-free if they're used to pay for qualified educational expenses.

And these expenses aren't limited to college tuition.

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The OBBB now allows tax-free 529 plan withdrawals to pay for K-12 private school tuition, homeschooling expenses, tutoring costs, standardized test fees, educational therapies and post-secondary credentialing programs.

And if there's money left over in a 529 Plan, up to $35,000 in total can be rolled over into a tax-free Roth IRA established by the beneficiary.

Minor Roth IRAs are better retirement savings vehicles

Speaking of Roth IRAs, when a child starts earning their own income, their parents can establish a minor Roth IRA, also known as a custodial Roth IRA, that will allow them to contribute up to the amount the child earns or $7,000, whichever is lower.

The child takes ownership of the account when they turn 18, and any distributions they take after age 59½ will be totally tax-free. And, unlike traditional IRAs or Trump Accounts, RMDs are not mandatory for Roth IRA owners.

Even UGMAs/UTMAs may offer better tax benefits

Uniform Gifts/Transfers to Minors Accounts allow parents to contribute as much as they want to after taxes to establish these custodial trust accounts for their children.

Depending on the custodian, assets can be diversified across stocks, bonds, mutual funds and ETFs.

And while a portion of ordinary income and realized capital gains generated by earnings are taxable, investors (or advisers) can use tax-loss harvesting and strategic cost-basis step-up strategies to reduce investment taxes.

The risks of recommending Trump Account alternatives

Other than serving as a tax-deferred savings vehicle that can be funded as soon as a child is born, Trump Accounts offer few advantages over other kinds of savings accounts.

Investment advisers who agree with this opinion should feel free to express it to clients who ask about Trump Accounts, or express their opinions in public.

But if they recommend any of the alternatives mentioned above, they need to be very careful that their advice doesn't raise fiduciary red flags.

This is most likely to happen if, after hearing these recommendations, a client offers to pay the adviser to manage the investments in one or more of these Trump Account alternatives. Or if the adviser recommends their own managed solution.

In either scenario, the adviser's actions could be perceived as conflicted, since they might materially benefit from this advice.

And since an adviser's fee for managing these alternative accounts will probably be significantly higher than those charged by a Trump Account (whose annual fees cannot exceed 0.1% of the account balance), they may face a fiduciary quagmire in trying to explain how their recommendations are truly in their clients' best interests.

It's unclear whether the SEC will eventually provide guidance to help investment advisers navigate this fiduciary minefield.

So, until there's clarity, advisers may want to ask their firm's compliance officer to proactively develop their firm's rules of the road for guiding and documenting these kinds of comparative discussions.

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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.

The new and improved form, which includes changes courtesy of the Big Beautiful Bill passed by Congress this summer, will become widely available for the 2026–27 college year on October 1, its traditional release date.

“The government has repaired all the problems from last year’s FAFSA fiasco,” says Mark Kantrowitz, an expert on student financial aid.

That’s good news for families hoping to score merit- or need-based aid for a college-bound student.

You’ll want to move quickly, though, because aid is often awarded on a first-come, first-served basis. Students who file the FAFSA within the first three months of its release get twice as many grants on average as students who file later, Kantrowitz says.

Changes to the FAFSA form

New to the form this year: an easier way for parents to enter financial information via a simple e-mail invitation from the student, rather than a requirement for the parent to establish a unique ID first.

If you create an account using your Social Security number, you will also now get immediate verification, compared with having to wait one to three days previously.

Plus, as a result of the One Big Beautiful Bill Act, you can once again exclude the net worth of a family-owned farm or small business and, for the first time, a family fishing business as well.

Other recent changes include a simplified form with fewer than 40 questions (down from more than 100) and an increase in the number of colleges to which students can send the application (now 20, up from 10).

Distributions from a grandparent-owned 529 plan also no longer affect a student’s aid eligibility, so families might consider rolling a parent-owned 529 plan over to a new 529 plan in the name of the student’s grandparent to boost aid eligibility.

FAFSA and reporting parental income

Another helpful strategy: Because the FAFSA also no longer considers contributions to a 401(k) or 403(b) account, “You can reduce the income you report on the FAFSA by maximizing pretax contributions to your retirement plan,” says Kantrowitz.

This strategy works best, he adds, if you start increasing your retirement contributions two years in advance of filing the FAFSA.

That’s because, while the FAFSA asks for the value of your bank accounts, 529 plans, investments and other assets as of the day you submit the form, it pulls income information from the tax return you filed two years before the academic year for which you’re seeking financial aid.

That means this October’s application, for the school year starting in 2026, will use information from your 2024 return.

What if your income drops after you’ve submitted your aid application? Says Kantrowitz, “You should always appeal for more financial aid if your financial circumstances change.”

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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We recently dropped off our youngest child to start his first year of college. It's been a long journey not just for him and his two older sisters who already earned their bachelor's degrees, but for us as parents.

Our journey to help pay for all our children's college education began soon after they were born, when we opened 529 savings accounts for each of them, set up automatic monthly contributions and automatically raised the amount we contributed each year.

Our 529 accounts have been a key reason we've been able to pay for their college.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

And yet, I learned that most parents are not taking advantage of the benefits of a 529 account for education savings.

In a recent Vanguard survey, 69% of parents reported using a traditional bank savings account for their children's education-related expenses, despite these accounts often offering interest rates trailing the pace of inflation before factoring in taxes.

With September being College Savings Month, I wanted to share some tips for saving for a loved one's education.

Put your oxygen mask on first

It's hard to save for any long-term goal, including your child's education, when an unexpected expense can wreak havoc on your finances. That's why it's important to establish an emergency savings fund for those unexpected expenses before you start saving for other goals.

While you're at it, check to make sure you are putting these funds in a savings vehicle where you are getting the returns you deserve. The average bank's savings account yield is only 0.40%, well below the latest annualized inflation rate of 2.92%.

Consider looking at cash management accounts, with stronger interest rates, such as Vanguard's Cash Plus Account, which can yield nine times more than a traditional bank savings account.

By saving in a high-yielding savings vehicle, you can demonstrate to your children the importance of where you save and the benefits of long-term compound interest while building a savings buffer for unexpected expenses so they do not interfere with your long-term savings goals.

The benefits of 529 plans for education-related expenses

The survey also revealed that only 10% of parents leverage a 529 savings plan for education-related expenses. I'd like to encourage more parents to take advantage of the benefits of 529 plans, if they are able, by sharing how we personally benefited from their investment, tax and flexibility benefits.

From an investment perspective, each state-sponsored 529 plan offers a curated menu of vetted investment options, and most include age-based or Target Enrollment Portfolios that gradually and automatically become more conservative as you approach the date of your child's enrollment year.

It's important to note that a target-date investment is not guaranteed at any time, including on or after the target date.

Many plans offer the ability to set up automatic, recurring contributions and auto-increase your contribution amount on a periodic basis. We took advantage of these features in our children's 529 plans.

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From a tax perspective, the savings grow tax-free and can be withdrawn tax-free as long as you use the funds for qualified education expenses. And some states even provide a state income tax deduction for the contributions you make.

While you can choose any state's plan, I'd recommend checking if your state-sponsored plan offers benefits other states might not and know what type of expenses are qualified, so you don't mistakenly incur a tax penalty.

From a flexibility perspective, 529 plans cover more expenses than you may think. Your investment can be used to pay for tuition, room and board, books and other qualified expenses at any accredited school in the U.S. or abroad.

My oldest daughter attended school in the UK, and her 529 account paid for tuition and room and board, while my son's 529 account paid for a portion of his secondary school education before being used for college.

If college isn't in your loved one's future, you can use your 529 savings account for vocational training in skilled trades, professional licensing, credential programs and continuing education.

You can also change the account beneficiary anytime as long as they're a qualified family member, such as a sibling, stepchild, cousin or parent.

And if you still have leftover money, you can roll up to $35,000 into a Roth IRA, provided certain conditions are met.

Of course, this information is not personalized investment or tax advice — please consult a qualified adviser to understand how 529 plans may impact your individual situation.

It begins with the first step

Every journey — no matter how long — begins with the first step. We are glad we took that first step more than 20 years ago by establishing 529 savings plans and an overarching education savings strategy.

While our nest may be empty, we are grateful to be able to give our birds a better chance to spread their wings and soar.

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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.

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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The One Big Beautiful Bill (OBBB), which became law in July, represents one of the most significant shifts in student lending in recent memory.

The sweeping budget reconciliation law reshapes how families borrow and repay for higher education. The new rules take effect on July 1, 2026, though some programs will phase out gradually.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

While the updates are significant, there's no reason to panic. With the right information and a clear plan, borrowers can make smart choices that minimize costs and protect their financial well-being.

How federal student loan rules are about to change

The OBBB brings the most substantial changes to federal student lending in more than a decade. There are material changes across undergraduate borrowing, graduate borrowing and repayment options.

For undergraduates, federal Direct Subsidized and Unsubsidized Loans, formerly known as Stafford Loans, remain unchanged.

However, Parent PLUS Loans now come with new limits for the first time: a cap of $20,000 per year and $65,000 in total per student.

Historically, Parent PLUS loans have represented roughly one-third of total federal undergraduate borrowing annually, so these new limits represent a significant shift.

While the caps are relatively generous, the average Parent PLUS loan size was about $21,000 in 2024, meaning families who borrow for all four years of a bachelor's degree, particularly those with multiple children or higher-cost programs, could hit the ceiling and might need to explore additional funding options.

Graduate students face the most notable changes, as the Grad PLUS Loan program will be phased out starting July 1, 2026.

Students who have already taken out a Grad PLUS loan for a specific course of study before that date will be exempt and can continue borrowing under current rules to complete their degree or for up to three years (whichever comes first).

This will impact a decent number of borrowers, as Grad PLUS loans have historically also accounted for roughly one-third of total federal graduate borrowing annually.

To help offset the gap, borrowing limits for federal Direct Subsidized and Direct Unsubsidized Loans will increase by roughly 14% to 23%, depending on the type of graduate loan.

However, even with these increases, many graduate borrowers might need to turn to the private lending market to cover the gap between their cost of attendance and available savings, aid or federal loans.

Finally, repayment options will be simplified starting July 1, 2028. Instead of navigating a complex menu of plans, borrowers will choose between just two:

• A standard repayment plan, with repayment periods of 10, 15, 20 or 25 years based on total debt
• The new Repayment Assistance Plan, an income-driven repayment option in which monthly payments are tied to household income, starting as low as 1% and capped at 10%.

The phasing out of some of the current repayment plans will likely mean higher payments for some borrowers.

Already borrowing with PLUS Loans? Here's what you need to know

If you've taken out a Parent PLUS or Grad PLUS loan, or plan to do so before July 1, 2026, you're in a good position.

You'll be exempt from the new rules and can continue borrowing under the current program structure for up to three academic years or until your degree is complete, whichever comes first.

Even so, this is an ideal time to reassess your borrowing approach. PLUS loans are priced annually, and rates reset each May, so comparing PLUS costs with private loan options could uncover opportunities to save.

Many private lenders allow you to check potential rates using a soft credit pull, which won't impact your credit score.

Before considering PLUS or private loans, make sure you've maxed out federal Direct Subsidized and Unsubsidized Loans, which generally offer the most competitive rates and the most borrower-friendly repayment protections.

All borrowers should explore free funding options such as scholarships, grants and institutional aid — tools such as the Citizens Scholarship Search can help you identify opportunities that reduce the need for additional borrowing.

Planning for college? How to borrow smarter under the new rules

For families just beginning the college planning process, these changes make it more important than ever to understand the net price — what you'll actually pay after scholarships and grants — before committing to a school.

Sticker prices can be misleading, and with new borrowing caps on Parent PLUS loans and the elimination of Grad PLUS loans, it's critical to identify programs that are a good fit both academically and financially.

Tools such as Citizens' College Match can help you compare schools by cost, potential aid and overall affordability (the "net price"), giving you a clearer picture of what's realistic before you apply.

If you anticipate needing to borrow beyond Federal Direct Loans, start rate-shopping early. A soft-pull rate quote from private lenders can show you whether you qualify and at what rate, without impacting your credit.

If your credit profile needs work, this gives you time to improve it or line up a qualified co-signer who could help you secure better terms.

Repaying your loans? How to navigate the new plans

If you're already repaying student loans, there's no immediate action required. You can remain on your current repayment plan until at least July 1, 2028, when you'll need to choose between the Standard Repayment Plan and the Repayment Assistance Plan (RAP).

When deciding, look beyond the monthly payment. Compare how each plan affects your total interest cost, time to repayment and overall financial flexibility.

For some borrowers, refinancing federal loans into a private loan might also make sense, especially if you can secure a lower rate or shorter repayment term.

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Many lenders offer flexible refinancing options with terms ranging from five to 20 years, allowing you to customize a repayment plan that fits your budget.

However, refinancing federal loans means giving up access to such protections as income-driven repayment and potential future loan forgiveness programs, so weigh your options carefully before making a decision.

Plan ahead, borrow smarter

While the changes might feel overwhelming, they also create an opportunity for families to take a more strategic, informed approach to borrowing.

The most important steps you can take right now are to understand your options, compare rates and repayment plans and use available tools to chart the best possible path forward.

With proactive planning, you can navigate these changes with confidence and make choices that support both your educational goals and long-term financial health.

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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.

According to the Pew Research Center, 19% of Americans aged 65 and older held some kind of paying gig in retirement in 2023. That’s nearly double the amount in 1987, Pew reports. Their earning power has grown, too: Senior workers earned an average of $22 an hour in 2022, against $13 an hour in 1987.

And research from Northwestern Mutual reveals that around 60% of future retirees expect to need a monthly income that's the same or more as their current monthly income to retire comfortably. That’s mainly because they have insufficient retirement savings, the study notes.

But retirement and finance experts say these trends are positive ones for retirees, and for multiple reasons.

“Working in retirement can be hugely beneficial, both financially and psychologically,” says Ilir Salihi, founder and senior editor at Income Insider. “Many retirees, like my parents, find that complete leisure gets to be too boring after the initial honeymoon period, and part-time work or volunteering provides structure, social interaction and intellectual stimulation.”

From a financial point of view, even modest income around the minimum wage can significantly extend retirement savings' longevity. “That could delay the need for larger portfolio withdrawals during downturns,” Salihi notes.

Getting ready to work in retirement

U.S. seniors looking to get back into the working world should first take a reality check and then develop a strategy that makes sense for them.

“Before a retiree can decide to work or not after leaving their day job, they have to figure out what they want from the bigger picture,” says Mary Lee Gannon, a Pittsburgh, Pennsylvania-based executive coach who specializes in working with older career professionals. “That takes planning — and not just financial — as seniors reorient themselves to a new way of spending their time.”

If supplementing your retirement income is your highest priority, you should consider the roles that can generate the best pay. In general, the highest-paying side gigs for retirees are those that leverage your professional background, such as serving as a board member or corporate director, or being an instructor or guest speaker/lecturer.

Jordan Mangaliman, owner and adviser at Goldline Wealth Management in Fullerton, California, says: “Any of the above would be a great way to earn extra income while monetizing… expertise.”

There’s one caveat, and it’s a big one. Mangaliman points out that there are tax considerations for retirees working part-time, particularly regarding Social Security.

For retirees who have not yet reached full retirement age, and whose income is more than $23,400, $1 is withheld for every $2 earned, he warns, adding: "Your part-time income also counts towards provisional income, which may make more of your Social Security taxable.”

While full retirement age depends on the year you were born, it's 67 for everyone born after 1960.

The seven top-paying gigs for U.S. retirees

With those important considerations in mind, the next phase of planning is deciding which role would best suit your talents and experience. Here are seven high-paying roles, in order of highest to lowest hourly income:

1. Business and executive coaching

Pay range: $100-$200 an hour.

Retirees with specific corporate experience in talent acquisition and management, or in human resources management, can set themselves up as executive coaches.

“The best-paying side-gigs are professional service-related because there’s no overhead and you’re likely already an expert in a popular career field." Gannon says. “You can coach in your area of expertise and be in demand because most organizations don't have someone on staff with your niche knowledge. You can also be a trainer in corporate America in a specific area of expertise.”

Retirees can also create an online platform for coaching where individuals subscribe to content or pay for your services on a monthly or quarterly basis.

Gannon is living proof of how this can work. An ex-CEO, at age 64, she’s now an executive coach for people in their 50s and 60s, many of them in retirement. “I do this as a side gig,” she says.

2. Data recovery services/IT consulting

Pay range: $30-$40 per hour on the low end, $100-$200 an hour for higher-level gigs.

Chongwei Chen, president and CEO at DataNumen, Inc., a data recovery technologies company in Sheridan, Wyoming, said he’s seeing a big demand for freelance data recovery services.

“I've seen retirees with technical skills successfully offer data recovery services to local businesses and individuals for up to $200 an hour,” Chen says. “We’re also seeing a big demand for technology consulting, which could appeal to retired IT professionals who can offer specialized consulting in data recovery, cybersecurity or system optimization. Many small businesses desperately need this expertise and will pay up to $150 per hour to get it.”

3. Other professional consulting

Pay range: $100+ an hour.

Consulting can be extremely profitable for experienced professionals in retirement.

“My dad was a tax attorney and during tax season could easily pull in $10,000 to $20,000 for seasonal work during retirement,” Salihi says. "I know of a retired real estate agent who still gets $150 per showing if they want to take on a one-off listing."

4. Freelance writing

Pay range: $22 to $74 an hour, depending on experience and subject matter.

While artificial intelligence is an emerging threat to professional writers, businesses, professional organizations and the media still value human-generated content.

Jeremy Merchant is co-owner at Mad Mango Marketing, an SEO agency in St. Petersburg, Florida, that relies heavily on blogs written by experts. Merchant says his best writers are often retirees looking to make good money, simply recapping their knowledge from decades of specific industry experience.

“Seniors looking to find this type of work should try reaching out to SEO agencies online or on freelance writing job sites, in particular, to find a need for quality writing with decent pay per hour,” Merchant advises.

5. Bookkeeping/Financial services

Pay range: $25-$50 an hour.

AI is chewing into back-office functions, too, but companies still need humans with an understanding of business finances to pitch in as bookkeepers or financial data management specialists. “These financial professionals are always in demand, especially for small businesses,” Chen says.

6. Online selling

Pay range: $25-$50 an hour.

Sales jobs will prioritize the ‘hustle’ side of ‘side hustle,’ but if you have a particular set of sales skills or in-depth knowledge of a product, working part-time in retirement as an online seller can generate a decent amount of cash.

E-commerce is projected to be a $7.4 trillion industry in 2025, and established platforms, such as Amazon, eBay and Etsy, offer a good entry point if you're keen on selling handmade arts and crafts or wholesale merchandise.

If you know how to work with trusted suppliers and can build a robust brand, online selling could enable you to add a decent amount to your household budget in retirement, without leaving your home.

7. Teaching and tutoring

Pay range: $26 an hour.

Teaching and tutoring are among the best gigs for retirees. Many younger workers can't take teaching jobs that conflict with their 9-5 hours, or because they're busy with their young children in the evening and at weekends.

“Retirees tend to have grown children and plenty of time to set their own schedule,” says Ian Gardner, director of sales and business development at Sigma Tax Pro in Delray Beach, Florida.

“Parents trust the wisdom that comes with age, and if you're an educational expert on any subject, you can likely find an opportunity to teach it, whether in-person or online.” The average salary for a tutor is $26 an hour, according to Indeed.

If you’re a retiree with no teaching expertise, however, a good option could be teaching English as a second language (ESL) online. “While the rates are lower than high-end teaching gigs, they're well above minimum wage, and teachers can make more money the longer they work, particularly if they find their own clients and teach specific types of ESL, like business English,” Gardner says.

The best-laid plans lead to the best-paid gigs

Once you've identified your motivation for going back to work in retirement — and what compensation you need to make it all worthwhile — then comes the process of actually finding work. And it's not much different than when you looked for work during your career.

“To find the best-paying retirement side gigs, leverage your professional network,” Salihi advises. “Former colleagues often need temporary help or at least know of other opportunities, and LinkedIn remains invaluable for keeping in touch with old colleagues and employers who could point you in the right direction.”

If those options don't work, consider local Facebook groups. “Those tend to have higher success rates for gig work than national job platforms,” he adds.

Retirees should highlight particular workplace expertise and availability.

“That includes updating your LinkedIn profile to reflect that you are currently available for work, especially professional work like consulting, and to leverage referrals from people you already know who can open doors for you,” Mangaliman says.

Excellent places to search for jobs are local chambers of commerce, professional associations, FlexJobs, Retired Brains, Workforce 50 and the AARP Job Board, he adds.

Even more importantly, remember that, as a seasoned professional, you bring a lot to the table — and smart companies know that.

“Companies worldwide are calling on retirees to take on work on a project-by-project basis,” says Dan Zautis, a director at global talent firm Korn Ferry. “It's the strengths retirees provide that are in demand, from their meaningful career experiences and leadership skills, to their flexibility in the workplace.”

Companies also appreciate that most retirees don’t want to work full-time and, along with the passion that they bring to the business, "that's a plus," he says.

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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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"I have been in HR for over 30 years at a company that places high value on a supportive, positive work environment. Never have I seen so many recent hires let go — some within a week! I am speaking of Gen Z, born from 1997 through 2012.

"Over and over again, we find some of them completely unprepared for actual employment and lacking fundamental social skills or anything resembling a work ethic.

"In contrast to other generations, some in Gen Z have enormous deficits in their interpersonal skills. When it comes to showing appreciation — just saying 'thank you' — for help given to them by coworkers and supervisors, some reek of entitlement, have a lack of civility and say nothing.

"We offer summer internships for agricultural business majors and send students around the country — even abroad — for hands-on experiences. Seldom do any send a thank-you card, in our experience, or even call to express appreciation.

"In part, I blame their universities for not requiring students to take the time to show gratitude. This ghosting is an insult.

"Something's wrong. Perhaps some of the people you've interviewed over the years might have an explanation and insight for us. Thanks, 'Dallas' from Dallas."

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Dallas' comments about Gen Z are not new. A Cake.com study, Gen Z in the Workforce, reveals that 40% of leaders feel that some in Gen Z are not prepared for work. Seventy percent of managers said they feel Gen Z lacks communication skills and a work ethic.

Yet, in an NSHSS Career Interest report, 65% of Gen Zers "acknowledge they will have a lot to learn, and they're eager to do so."

I ran Dallas' comments by two business professors and friends of this column — Lyle Sussman, professor emeritus in the College of Business at the University of Louisville, and David D. Schein, professor in the Cameron School of Business at the University of St. Thomas-Houston. Here is their analysis, which I have paraphrased.

Our world of digital communication leads to a lack of interpersonal skills

Generation Z, unlike Baby Boomers, grew up with a remote control in their hand, never having to get up and manually change the channel on the TV. You just push a button, and there it is! This, among other things, has no doubt contributed to a sense of entitlement in some individuals that Boomers didn't experience.

Some Gen Z college students lack interpersonal skills in part because of a reliance on digital communication, which greatly reduces personal interaction and inhibits the learning of social cues, which can result in psychological immaturity.

In the working world, we expect civility and gratitude. An environment that lacks those elements can become toxic, impacting relationships with co-workers, vendors, investors and customers. People lose their jobs or quit. Employment litigation costs are impacted.

The professors commented that it all begins at home and wondered whether some children are actually taught manners these days.

Employees lacking essential social skills will not last long

It is fundamental — and common sense — to thank a colleague when, for example, a new hire in a sales organization is given a lead that becomes a sale. Failing to do so is a slap in the face to the colleague, which implies, "Why should I thank you? That's part of your job!"

Employees who lack such obligatory social skills damage morale and will not last long.

The key question today is, "What do we do with these young adults? How do we get them to understand the importance of what we are discussing? What can be done for an 18-year-old who grew up never hearing the words 'please' or 'thank you,' who had a remote control, cell phone and computer, all contributing to a sense of entitlement?"

Most likely, that person will have to learn the life lessons of being denied employment or not getting the promotion and, at some point, realize that they are the agent of their own fate, that their lack of being kind and considerate of the feelings of others is a form of self-sabotage.

Good manners are noticed, Sussman said. "When we see students interact in a mature way that exhibits good manners, as it is so rare, we think, 'That's a future successful person — a good boss or a competent, respected professional."

Another issue is that too many business students do not watch or read the news. "They need to know what is happening both on Wall Street and Main Street. By spending five or ten minutes a day with the news, they will be the person who stands out at a job interview," Schein suggested.

Filling in the gaps with etiquette coaches

Today, major corporations are employing etiquette coaches, who, during the onboarding process, advise new hires on how to diplomatically interact with colleagues and others. Being taught these principles from day one helps new employees see how positive interactions with coworkers and customers are essential to the company's culture.

They are shown how to smile while communicating, make eye contact, say "please" and "thank you." They're counseled on how to show empathy, to be human beings who are able to show concern for others.

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Both Sussman and Schein concluded our interview by suggesting a return to the way children were raised in the past.

"Somehow," Schein said, "families need to take a few steps back to the time when children were taught manners, could give good eye contact and truly listened instead of merely hearing."

What you can do

If you find yourself in a situation in which a colleague, Gen Z or otherwise, did not respond to you appropriately, Sussman recommends:

• Schedule a face-to-face, private meeting with your coworker.
• Assertively, not aggressively, describe what they said or did (offense by commission) or failed to say or do (error by omission).
• Highlight why that was unacceptable.
• Obtain a commitment that the specific offense will not be repeated and that they can and should do better.

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.

Take Jim O’Connell, a New Orleans-based newly minted charter boat captain for GetMyBoat.com, an Airbnb-like boat rental company that allows entrepreneurial boat owners to rent out or charter their vessels to customers.

"I’d been sailing for many years by the time I retired, and I had wanted to have a way I could supplement the maintenance costs of the boat," he says. "So I decided I would go get my captain's license and do sunset charters on Lake Pontchartrain."

O’Connell, who duly earned his U.S. Coast Guard Captain's license and began hosting sailing charters on his boat, says now he gets to meet people, earn money and enjoy being on the water.

"It’s a great option for many retirees who may own a boat but don't have a reason to go out on the water as much as they'd like," he notes. "By hosting charters, you have the opportunity to use your boat, meet new people and earn money in your retirement."

He's not alone.

According to Teamshares, an employee-owned business services company, 40% of small business owners are Baby Boomers. A separate study found that between 1996 and 2007, U.S. citizens aged between 55 and 64 had a higher rate of entrepreneurial activity than those aged 20 to 34.

So what's giving older entrepreneurs the edge?

Benefits of age and experience

Having a successful career to lean on and learn from gives older business owners a big advantage.

“Our recent report on 'solopreneurship' shows that Americans aged 65-plus make up about 15% of all solopreneurs,” says Andrew Chamberlain, principal economist at Gusto, an online payroll, benefits and HR software platform for small and medium-sized businesses.

Chamberlain says Baby Boomer and Gen X solopreneurs — business owners with no employees — often launch businesses with higher starting salaries than younger founders.

"While solopreneurs in general see revenues grow from about $290,000 in year one to over $500,000 by year five, older founders tend to pay themselves more in the early years compared to Millennials and Gen Z (who often reinvest in growth)," he says.

"These experienced entrepreneurs may launch with stronger networks, existing client relationships, or initial credibility, advantages that often come with age and career history," Chamberlain says.

But the numbers don’t tell the whole story. Those who’ve launched businesses in retirement have real tales to tell, often covering the emotional side of the journey they took — and how they're thriving because of it.

Here are five retirees who started their own businesses and are loving the experience, regardless of their age.

Dawn LaFontaine, owner of Cat In the Box LLC, Ashland, Mass.

Dawn LaFontaine started her pet products business, Cat In the Box, when she was 59 years old.

"My husband had just lost a job he'd held for 15 years, and I'd applied for several jobs I was overqualified for and didn't even get asked back for a second interview," LaFontaine says. "I decided that I was going to have to take control over my own working future, even though I hadn’t been working, if I was going to have one."

LaFontaine says she’s never looked back.

"My products have been featured in the Boston Globe, Parade Magazine and Fox News, among many others, and are in boutique pet stores around the country and in Europe," she notes. "Last year's sales were up 84% and are on track to double this year."

Her advice for retirees thinking about starting a business in retirement is twofold:

"Just start," she says. "Don't wait for the perfect idea to come to you. It's more about execution than product, and you'll probably need to pivot at some point anyway."

She also advises older Americans to stop analyzing and start doing, but with a plan. "Start very small so you don't jeopardize your life savings," she adds. "It's possible to start a business on almost nothing."

Janice Costa, owner of Canine Camp Getaway, East Durham, N.Y.

Janice Costa turned a side gig into something much more profound when the global pandemic forced her into an early retirement.

"I’d been dabbling with the idea and I decided to grow it into a real business rather than either just retiring, or going back into the workforce," she recalls. "Essentially, I went from a hobby to an S-Corp running Canine Camp Getaway, a business that plans vacations for dogs and the people who love them."

After working nearly 27 years in a corporate job for a company that required long hours and changed hands every three to five years, Costa says she was, well, dog-tired.

"When the pandemic pretty much forced me into retirement, I had mixed feelings," she says. "I'd started doing an annual dog vacation years ago, largely because I traveled a lot with my job, and felt it was unfair to leave my dogs behind for vacation when I was gone so much already."

Costa turned that idea into Canine Camp Getaway, feeling people might share her desire to go on vacation without leaving their dogs behind. She was right on the money.

The idea was to create a vacation where people could meet like-minded dog lovers while enjoying dog sports, activities, classes, vet seminars, dog-friendly evening entertainment and dog-focused charitable initiatives.

"I revamped the structure to become an S-Corp, started using QuickBooks, and began advertising in earnest,” she says. “I began doing more with selling [branded] merchandise at my events, and I added a second location, with multiple vacations a year in both New York and Pennsylvania."

Today, Canine Camp Getaway brings together as many as 130 guests per event and, depending on the size of the gathering, it offers anywhere from six to 11 classes every hour of the day during vacations, with courses on agility, nose work, hiking, swimming, dock diving and barn hunting, among others.

"I not only get to work with dogs, which I love, but I get to feed my creative spirit, coming up with new classes, craft ideas and event themes," Costa says.

Michael McCaman, cofounder and chief strategy officer of Orion Therapeutics, Union Bridge, Md.

Michael McCaman worked in the biotech industry for 35 years, always as a team member and team leader, but never a project owner.

"I was doing consulting at the time and met a young man with an idea and a patent application that I felt I knew how to develop and apply to the new gene editing field," he says. "We talked and agreed to make a startup out of it."

The company, Orion Therapeutics, was founded to develop nanoparticles for delivering RNA, like Moderna or Pfizer's COVID vaccines. "The special lipids (fat molecules) used to make those vaccines are painfully expensive to access, so we thought we could be a disruptive force in the growing mRNA delivery field and offer a safer, cheaper lipid option," McCaman says.

McCaman felt his knowledge and network with the industry were sufficient to make a go of it. "I had the luxury of saying I do not need any salary (yet) since I had and still have consulting income," he says. "That made it a pure play of passion and curiosity for me, which is really nice and allows me to stay calm all the time."

Age played a part in the decision, too.

"To attempt something like this as a younger man with a family to raise would have taken a lot more confidence than I had at that time," he explains.

Karen Hastie, founder of the Chamber Perks App, Sudbury, Ontario

Karen Hastie launched her technology startup business at 60, an age when most retirees or people approaching retirement have a different mindset; primarily, they want to slow down. "I realized I didn't feel that way," Hastie says. "I didn't feel 'done' yet, despite being a small business owner for 30 years. I felt I had more to give, both to myself and my community."

As Hastie phrases it, she realized that her age was her strength.

"I wouldn't have to start this business to put food on the table, so I could bring more purpose and passion to it," she says. "Moreover, my wins and failures as an entrepreneur have taught me enough to do this with confidence. I didn't think I was crazy to be levelling up at 60. If anything, I felt ready for an exciting chapter of life."

Hastie’s business, Chamber Perks App, a Canada-based Chambers of Commerce services provider, is thriving. "We’re doing well, both in numbers and in the value it is creating for small businesses, local Chambers of Commerce and communities," she says.

Hastie advises entrepreneurial retirees to steer their own path and ignore the naysayers.

"Don't live your life meeting society's expectations, and this applies especially during retirement," she advises. "While you might feel intimidated by all the new skills out there, remember that your wealth of experience and knowledge is a unique strength that will take you farther than you can imagine."

Drew Parker, creator of The Complete Retirement Planner (TCRP), Seattle, Wash.

Before deciding to retire, Drew Parker knew that he needed a detailed financial plan to ensure the timing was right and that he was financially prepared.

"I couldn't find a planning tool that didn’t rely on misguided assumptions and generic benchmarks, and that didn't require a math degree or 75-page user’s manual," Parker says.

"I also learned that 75% to 80% of households had no written financial plan and had no idea how to create one."

Parker saw that knowledge gap as an opportunity to not only help himself, but others, too.

"Having experience building financial planning tools for a $5 billion company, I created a planning tool for individuals based on the same financial planning principles used by professional advisers."

He created The Complete Retirement Planner (TCRP) for less than $600, as well as starting a corporation, designing an e-commerce website and making TCRP available for everyone online.

Parker describes TCRP as "easy for anyone to use, with plenty of notes and explanations, so calculations can be followed/understood, and all the detail needed for a comprehensive financial plan."

"Sales were slow at first, but word spread and within a year we had customers in every state," he says. "TCRP has grown every year since, with new features being added."

Parker says that retirees shouldn’t hesitate to use their skills and experience to make a difference for others. "It’s a good idea to challenge yourself, and to have some fun," he says. "You can always 'build a better mousetrap' or provide a better service, as long as you are passionate about it."

Will there be roadblocks? Sure, Parker says. "But you can overcome them, as you have in the past."

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Overall, more than 260,000 federal employees have either left or are slated to leave since the shift began.

Meanwhile, in the private sector, tech companies alone shed almost 75,000 jobs by the end of May, according to a report by Challenger, Gray & Christmas — driven by cost-cutting amid ongoing economic uncertainty.

Whether you've been downsized from a government post, laid off from a tech company or pushed out of a nonprofit, the feeling is the same: like being shoved out of a plane with no parachute.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

You might be asking why you chose this career path at all — or staring at headlines wondering how your work became political or obsolete overnight.

But pause the panic. Here's what's still true: You matter. A lot.

You've got valuable experience

It's easy to feel flattened when loud voices with little understanding reduce your work to a punchline. But don't buy the narrative. You were never "just a bureaucrat," "just a manager" or "just staff."

You were, and still are, a skilled operator navigating some of the most complex systems in the world.

That experience isn't just valid — it's valuable. And it's in demand.

Let's look at the numbers. Those 260,000-plus workers leaving federal roles? That's a massive release of talent, experience and institutional knowledge into the broader economy.

The same goes for tens of thousands of private-sector professionals now navigating their next act.

That's not collapse. That's a talent wave. And you're part of it.

You're part of a movement

Let's put this in context. Nearly 60,000 federal workers have already been fired; 77,000 have taken buyouts. An additional 150,000 may still be on the chopping block. According to New York Times estimates, about 12% of the entire U.S. government workforce is either gone or in flux.

But that number really represents a massive wave of experience and institutional knowledge suddenly available to the broader economy.

That's you. And that's power.

You're ready for a change

So, let's be clear: You're not obsolete. You're valuable. And more than that, you're poised for a pivot.

As Stephen Covey said, "Shift your paradigm." This isn't the end of your career story. It's a new chapter.

The private sector, especially startups and high-growth companies, crave the skills you bring. And what you've picked up navigating federal systems isn't just résumé filler; it's entrepreneurial gold.

Consider this:

• You're fluent in regulations, which can save a company millions in compliance headaches.
• You've managed stakeholders across fractured, high-pressure environments.
• You've optimized processes under resource constraints.
• You know how to assess risk through trained, practiced analysis, not by gut feeling.
• You've written and evaluated grant proposals, pulled off logistics miracles and brought order to chaos.

Translation? You're not just job-ready; you're business-critical. And businesses are catching on. Increasingly, they're hiring ex-government pros precisely because you can help them navigate the growing maze of rules, risks and requirements without flinching.

So, if you're staring down a sudden, involuntary exit, here's the better lens: This is a relaunch. One where your public service isn't a handicap — it's your unfair advantage.

Some practical steps to consider

Now, let's talk practically.

This isn't about "finding another job." It's about redefining what you want this next act to look like.

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Do a self-inventory. Think like a strategist: Strengths, Weaknesses, Opportunities, Threats — SWOT it out.

• What are your assets?
• Where do you shine?
• What kind of risks are you comfortable taking?

This clarity will make the path ahead more intentional and way less overwhelming.

And before you start blasting résumés, network. Not the performative, awkward kind. Build real relationships. Ask questions. Share something useful. Offer help before you ask for it. Real networking is about generosity, not self-promotion.

How about being your own boss?

Curious about entrepreneurship? Good. Some of you are built for it. But be honest: Do you have the financial runway? Are you ready for risk?

If you need to earn quickly, lean toward low-overhead, service-based businesses. Your skills — compliance, logistics, procurement, grant writing — are already a business model.

Start here:

• Offer consulting in the sector you know
• Write proposals or manage vendor contracts
• Help startups navigate policy, systems or reporting requirements
• Build a business around the pain points you already understand

But don't skip the legal fine print. If you've signed non-competes or confidentiality agreements, know the rules before you leap.

When in doubt, check oge.gov or get a legal consult. Smart protection isn't fear — it's foresight.

Remember this, too: You know procurement. You know, operations. You know how to make systems work. There are companies out there struggling with exactly the problems you've already solved. Who better to help them?

You.

Remember: You have lots to offer

Yes, the transition can be rough. Clients ghost. Startups fumble. But in exchange, you gain ownership, flexibility and the freedom to shape your career on your terms.

And if you worked in DEI, climate, public health or other "under-fire" roles, don't lose heart. Trends shift. But equity, sustainability and social good aren't fads. They're values.

Stay sharp. Stay ready. The pendulum will swing back.

In the end, this isn't about rejection. It's redirection. The job may be gone, but your skills, drive and impact? Still here. Still strong.

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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.

A new hire isn't a one-size-fits-all solution, and without a structured intentional approach, you risk losing both time and talent.

Properly training new advisers starts with clarity — clear goals, defined processes and meaningful mentorship. It's about building a foundation that not only supports their success but also strengthens your team and ensures long-term sustainable growth.

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.

Lay the groundwork with clarity

A successful training program starts with a clear foundation. New advisers need a strong understanding of your firm's production goals, investment philosophy and business strategies to integrate seamlessly into the team and client relationships.

Here's how to lay that groundwork effectively:

Introduce your investment philosophy statement (IPS).


Your IPS is more than a set of guidelines; it's the road map for how your firm operates and what it promises clients. Help new advisers understand this vision so they can align with both the team and client expectations.

Balance flexibility with structure.

While boutique services require adaptability, having a menu of standard solutions provides:

• A reliable starting point for new hires
• A framework to determine when exceptions truly serve the client's best interest

Clarify how your firm drives business.


New advisers need to know whether your firm focuses on high-growth marketing strategies or thrives on client retention and referrals.

Consider these key points:

• Across many firms, a high percentage of new business comes from existing relationships
• Understanding this balance helps advisers prioritize between generating new sales and nurturing current clients
• Ensure your first-appointment pipeline can support all advisers' needs to avoid unnecessary friction

Align goals, strategies and expectations.


By connecting production goals, marketing strategies and your IPS, you create a cohesive structure.

This alignment allows advisers to:

• Ask the right questions from day one
• Pursue targets that align with firm objectives
• Understand how their role fits within the team and the larger strategy

Understand the timeline of success

Onboarding new advisers takes time and patience. While most advisers want immediate results, effective training goes beyond handing them a script or attaching them to a few meetings.

Here's how to structure their journey for long-term success:

Focus on cultural integration in the first 90 days.

• Familiarize new advisers with your IPS, operational workflows and planning tools
• Introduce them to the support team, including marketing, scheduling, case prep and administrative staff
• Help them understand how the firm's moving parts work together to prepare them for success

Build long-term success over 12 months.


The full development cycle spans a year, with clear milestones to track progress across these key areas:

• Cultural integration. Encourage new hires to immerse themselves in your firm's community. Building relationships with mentors and peers helps them understand "how and why" your practice operates.
• Planning excellence. Train advisers to master your IPS, planning strategies and tools so their knowledge aligns with how you serve clients.
• Client relationships. Gradually involve them in client meetings, events or reviews as trusted members of the team.
• Sales process. Allow advisers to practice your sales process and refine their communication skills under guidance to authentically connect with prospects.

Embrace deliberate, intentional development.


Rushing the training process can backfire. A consistent approach fosters confidence, improves retention and sets up advisers for long-term success.

Interested in more information for financial professionals? Sign up for Kiplinger’s new twice-monthly free newsletter, Adviser Angle.

Tailored training for every personality

Every adviser is unique, and a one-size-fits-all training approach won't cut it. Personality assessments, like the DiSC profile, can help you understand whether someone thrives in a structured environment or prefers a more self-directed approach.

Here's how to help ensure the right fit for long-term success:

Use personality insights to guide development.

• Assess whether an adviser prefers rigid processes or a flexible, self-directed environment
• Align their training with your firm's culture to create a seamless fit
• Leverage their natural strengths to boost confidence and performance

Equip advisers with the right tools and mentorship.

• Provide technological tools and relational support to set them up for success
• Pair mentorship with modern strategies that accelerate learning
• Focus on clear production goals that align with your investment philosophy

Foster a collaborative, supportive environment.

• Create a culture centered on clear expectations and shared wins
• Encourage teamwork and communication to build confidence and cohesion
• Remember: When advisers feel supported, they succeed — and so does your team

The path forward


Well-trained advisers aren't just assets — they're the backbone of your firm's future. By investing in tailored training, mentorship and a collaborative culture, you'll position both individuals and your practice for sustainable growth.

It's not just about hiring talent; it's about building a thriving community where everyone succeeds together.

Advisors Excel's mission is simple yet profound: to help good advisors become great business owners while enabling their clients to enjoy the retirement of their dreams.

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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.

Nearly two-thirds of Americans recently polled by LendingTree think a recession is coming. And 41% expect unemployment to increase over the next year, according to the Federal Reserve Bank of New York — a seven percentage point jump since January. Two in five workers are personally worried about losing their job in the next 12 months, a 2025 study by the American Psychological Association found.

Are they right to be concerned? Although private-sector hiring hit a two-year low this spring, unemployment has been holding steady at just over 4%. And many forecasters have moderated earlier ominous projections about the economy, with Wall Street firms such as Goldman Sachs and J.P. Morgan recently lowering their estimated risk of recession this year to 30% to 40%, from as high as 60% in April.

Still, history shows the job market is typically a lagging indicator, turning sour only after other parts of the economy have tumbled. And career experts note that conditions differ from industry to industry — layoffs have already been rising in the technology, finance and retail sectors — and the steps you take to strengthen your job prospects today will hold you in good stead no matter what happens to the economy.

“It’s smart to prep while the sun is still shining,” says Nancy Ancowitz, a career strategist in New York City. “Think of it as career insurance.”

Job experts suggest that you make these moves now.

Refresh your branding

If you’re laid off, you want to be able to hit the ground running, with an updated résumé, LinkedIn profile and professional website (if you have one). Make sure the picture you present to the world reflects how you want to be perceived and the kinds of roles you hope to attract. “If people don’t know what makes you special, they won’t think of you when opportunity knocks,” says Ancowitz, author of Self-Promotion for Introverts.

Focus less on job titles and responsibilities and more on the results you have achieved and qualities you bring to your position. Be specific and quantify results wherever possible. Rather than simply saying you’ve led partnerships, for example, it’s better to say you’ve generated 15% in incremental revenue through joint ventures with new affiliates.

The key, says Ancowitz: “Always frame your message in terms of what you offer — not just what you want.”

Warm up your network

Despite the advent of artificial intelligence and other tech tools to screen job candidates, who you know is still a critical element of landing a job, should you need a new one. “Research shows that more than half, and in some cases as much as 80%, of hiring involves people talking to people,” says career coach Beverly Jones, author of Find Your Happy at Work. “Building human connections is a big part of how you create opportunities.”

The best time to reach out to former colleagues with whom you’ve lost touch and establish new contacts in your field is when you don’t actually need a job and aren’t asking anything of them. It doesn’t have to be a heavy lift: offering a quick check-in or hello via email or LinkedIn, commenting on their posts so you show up on their radar, and meeting for an occasional coffee are all good ways to maintain a connection. “These small touches compound — and keep your network warm and active when you do need it,” Ancowitz says.

Be sure to connect with people who work in other areas of your company as well as contacts outside of it. “Your manager might be one of the people who is laid off, or your division could get the ax,” says career coach Caroline Ceniza-Levine, founder of DreamCareerClub.com. “But there may still be opportunities in other areas of the business.”

Make yourself indispensable

Increasing your perceived value at work helps reduce the chances that you’ll be among those laid off if your employer needs to downsize. Maybe you could take an online course to learn a new in-demand skill. (“You’d have to be living in a cave not to know that understanding the impact of AI on your business is in the zeitgeist now,” says Ceniza-Levine.) Or perhaps you could identify a new project to boost revenue, or position yourself as the go-to person for a new technology or a key client relationship.

“Be the person people rely on when it matters,” Ancowitz says.

Also make sure you know your manager’s most urgent priorities — and that your suggestions and actions align with them. “You look good if you make the boss look good,” says New York City career coach Roy Cohen. “Plus, when we work for someone who feels like we’re loyal to them, they are going to work a lot harder to protect us.”

Work on your Plan B

If a downturn does develop and you are laid off, it could take a while to find a new position. During the Great Recession, the median duration of unemployment rose from nearly nine weeks in November 2007 to a peak of 25 weeks in June 2010, with older workers needing more time than younger ones to find a new position.

Think about ways you could bring in extra income if you were to find yourself in job-search mode. Maybe you could turn a hobby such as photography or woodworking into a lucrative side hustle. Or you could work as a consultant in your field.

Former employers are an especially good target for a consulting gig — one that could lead you to find your next job. So-called boomerang employees now account for 35% of new hires, up from 31% in 2024, according to payroll provider ADP.

No matter what specific action you take, though, the important thing is to do something. Says Jones, “It won’t be wasted energy, because the steps you take to protect your job now will help you advance professionally no matter what happens with the economy.”

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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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 unravel so quickly. Understanding why this happens can help you hold onto these connections, even after you’ve clocked out for the last time.

Several factors contribute to this, although other reasons might also play a role.

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 might focus on personal fulfillment, including traveling or spending more time with family.

That can sometimes conflict with the work goals of friends still in professional roles in a full-time capacity. These differing schedules and interests can strain ties.

Not making the effort to stay in touch

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

Without the office, maintaining contact requires intentional meetups, which might not happen if both parties don’t make it a priority.

Emotional disconnect

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

When you stop talking about work stuff, the friendship might fizzle without that shared connection.

You might even find you have nothing else in common, making any work-related friendship disappear.

Age-related shifts

It’s an unfortunate truth, but ageism can impact relationships, both at work and outside the office. For anyone age 50 or older, perceptions of aging — one friend looking forward to retirement and another just beginning their career — can create friction.

A 2025 Harvard Leadership & Happiness Laboratory article suggests that older adults find it more challenging to maintain work friendships because society today prioritizes productivity above building personal connections.

How to maintain friendships after work

When people leave the workplace, friendships can fizzle. 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: Schedule regular check-ins with former colleagues, such as coffee meetups or video calls to replace the interactions lost from leaving your job.

Join new communities: Before leaving the job, ask if your coworkers belong to local groups, clubs or classes that align with your interests.

Find shared interests: If coworkers have dissimilar interests, pursue hobbies or activities on your own to meet other people with similar passions beyond workplace ties.

Be open to forming new friendships: Take this opportunity to connect with people from other backgrounds and age groups. Reach out to past friends and acquaintances. Rebuilding old connections can lead to new friendships.

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 work.

Seek professional support: If loneliness or the loss of a close friend at work feels overwhelming, consider consulting a counselor or joining a support group.

These resources can help navigate the complexities of these emotions and develop strategies for connection, especially for individuals age 50 and older who are facing age-related transitions out of the workplace.

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, joining a club or forming new friendships can help you process the loss and move forward confidently.

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"I grew up in a family that still owns several small neighborhood hardware stores, started by my grandfather, so I know a lot about what it takes, but Leroy has no business experience at all.

"When I ask, 'Why?' he replies, 'I need to prove myself to your family.' Do you know someone who can share what it takes to start a business that is sure to fail? Thanks, 'Bea.'"

There is another way

My reader's email could not have arrived at a better time, as I was just about to interview David Whorton, Silicon Valley entrepreneur and author of Another Way: Building Companies That Last … and Last … and Last.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Whorton offers a refreshing approach to building a business that endures, also known as an evergreen business — the goal is to put people first. "There is another way to build a successful business than the current philosophy of 'bigger, faster is always better,'" he says.

He shares with us how to start a successful business by setting out the steps that can contribute to failure.

Failing to conduct a risk assessment

Don't leap first, figuring that you'll simply work out the details later.

Risk comes in four major buckets:

• Market
• Team
• Technology
• Financing

A would-be owner needs to ask themselves many questions related to these four buckets:

• Do you understand the market, the intended customer and their willingness to buy?
• What will be required from all the technologies your product or service will rely on to be differentiated?
• Where are you going to find the good people you will need on the team?
• Will you be able to build it from its own cash flow or need to raise outside capital? If outside, what is the likelihood of successfully raising the funds required?
• What does your product or service and the products or services associated with it cost? How will you provide service and support?

Not knowing the answers could inevitably lead to your business failing.

Quitting your job and having no income separate from your new business

Your job and current paycheck might provide you with a safety net. "If you can continue to bring in income while building your company, you will give yourself more time and much less anxiety," Whorton underscores.

Not thinking through the business model

Whorton cautions against relying on what you see in other, similar businesses. You need to think about what you want to achieve and resist using the industry-standard business model.

Consider which business model is best suited to your concept, your business and your funding strategy: For example, retail, franchise, third-party distribution, marketing-driven and direct-to-customer (internet) sales all have different benefits and cash requirements.

If you want to build an evergreen business — one that will endure — you'll want a business model that generates cash early and does not rely on outside equity or debt.

Falling into the 'if I build a great product or service, they will come' mentality

Ask: How am I going to get this product in front of my customers? Through stores, partners, a third party, field sales representatives or other sales or marketing programs?

Biting off more than you can chew from an emotional perspective

Are you psychologically able to deal with the people issues that arise in any business?

Being a founder can be a lonely and very stressful process for a number of years. There is a lot of uncertainty associated with establishing and running a business. For example, Whorton says, "You lose a major customer, half your revenue vanishes, and you think, 'Oh my gosh, if I don't have a strong balance sheet, I have to lay off people! I just can't do that!'"

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Ask yourself and the people who know you best: Am I ready for these challenges at this stage of my life?

Feeling threatened and therefore not hiring people who have more experience than you do

Whorton points out that you need to hire people who can help your business succeed. "Just because you get along on the local baseball league team does not translate into that person being a competent, honest sales representative. Hiring people whom you are just friendly with, but you know little about their character or capability, spells trouble."

Don't ignore red flags, such as "I know that he never stays employed at the same place for more than a year, but I really like him, and he has a lot of cool things to say about how he works." The fact that this person has not survived in one place for more than a year tells you that something's wrong, and you have to dig into it.

Remember that character counts. "When you get good people with great character, take care of them and let them shine," Whorton underscores.

Going into business because you feel it's expected of you, including joining a family business

Running a business is hard, so you should really want to do it.

You want to go into the business with the attitude, "This is my purpose in life — I want to have a team that is allied with my vision and values." A red flag is someone saying, "I've got this idea. Now, I'm not really in love with it, but it seems to have some traction, so I'm going to run with it."

An inspiring read

Whorton concluded our interview with these comments: "If you are starting a business, ideally, it is one that you want to dedicate the rest of your life to. That's the secret to evergreen companies that endure well over a hundred years.

"My advice to college students who are vaguely thinking about getting into business one day is to develop a curious mind and consider yourself to be a lifelong learner. Pursue a well-rounded education and discover the common denominators of prior and current business leaders — what helped them succeed?"

Reading Another Way was as inspiring as my interview with its author. Whorton's candor made me feel as if we'd known each other for years.

If you are thinking of opening your own shop, Whorton shows you the way to building that place on the planet you will love to return to every day.

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.

“That set a precedent, and I thought ‘I’m going to do that for my grandchildren,’” she adds. Today, with five grandchildren aged from 12 to 3 years old, and a sixth on the way, she has been socking away about $10,000 a year per child.

She’s not alone. Baby boomers are the most well-heeled group of Americans, holding $82.4 trillion in wealth, according to the Federal Reserve. With that kind of moolah, many are choosing to transfer some of that wealth to their grandchildren while they’re still alive and kicking, according to Susan Hirshman, director of Wealth Management for Schwab Wealth Advisory and Schwab Center for Financial Research.

“Years ago, all anyone wanted to talk about was, ‘how much money can I make,’” she says. “Now the conversation is more about, what do I want to use my wealth for, and we’re talking a lot about their legacy while they’re still alive and seeing the benefits.”

Education for grandchildren has become a priority, she says. There are a handful of ways grandparents can help foot the bill totally or partially to fund a grandchild’s education, but financial advisers are quick to warn: Don’t drain your retirement fund to do it.

“You can finance education. You can’t finance retirement,” Hirshman says.

1. Let’s get started

Rule No. 1: You have to make absolutely sure you are saving correctly for yourself first, accounting for your lifestyle and future wants and needs, as well as having an emergency fund in place and reserves to cover medical and other unexpected needs. No one wants to outlive their finances.

2. The talk

Rule No. 2 is communication with the parents, according to Hirshman. “You need to understand what their plans are and how your plans and their plans meet,” she says. “Maybe parents don’t want you to do it or have other ideas.” Know too that some steps you might take to help fund college could affect financial aid eligibility for parents or the grandchild.

3. Should you just write a check?

Yes, that is an option. But it’s not the smartest choice when it comes to taxes. If you don’t care about tax deferrals and incentives, remember that the IRS has gift-giving rules. You can bypass those exemptions by writing the check directly to the school, according to the IRS, but that applies only to tuition.

4. The 529 plan

Let’s turn to tax-free options. The most common savings approach is the 529 Plan. These accounts allow you to add as much as $19,000 each year, equal to your full annual gift exclusion, without being liable for capital gains taxes when withdrawing for qualified education expenses.

Contribution limits and deductions vary from state to state, and you’re allowed to have 529 plans in more than one state. The IRS won’t be involved unless you exceed the annual gift allowance. There are no federal tax deductions, but many states offer deductions for in-state plans.

Besides tuition, those funds can be used for fees, books, computers and supplies, as well as tutoring, studying abroad or post-secondary education and more. And they’re transferable to another beneficiary, such as a younger sister or cousin.

5. Custodial accounts

This is another savings account path with terrific pros and some serious cons to opening them for children. Under the Uniform Gifts to Minors Act (UGMA) and the Uniform Transfer to Minors Act (UTMA), these accounts allow anyone to contribute cash, stocks, bonds, CDs and several other securities with no limits to the total funds held in the qualified education expenses-only account.

Grandparents — actually anyone — can contribute as much as the $19,000 annual gift tax exclusion per child, without encountering the attorney fees and other associated costs tied to trusts. But these are taxable investment accounts and the grandparent is the custodian of the account until the child reaches adulthood. The assets then transfer to the beneficiary, who can use them however they wish. College? Maybe not.

“We’ve all heard the story of the kid saying, ‘I know you wanted me to go to college, but I'm going on a motorcycle trip across Africa instead,’” Hirshman says.

6. Coverdell accounts

The Coverdell Education Savings Account is much like a 529 plan, but with income and contribution limits that might offer a good starting point for those with lower modified adjusted gross incomes. In 2025, those were $110,000 for single filers, and $220,000 for married couples.

Unlike 529s, Coverdell contributions cannot exceed $2,000 per beneficiary per year, according to the IRS. While two sets of grandparents — or anyone — may open separate accounts for the same child under age 18, the total annual contribution is still capped at $2,000. Also, when the grandchild turns 18, the account and distributions are theirs.

Coverdell accounts can be combined with other education savings accounts, or can be rolled over into a 529 plan without tax implications if it’s for the same beneficiary.

7. Irrevocable education trust fund

Generally used as part of a larger estate plan, it gives grandparents far more flexibility than 529s or Coverdells, and one trust can be created for a number of grandchildren. The funds are legal arrangements that can generate income that can be taxed, including capital gains that must be addressed by the trustee and later by the beneficiary after the trust is handed over. They’re not as tax-efficient as a 529 or Coverdell, but they can help reduce grandma’s taxable estate by excluding the assets from her estate.

Typically, there are no investment restrictions unless they’re spelled out in the trust. And they do fall under federal gift tax laws, whether it’s an annual exemption or the lifetime exclusion. That’s why it’s important to have a trustee that you, well, trust.

These aren’t cheap, requiring trustees, lawyers and paperwork, not to mention ongoing maintenance. But the assets are protected in trusts and the flexibility they offer can be compelling.

8. Pay off the student loan

Now there’s a surprise. The grandchild takes out loans to pay for school and lo and behold, her grandparents take over the payments (no tax deduction) when she graduates.

9. Reevaluate your plans

In a perfect world, everything you plan in 2025 will play out for the next 20 or 30 years. But, alas, we do not live in a perfect world. That’s why it’s important to update your plans on a consistent basis, double-checking that you’re still on track to meet all your financial and lifestyle goals. Who knows, maybe changes will be positive.

10. Just do it

Yes, there are many hoops you can jump through to gain tax deferrals and savings, but grandparents can also just do it. That’s not to suggest skirting tax laws, but giving your grandchild money here and there over the years, earmarked for college, works too. Of course, it opens the door to dollars getting spent on other things, but at least you tried.

Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.

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The best time to prepare for a board role isn't after you've stepped down. It's while you're still in the thick of your career, when your influence is high, your experience is current and your network is strong.

Active executives stand out

Today's boards aren't just looking for prestige or past titles. They want directors who bring a real-time perspective and relevant leadership experience.

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.

Digital transformation, ESG (environmental, social and governance), cybersecurity, workforce strategy — these are dynamic, complex issues best understood by those still leading through them.

That means actively serving executives have a clear edge. Even without prior board experience, candidates who understand today's challenges and can articulate their value are well-positioned to stand out.

According to Spencer Stuart's S&P 500 New Director and Diversity Snapshot, about one-third (34%) of the class of 2024 are first-time directors — and 67% of them are still actively employed.

The message is clear: Boards are increasingly open to fresh perspectives from leaders who are in the trenches today, not just those who have stepped away.

If you wait until after retirement, you risk losing relevance. Boards often prefer candidates who are still engaged in the business world. Starting early, ideally two years before transitioning, keeps your momentum strong and your options open.

Preparation takes time

Here's where many leaders stumble: they assume board work will fall into place once they retire. In reality, finding a board seat takes time, often 12 to 18 months.

Differentiating yourself as a strong board candidate is more than updating a résumé. It includes refining your narrative, creating tailored materials and cultivating the right relationships.

Crafting a compelling professional narrative is a foundational step in preparing for board service, and it takes time. It becomes the foundation for your board bio, LinkedIn profile and even networking conversations, making it easier for others to advocate for you.

In a competitive landscape, your ability to articulate your value to a board with confidence and clarity can make all the difference.

Value for you and your company

Board service isn't just beneficial for the individual. It delivers real value back to the executive's organization. Serving on an external board sharpens strategic thinking, expands business perspective, and introduces new ideas and frameworks.

It can also raise your company's profile and strengthen its employer brand.

Looking for expert tips to grow and preserve your wealth? Sign up for Building Wealth, our free, twice-weekly newsletter.

Executives who serve on boards often return with fresh energy, broader insight, and greater loyalty to their teams and mission. It's a win-win for both the leader and the organization.

Growth at the top

By the time you've reached the executive ranks, development looks different and career movement slows down. You're not learning the basics; you're navigating complexity, driving transformation and mentoring others.

Board service can provide unique exposure and development. It challenges you in new ways, connects you with high-caliber peers and offers a broader lens on business. For leaders who want to keep growing, it's a smart and satisfying evolution.

A strategic bridge to what's next

Beyond growth, board roles create a natural bridge to your next chapter. Whether you envision a phased retirement, portfolio career or consulting work, having board experience already in motion opens doors.

And while no one can predict what their "next" will look like, starting early gives you the most control over how and when you shape it.

The case for now, not later

The most effective time to pursue board opportunities is before you step away from full-time leadership. Serving while you're still active brings immediate value: Sharper strategy, expanded influence and renewed purpose.

For many, it becomes a fulfilling second act that doesn't require stepping back — it means stepping forward in a new direction.

The bottom line? Board readiness isn't something to save for retirement. It's a strategic career move that's most powerful when you're still at the top of your game.

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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.

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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The unemployment rate in July was 4.2%, per the Bureau of Labor Statistics, and it's been fairly consistent, hovering in the 4% to 4.2% range since May of 2024.

That doesn’t mean the job market is strong, though. As CNN reported in July, the number of recurring unemployment claims rose to its highest level since November 2021. Put another way, it hasn't been this hard to find a job in almost four years.

While the labor market might seem uninviting to job seekers on the whole, it can be especially difficult for workers 50 and older to find work after a layoff. A January 2025 AARP survey of Americans 50 and older finds that 74% think their age could be a barrier to getting a job offer.

If you got laid off at 52 with $620,000 in savings, you might be in a tough position if the only job opportunities you’re finding now are lower-paying roles.

While a $620,000 nest egg isn’t chump change — it’s more than five times the median $115,000 retirement savings balance among those ages 45 to 54 as reported by the Federal Reserve.

Moreover, it also might not be a sum you’re comfortable retiring on. Taking a lower-paying job could not only be demoralizing, but also impact your long-term financial plans.

That said, such a situation is far from hopeless. You might need to be a little flexible and open-minded to come out of it unscathed.

Don't write off the idea of being rehired

If you’re struggling to find a role that’s comparable with your most recent one in today’s job market, it might not be a matter of age discrimination so much as a lack of available opportunities. However, Kyle Elliott, a tech career coach and mental health expert, acknowledges that being age 50 and older might lead to some challenges.

“Truthfully, those in their early 50s are going to have a bit more of a difficult time navigating the job search. Age discrimination is both real and rampant,” he says.

However, Elliott says, that doesn’t mean it’s impossible to land a job. It just means you might need to approach your search more strategically.

“If you're worried about age discrimination, use LinkedIn to research current employees in similar roles at the company. You'll get a sense of the company, culture and vibe,” he says.

“If you notice that the entire team is in their early 20s, it might be a sign that they tend to only hire people who look like them. If it's a more diverse team, you likely stand a better chance of landing a role.”

Elliott also says that many companies do seek out experienced professionals.

“As the applicant, it's your job to show you’re just as agile and hardworking as anyone younger. You can do this by pursuing courses and taking on special projects; then feature these achievements on your résumé and LinkedIn profile and mention them confidently in your interview.”

Consider a low-paying job temporarily

If your attempts to find a job you’re happy with aren’t fruitful, and you’re reaching the point where you risk dipping into your savings, it might be time to pivot and approach your job search differently, says Elliott.

“Accepting a temporary lower-paying job isn’t a career death sentence,” he says. “While easier said than done, try not to be too hard on yourself if you take a role that pays less. At the end of the day, you must look out for yourself, and that includes meeting your financial needs.”

If you decide to take a lower-paying job, Elliott says, then you might want to pause your job search temporarily to get settled and give yourself a bit of a reset. But there could be a benefit to taking a lower-paying job for a period of time.

“If the role isn't too intense, it might even allow you to search for what's next while also taking home a paycheck and continuing to contribute to your retirement,” Elliott says.

Try to avoid tapping your savings

If you’re 52, you might not be looking to retire for another decade or longer. Even if you’re forced into a lower-paying role on a long-term basis that makes it difficult to add to your retirement savings, a $620,000 nest egg invested at an annual 7% return, which is a few notches below the stock market’s average, could double over a 10-year period.

The key is to try to avoid dipping into your existing retirement savings. Doing that might require some changes on your part.

It could, for example, mean cutting spending or downsize to a smaller home sooner than you’d like. It could also mean supplementing your wages with gig work.

It’s important to do your best to preserve your nest egg so it can continue generating growth. Making sacrifices during the tail end of your career could open the door to more flexibility once retirement arrives.

Read More

• I Got Laid Off at 59 with an $800,000 401(k). What Are My Options?
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• The Five Best Side Hustles for Retirees

Whether driven by rising living costs, a need for social engagement or just plain boredom, retirees are launching side hustles and finding new purpose, a trend that shows no signs of slowing down.

Roughly 13% of retired seniors ages 65 to 85 plan to return to work this year, according to a 2024 survey from ResumeBuilder.com, with 4% stating they are "very likely" to do so, and 9% indicating they are "somewhat likely."

And 20% of retirees are already working either part-time or full-time, according to a recent T. Rowe Price report called “Unretiring: Why recent retirees want to go back to work."

Thinking about a side hustle? The right tools and apps can make all the difference. Dive into the essential starter kit to launch your unretirement journey today.

Seven must-have tools and apps to kickstart your retirement side gig

Starting a side hustle in retirement doesn’t mean learning complex systems or spending your hard-earned cash on expensive setups. With the right tools and apps, you can leverage your skills and manage your time — all while keeping things simple and stress-free.

Nic Adams, co-founder and CEO at Orcus, makes a good point. “Some individuals overlook that older adults often feel intimidated by technology or overwhelmed by too many options. That’s why it's important to focus on using just one or two tools.

Additionally, outdated software poses a challenge, causing issues such as privacy and security risks, as well as reduced productivity. Keeping firewalls, antivirus software and similar tools updated can help alleviate seniors' concerns.”

Here are a few of the many tools and apps to get your retirement side hustle up and running.

1. Todoist

Before you start, it’s time to set some goals and get organized. Todoist can help. It’s a digital to-do list that can help manage your day to squeeze in an hour at the gym, power through your side hustle and still have time for yourself.

Cost: Todoist offers three pricing tiers: The Beginner plan is free, the Pro plan is $4 per month, and the Business plan is $6 per month (billed annually).

2. Upwork, Fiverr, Freelancer

You have decades of expertise and practical knowledge, so turn your expertise into income using platforms such as Upwork, Fiverr and Freelancer (to name a few). After creating a profile, you’ll get connected with clients seeking your specific skill sets, such as consulting, writing, virtual assistance or tutoring.

Cost: These sites are free to join. Upwork charges a 10% service fee per project, while Fiverr takes 20% per gig, and Freelancer takes 10% of your total earnings.

Word of warning: Some listed jobs might be scams, so if a job is too good to be true, it probably is. Also, never pay anything up front, and double-check to ensure the company is legitimate by visiting its website and searching for reviews.

3. Rover and Wag

There are currently 63 million households that own a dog. Over the five years from 2019 to 2024, the number of independent and app-based dog walkers reached 1.8 million.

If you love animals and need an excuse to get outside and socialize, websites such as Rover and Wag are great places to start. You can set your availability, choose services such as dog walking or overnight pet sitting, and work in your local area.

Cost: It’s free to sign up, but Rover takes a 20% commission, and Wag takes 40%. Earn $100 to $200 per week, depending on your location and the number of hours you work.

4. Etsy and Shopify

Admit it. You’re pretty creative. The most popular places to sell your handmade or digital products, such as crafts, jewelry, knitting or writing, are on Etsy and Shopify (although there are others).

Etsy (both the app and website) is ideal for selling unique items, while Shopify allows you to create a personalized online store for a broader range of products.

Just to get an idea of your selling potential: 95.5 million active buyers shopped on Etsy in 2024. Both platforms are beginner-friendly, offering templates to set up your shop quickly.

Cost: Etsy charges 20 cents per listing and a 6.5% transaction fee. Shopify’s basic plan starts at $29/month. Start-up costs are minimal for digital products or items you already own.

5. Wyzant and Italki

Unfortunately, fewer than one in six American students receive tutoring of any kind, and fewer than one in 50 receive high-quality tutoring, according to Consumer Affairs. Fortunately, that means there is a need for experts like you.

If you have teaching experience or specialized knowledge, you can tutor students online via Wyzant or Italki. These platforms enable you to set your rates and schedule, making them ideal for retirees seeking flexible home-based work.

Cost: Free to join. Wyzant takes 25% of your first $3,000 earned annually, then 20%. Italki takes 15% per lesson.

6. TaskRabbit

Are you the handyman or woman who gets the call in the middle of the afternoon when your neighbor's pipe breaks, a bookshelf needs to be assembled or a close friend needs help cleaning their home? Put your brawn and mojo to the task with TaskRabbit.

Cost: You set your rates, which vary widely by task, location and experience. For example, in Atlanta in April 2025, cleaning rates ranged from $23.74 to $103.24 per hour.

Taskers (that’s you) pay a $25 registration fee and earn an average of $47 per hour, and you get to keep 100% of your hourly earnings, as well as 100% of any client tips.

7. DoorDash, Instacart, Uber & Lyft, Uber Eats

If you like to drive and meet people, then driving for DoorDash, Instacart, Uber Eats, Uber or Lyft might be the side gig you’re looking for.

Although each is a bit different — you might shop for and deliver groceries, or take someone to the airport — no prior experience is necessary, your schedule is flexible, and each opportunity offers low start-up costs (just a smartphone and a vehicle).

Cost: You get paid for completing a task. Many divers also receive tips, which are 100% yours to keep.

Lyft takes a 20% commission fee, and Uber takes 20% to 25% of each fare. Uber Eats pays $3 to $15 per delivery, DoorDash pays between $2 to $10-plus per delivery and Instacart charges no fees. You pay for gas and the wear and tear on your vehicle.

Tips for success

• Start small: Choose one service or product to avoid overwhelming yourself. Remember, you’re retired.
• Protect your benefits: If you're under full retirement age, keep your earnings below $23,400 per year to avoid Social Security reductions.
• Leverage your experience: Highlight your decades of expertise in your profiles or marketing to build trust with clients.
• Stay safe: Avoid scams by sticking to reputable platforms, such as those listed above. Never share personal financial details with unverified clients.
• Enjoy the journey: Pick a side hustle that aligns with your passions, whether it’s pets, teaching, driving or crafting. The goal of a side gig is to stay active, engaged and financially secure while having fun.

A side hustle can keep you happy in retirement

“The key to thriving in a side hustle is choosing tools that feel approachable and build your confidence," said Christina Muller, LCSW, Licensed Workplace Mental Health Expert and Strategist at R3 Continuum.

"That sense of momentum taps into something deeper: Our human need for purpose and alignment," she said. "When you feel productive, you're far more likely to be productive.”

Grab your laptop, pick a platform, and start building your unretirement adventure today.

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According to the Pew Research Center, while 66.9% of people aged 65 to 74 have left the workforce, only 17.1% 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 beyond money for a few key reasons. 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; trading 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 2025 Planning & Progress Study put the magic number to retire comfortably at $1.26 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 the most recent data from the Federal Reserve’s Survey of Consumer Finances, the average retirement savings for Americans aged 65 to 74 in 2023 was approximately $609,230, with a median of $200,000. For 2025, Empower estimates the figure to be around $1,148,441, while the median is approximately $539,068. These figures include balances from retirement accounts like 401(k)s and IRAs.

You too can reap the best of both worlds

Even with ample retirement savings — say, well above the current average of $1,148,441 for Americans aged 65-74 — many choose to continue working for reasons beyond money. The good news is, 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. A ​​2023 study by the American Psychological Association showed that 20% of retirees struggle with purpose. 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. In 2024, 37.3% of people aged 55 and above were employed, 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.

Last word

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.

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Then, one day, like thousands of others, you receive an email: Your job is being eliminated. "Stay tuned for a webinar," it says. "More details to come."

Or maybe you're 68. You've built a career that's not just successful but deeply fulfilling — so much so that you envision working until 73. You are well-compensated and appreciated for your leadership and institutional knowledge, and you're planning events six months out.

Then, without warning, new management decides to go in a "different direction."
Just like that, retirement comes to you — before you're ready.

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.

Why this happens more than you think

According to the 24th Annual Transamerica Retirement Survey, more than half of retirees leave the workforce earlier than planned, often for reasons beyond their control. Health issues, corporate restructuring, budget cuts or AI-driven job shifts are common triggers.

We've seen this firsthand. One client — a high-earning executive in his late 50s — was suddenly let go.

Faced with an unexpected job loss and assuming he wasn't returning to work, his personal financial analysis revealed a stark reality: To sustain his current lifestyle, his investments would need to consistently earn 10% annually.

I advised him that this was an unrealistic and risky assumption, which is why, as his adviser, I worked with him to adjust return expectations to more realistic and achievable targets.

Forced retirement has a way of revealing the cracks even in seemingly solid plans.

When you don't have a plan

When retirement arrives unexpectedly, the greatest anxiety often comes from not knowing where your next paycheck will come from. Many quickly realize that 401(k)s and IRAs are not income plans — they're just investment accounts.

Without a strategy to convert those savings into monthly income (e.g., lifetime income annuities or tailored income portfolios), fear sets in fast.

According to Allianz Life's 2024 Retirement Study, more than half of Americans have no retirement plan. And when there's no plan, knee-jerk decisions can follow:

• Claiming Social Security too early
• Becoming too conservative with investments
• Ignoring tax strategy and increasing withdrawal costs

Without a road map, people don't just lose income — they lose confidence. But it's never too late to pause, reassess and take action.

Building a new bridge to retirement and identity

If you're facing unexpected retirement, the steps you take next can shape your future — financially and emotionally. Key actions to consider:

Create short-term income. Look into consulting, freelancing or gig work. If needed, draw from taxable accounts first to preserve tax-deferred growth.

Revisit your withdrawal strategy. Understand which accounts to tap and the tax implications of each.

Looking for expert tips to grow and preserve your wealth? Sign up for Building Wealth, our free, twice-weekly newsletter.

Secure health coverage. Explore COBRA, Affordable Care Act (ACA) marketplace options or early Medicare (if you're eligible, such as due to disability).

Seek professional guidance. A retirement-focused adviser can help you adjust income, manage taxes, and chart a new path.

Reframe your identity and purpose. One client found fulfillment tutoring high school students, a role that brought both structure and joy.

Taking intentional steps can restore stability and open the door to new possibilities.

Emotional fallout and how to cope

If retirement comes sooner than you planned, that doesn't mean you've lost control of what happens next.

The transition can stir up a mix of emotions — grief, shock, resentment, even relief. Each is valid. This isn't just the loss of a paycheck — it can feel like the loss of identity, structure and community.

Here's how to process those emotions and begin reclaiming your sense of purpose:

Redefine your identity beyond work. Who are you outside your job title? A mentor, a parent, a volunteer, an artist? Retirement can be a powerful chapter of self-discovery.

Reframe the narrative. You weren't discarded — you were redirected. For some, this becomes an unexpected gift of time or renewal.

Stay connected. Join a local group, volunteer or take a class. Social engagement can lift your spirits and prevent isolation.

Create a rhythm. A simple routine — morning walks, dedicated hobby time, regular calls with loved ones — can add structure and stability.

You didn't choose this retirement, but you still get to choose what comes next. This chapter, though unplanned, can be filled with meaning and joy.

When you have a plan

When you begin planning five to 10 years before retirement, you're not just prepared — you're empowered. You're better positioned emotionally and financially to respond if life accelerates your timeline. With a thoughtful strategy, you can pivot instead of panic.

Effective retirement planning includes:

• Understanding your current and future expenses
• Visualizing how you'll spend your time — travel, hobbies, part-time work, caregiving
• Mapping out income sources: Social Security, pensions, annuities, withdrawals
• Using software to model scenarios: What if I retire early? What if taxes rise? What if I need long-term care?

When you have a plan, you're not starting from scratch — you're adjusting with confidence and clarity.

Caprice Torrisi, a licensed insurance professional at Vitality Investments, contributed to this report.

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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.

As of May 2025, the U.S. Bureau of Labor Statistics (BLS) reported approximately 7.8 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 they are itching to get back into the game.

The BLS also reports that among 55- to 64-year-olds, an impressive 66.8% are still active in the workforce. 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.

And although it is illegal for employers to discriminate against applicants due to their age, thanks to the U.S. Equal Employment Opportunity Commission, that doesn’t make it any easier for someone in their 50s or 60s to get a job.

Here is a look at six 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. Remove graduation dates but include your achievements and tailor your resume to the position you’re seeking. Mention earlier achievements or positions when appropriate, but 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. Leverage your network

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

Elliott also admits that, as a more experienced worker, you've had more time to develop your professional network than someone earlier in their career. “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 the culture, and see how they might benefit from your background and skills.”

3. 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 counter stereotypes. 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 said. He added that it is best to demonstrate you’re adaptable and committed to continuous learning.

4. 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 and explain why you want the position. It can also be used to address a hiring manager’s concerns about your potential over-qualification. Focus on why you’re a good fit for the role.

5. Prepare for interviews

Interviews can be tricky, as hiring managers sometimes prefer to conduct them in person or online through platforms, which often 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 a 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, got the T-shirt,’ show it, but only if it’s relevant to the role today. Skip the war stories from 1997 and highlight how your recent wins align with their needs.”

6. Explore flexible roles

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

Why people age 50 and over are returning to work

More older adults are returning to work, with 37.5% of those 55+ employed in 2024. 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. According to a 2024 CNBC and SurveyMonkey poll, more than half of respondents say they are behind on their retirement savings. 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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The Kiplinger Letter has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.

Congress just passed the biggest higher education policy update in two decades. The Republicans’ recent tax and spending law includes new caps on federal loans, new repayment plans and a sweeping accountability system. With most rules set to take effect next July, the Education Department and colleges need to act fast.

To try to lower college prices and student debt, an overhaul of federal student loans is coming. Federal student debt stands at $1.7 trillion, affecting about 43 million borrowers. Half of the debt comes from graduate loans, a big target of the law. Under the new policy, graduate students and parents of undergrads face new caps on yearly and total borrowing. (Limits on loans made directly to undergrads are unchanged.) A simplified loan repayment plan is on tap, which will reap about $270 billion in federal savings over a decade. Two repayment plans, a standard one with fixed payments and a new income-driven plan, spell higher monthly payments for many borrowers.

The new accountability system marks a huge shift. Schools will lose access to federal lending if graduates don’t earn more than nonattendees in the state. Advocates of the system say the goal is to push high-cost programs to reduce their prices. Undergrads will be measured against those with high school diplomas. Grad programs get measured against similarly situated adults without a graduate degree. 20% or more of associate degrees fail this test, per an analysis by Preston Cooper, senior fellow at the American Enterprise Institute. That failure rate comes with a caveat: “Students in these programs are less likely to use loans to begin with,” writes Cooper. “Many will be able to continue operating even if they lose loan access.” Around 8% of all master’s degree programs fail the test (the failure rate is higher for master’s degrees at for-profits). But just 3% of bachelor’s degrees fail.

Among the other policy changes: A bigger endowment tax on wealthy schools of up to 8%, up from today’s top rate of 1.4%. Small colleges with fewer than 3,000 students are exempt, however. And Pell Grants are now available for very short work programs of eight to 15 weeks, a big win for community colleges. Pells also received an extra $10.5 billion in funding.

Schools are racing to adapt and alert students about financial aid changes, though much uncertainty remains. Revenue could take a hit if fewer students enroll, especially at schools that rely heavily on grad programs. Some programs will shrink or be cut, as schools at least consider lowering tuition in some cases.

Expect more business for private lenders, such as College Ave, SoFi, Sallie Mae and Ascent. For example, 40% of medical students borrow more than the law’s annual loan limit. Private loans make up 8% of overall student debt and that figure is sure to increase.

Delays are likely as the Education Department faces implementation struggles. The agency has cut half of its workforce so far and has a lengthy, complex to-do list with tight deadlines. Passing the bill is “just the tip of the iceberg,” says Sarah Sattelmeyer, an education policy analyst at New America. “An incredible amount of work is coming at the Education Department.” This includes issuing reams of rules and guidance about loans, starting the new accountability system, policing lending violations and much more.

Meanwhile, the Trump administration will continue to pressure institutions to change policies, including by withholding current or future federal research funds. Expect more investigations of antisemitism, diversity, foreign students and other issues.

All this change comes as schools face other financial headwinds. A sharp decline in foreign enrollment looms ahead. There’s a homegrown demographic challenge, as the college-age population shrinks in the coming years. Higher costs of everything from construction to insurance are stressing budgets. These trends, and the new policies, mean more schools will mull budget cuts, while also considering sharing resources with other schools or even mergers.

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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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The work pivot is mainly down to a familiar problem — retirees are afraid of running out of money, with the issue so pervasive that 64% worry more about running out of cash than dying, according to a recent Allianz Life study. Add to the mix longer life spans, fewer company pensions, rising doubts over the future of Social Security, and a half-decade run of high inflation, and it’s no wonder that so many retirees are returning to the workforce, in some form.

According to a new Northwestern Mutual study, 40% of U.S. adults plan to work — or are already working — in retirement. That figure rises to 45% for millennials and 48% for Gen Xers, with the Baby Boomers marking the last U.S. generation demographic where most retirees say they won’t work in retirement.

Aside from financial reasons, more retirees say they’re returning to work to stay active and keep their mental skills sharp during retirement. And as longevity increases, that could be a lot longer than expected.

"I’ve found most retirees enjoy the time off from work for about two to three years, but then they start missing the routine, the friendships at work, and they often struggle to find their new purpose," said George McFarlane, president of 7 Waters Advisors in Longview, Texas. "I had a mentor tell me that he didn't retire, he retreaded. He said, 'I would rather wear out than rust out.'"

While many retirees seek jobs that emulate, or at least are tied to, their career years, seniors also look for jobs and gigs that offer a departure from their paycheck years.

"Retirees working in retirement find it a fulfilling way to scratch a creative itch they didn’t have the opportunity to indulge in during traditional employment," said Diana Kelly Levey, a Long Island, NY-based freelance writing business owner.

"Having a side hustle in retirement can also help supplement income, allow someone to pursue a dream (like seeing their name on a published article), sell something they've crafted or created, give structure to their days, foster a sense of purpose, and help one feel part of a community," she said.

Given the advanced age that may limit physical work or jobs requiring long commutes, some retirement side gigs are more suitable than others for retirees. The following gigs should be at the top of the list.

1. Plant a flag in the real estate market

You know the old saying: "Buy land because God isn’t making any more of it." So it goes for retirees with a penchant for sales, management and a side hustle.

"Getting involved in real estate in some way can be a great side gig for retirees," said Adam Hamilton, CEO at REI Hub in Richmond, Virginia. "There are a variety of different ways to do it, ranging from simply investing in REITs, to flipping homes, to buying properties and converting them into rentals, to turning a portion of your home into a short-term rental."

In real estate, you can be as hands-off as you want (for example, you could hire a property manager to take care of all of the logistics and day-to-day work), or you can treat it as a 'job' and be very hands-on. "Regardless, real estate investing can be a great way to earn a reliable stream of income, and it can give you a project to focus on in retirement," Hamilton said.

2. Get into content creation

Allen J. Wiener, a historian and author of the book David Crockett in Texas: His Search for New Land, said he decided to keep rolling as a writer in retirement, if at a slower pace.

"For years, I had been writing outside of my day job, which I enjoyed, but I couldn't make a living at it," the Florida-based retiree noted. "Once I retired, my days were free to do research, visit libraries, do phone interviews with people, and write during my most productive hours, rather than trying to do it at night when I was tired from working all day and taking care of household responsibilities."

Wiener said he continues to view publishing books and articles as very rewarding.

"It doesn’t pay much, but I am still interviewed about my work and quoted in the media," Wiener said. "Writing at my own pace also leaves my time flexible for other pursuits, such as travel."

Retirees don’t need to step too far outside their career specialties as a writer/content producer. Stepping into a content role as a newsletter publisher on a platform like Substack or as a product expert could be easier than you may think.

"As a writer, you can share expertise through weekly posts about gardening, investing, or industry insights," said Carrie Loranger, founder of Click Digital Publishing, in Mission Viejo, California. The earning potential for doing so ranges from $200 to $2,000 a month, Loranger said.

3. Be a business organizer

If you want to work from home part-time, say 10 to 20 hours a week, there’s a significant demand for office workers.

"Some digitally-savvy, organized retirees might find it rewarding to take on virtual assistant work, while some would like data entry or bookkeeping," said Kelly Levey. She noted that in these kinds of gigs, it's important to be clear about hours and expectations.

"But if you’re someone who prefers in-person work as a reason to get out of the home and need face-to-face interaction, you might be open to doing tutoring, working at a fitness center reception desk, walking a neighbor’s dog, or working at a community center."

4. Leverage your home maintenance and repair skills

Daniel Rushford, a Los Angeles, California, resident, is utilizing his fix-it skills for Airtasker, a task management platform that connects customers with skilled local helpers.

"Working in retirement through Airtasker has been completely different from when I was working full-time," Rushord said. "I choose my own tasks, set my schedule, and get to work with people in my community," Rushford said. He’s handled everything from furniture assembly to repairs and delivery tasks. "It keeps my mind sharp and gives me purpose without the stress of working full-time."

Task-mastering is perfect because Rushford can leverage skills he’s built over decades, whether it's handyman work, moving help, or organizing tasks, all while working entirely on his terms. "The beauty is that retirees often have time flexibility that younger workers don't, so we can take on those weekday tasks that others can't fit into their typical workday," he said.

5. Be an online expert

Retirees with solid institutional knowledge can sign up on a site like JustAnswer and make good money from the comfort of their own home.

Andy Kurtzig, founder and CEO of Just Answer, said: "Experts on JustAnswer.com who are verified and vetted and licensed in their profession or trade — from vets, accountants and lawyers, to dog trainers, RV mechanics and appliance repair techs — can make from $2,000 to $7,000 a month depending on the category and question volume. You can do the work anytime from anywhere, answering people’s questions from around the world."

Kurtzig cited one platform expert, a former therapist and longtime etiquette trainer, who’s also an expert in exotic bird health and behavior. "She uses the $1,500-to-$2,000 per-month income she generates through answering questions related to etiquette and avian health to fund her nonprofit sanctuary for exotic birds," Kutzig said.

He also points to a retired 62-year-old general contractor and home improvement expert on JustAnswer. "After retiring from his family business and having his children take over, he wanted a way to earn extra money while also still using his vast knowledge from his experience as a contractor/plumber/home builder/electrician," Kurtzig said. "So far this year, he’s earned over $27,000 working a couple of hours a day."

Should you set a work limit each week?

Retirees who work part-time in retirement say that laying down time guidelines is highly advisable.

"Even if you're working for yourself, set some limits on the time you spend working or volunteering," Weiner said. "Maintaining structure is important. There’s an excellent mental benefit to knowing you can occasionally relax, read a book, watch a movie during the day, or simply enjoy a happy hour beer with friends."

"As one doctor recently told me, it is good to pay attention to healthy habits, including finding productive activities, but you also need to live your life," he said.

Retirees also shouldn’t focus on how much they are working from an hourly standpoint; focus first from a financial perspective.

"Unless you feel like the side hustle or part-time job is impacting your life negatively and your health is deteriorating from it, retirement is about whatever you want it to be," Levey said. "It’s about checking in with yourself — and maybe loved ones from time to time — to explore if the side hustle is going well or if it’s interfering with the goals you initially had for retirement."

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The short answer? Absolutely.

529 plans remain the gold standard for education savings — particularly for high-net-worth families who value tax efficiency, flexibility and long-term planning.

But like all financial tools, 529s work best when they're part of a broader, multilayered strategy tailored to your family's unique goals.

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.

Here's why these plans are so powerful — and when you might consider complementing them with other approaches.

Why 529 plans still reign supreme

What makes 529 plans so effective is simple: tax-free growth and tax-free withdrawals for qualified education expenses. No other investment vehicle offers this combination of benefits specifically for education savings.

But the advantages go even deeper for affluent families:

Estate planning leverage. Contributions are considered completed gifts and are removed from your taxable estate — ideal for grandparents who want to reduce estate size while supporting future generations.

Front-loading flexibility. In states that offer a tax deduction for 529 contributions, front-loading five years' worth of gifts can provide a meaningful tax benefit.

It also gives the assets more time to grow tax-free, maximizing the long-term impact of your contributions.

Financial aid optimization. Compared with taxable brokerage accounts, 529 plans are typically treated more favorably in the financial aid process.

When a grandparent owns a 529, the account is not reported on the FAFSA, which can improve a student's eligibility for need-based aid.

More uses than you might think. Funds can be used for K-12 tuition (up to $10,000/year per student), and unused funds can be rolled over to a Roth IRA for the beneficiary — up to $35,000 over five years under the SECURE 2.0 Act's rules.

There are many stipulations that come with these transfers for them to be compliant, but this is a great way to utilize overfunding.

Portability. A common myth is that you must use the 529 in your state. Not true — plans are portable across states and schools, though tax benefits vary by state.

When you might want more than a 529

While 529 plans should serve as the cornerstone of your education savings strategy, they might not be the only tool you need — especially if you're planning for multiple children or grandchildren, navigating uncertain educational paths or seeking greater control of how and when funds are used.

In these situations, a blended approach can offer valuable flexibility. We often recommend funding 50% to 75% of the expected education cost into a 529, with the remaining balance placed in a taxable brokerage account.

This allows families to benefit from the tax-free growth and estate planning advantages of the 529 while preserving access to funds for nonqualified expenses or alternative education plans — such as study abroad, gap years or post-grad programs.

However, it's important to keep in mind that they could trigger capital gains taxes when funds are withdrawn.

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To further support your goals, the following is a range of other complementary tools that you might consider:

• UGMA/UTMA custodial accounts. Useful for continuing family gifting beyond 529 limits, these accounts eventually transfer control to the beneficiary — typically at age 18 or 21, so they might not be appropriate in every situation.
• Education trusts. For families with complex legacy goals or special needs considerations, trusts provide added control, oversight and structure to ensure funds are used as intended.
• Direct tuition payments. Grandparents can pay a school directly without triggering gift tax limits. This strategy can both reduce their taxable estate and make an immediate, meaningful impact.

Together, these tools help create a more adaptable education funding plan — one that supports your child's or grandchild's ambitions without sacrificing financial control or long-term tax efficiency.

Education planning as a legacy tool

For many affluent families, education planning is about far more than paying tuition — it's about creating a lasting legacy.

A well-structured 529 strategy allows families to pass on wealth with intention, aligning financial gifts with deeply held values such as opportunity, education and self-sufficiency.

Annual contributions to 529 plans serve a dual purpose: They fund a meaningful cause while efficiently moving appreciating assets out of the donor's taxable estate.

For grandparents in particular, this is an opportunity to witness the impact of their wealth during their lifetime — something many of our clients find far more rewarding than a posthumous transfer.

Grandparents can contribute annually to multiple 529 plans — one for each grandchild — as part of a broader multigenerational giving strategy.

This not only spreads wealth in a tax-efficient way but also sets the tone for how future generations view education, financial planning and the family's broader legacy.

By taking advantage of front-loading provisions, donors can superfund each account with up to five years' worth of gifts at once, jump-starting tax-free growth and giving those assets more time to compound.

When paired with other estate planning tools — such as trusts, gifting strategies or direct tuition payments — 529 plans become a cornerstone of an integrated approach to legacy planning.

Best practices for maximizing your 529 plan

If you're ready to build or refine your education funding strategy for your family and loved ones, consider these tips:

Choose low-cost, state-run plans over higher-cost adviser-sold options. State-sponsored plans often come with lower fees, which means more of your money stays invested for growth. Be sure to compare expense ratios and long-term performance.

Research state-specific benefits. Some states offer added perks — such as Pennsylvania's SAGE Scholars program, which provides tuition discounts at participating schools — that can enhance the value of your contributions.

Avoid overfunding. Contribute what fits comfortably within your budget. Prioritize your retirement savings first, then allocate additional funds toward education as your financial picture allows.

Review your plan annually. Your child's needs and your financial goals can shift. Revisit your 529 plan regularly to adjust contributions, update beneficiaries and ensure your investment strategy is still aligned.

Ask smart questions. Talk with your adviser about plan costs, tax implications, financial aid considerations and backup strategies for unused funds. A well-informed plan is a more resilient one.

Ultimately, education planning is more than a financial strategy — it's a structured, purpose-driven way to transfer wealth that reflects your values and strengthens your family's future.

A well-structured 529 plan offers meaningful advantages, but the most effective approach often blends it with other tools tailored to your unique goals.

Done thoughtfully, education planning becomes a powerful way to stay connected to the lives and aspirations of your children and grandchildren — building not just financial security, but a lasting legacy of opportunity.

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• Best 529 Plans of 2025
• 529 Plans: A Powerful Way to Tackle Rising Education Costs
• Going to College? How to Navigate the Financial Planning
• How to Budget for College Expenses Beyond Tuition

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.

From remote or hybrid work, to flexible schedules, side hustles and the new growing trend, micro-retirement, younger generations are embracing change, and it's Gen Z leading the charge.

Although the term might be unknown to some employers and employees, micro-retirement isn’t new. Academia has been taking sabbaticals or leaves for decades to study and for research.

Jillian Johnsrud, author of Retire Often, has written about mini-retirements for more than a decade, and some believe the term was popularized by Timothy Ferriss in his book "The 4-Hour Workweek" more than 15 years ago.

What are micro-retirements, and why are workers welcoming this growing trend with open arms?

Micro-retirements defined

Micro-retirement is about taking short, regular breaks from work, typically lasting a few weeks to a few months, usually to travel, work on a personal project or relax, 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?

Generation Z includes individuals ages 13 to 28. Although they're the furthest from retirement, this age group has begun to normalize a heavier focus on a good work-life balance. With that comes this new career trend.

As of 2025, millennials (born 1981–1996) make up the largest share of the workforce, accounting for 34% to 40% of workers. Gen X (born 1965-1980) follows with about 27% to 33%. Gen Z, (born 1997–2012) comprises about 18% to 20% of the workforce, and baby boomers (born 1946–1964) consist of around 7% to 12%.

The number of baby boomers in the workforce can fluctuate, however, 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.”

Are you financially secure enough to micro-retire?

The primary drawback of micro-retirement for many is the absence of a regular paycheck. In a recent study by Allianz, 61% of respondents said that they feel confident about meeting their savings goal for retirement.

That number has decreased every year since January 2020, when 83% said they felt confident. Only 61% feel confident specifically about meeting their savings goal for 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?

An increase in employees taking micro-retirements coincides with the lowest workplace engagement rate in a decade, according to Gallup.

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. Salary.com estimates that replacing an employee can cost a company half or as much as twice the employee's annual salary

Asking companies to adopt workplace changes might seem impractical, but it helps to remember that 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 hold onto 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, especially as younger workers have demonstrated they have no qualms with quitting and job hopping.

To prove that point, the average number of years that either wage or salary workers were with their employer was 3.9 years in January 2024 (PDF), down from 4.1 years in January 2022. That’s the lowest number since January 2002, according to the U.S. Bureau of Labor Statistics.

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, your job is almost always 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?

Essentially, the goal of the FIRE — Financial Independence, Retire Early — movement is to aggressively invest and save, often up to 75% of your income. That means if you play your cards right, it could be possible to retire early in your 30s or 40s.

The goal of micro-retirement is much the same, except it involves brief pauses from work, ultimately intending to return to the workforce.

“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, business as usual is anything but. Generally speaking, if you have a solid financial plan in place, that’s probably a good thing.

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Instead of piecing together a handful of part-time jobs around her school schedule, it's her first full-time job with a full-time commitment.

She's excited about the prospect of a steadier paycheck, as it opens the potential for long-term financial success, but she's also a bit nervous about some more serious adulting.

Perhaps you have a child, grandchild or someone you hold dear who is also just starting out. How can you help them transition to financial independence?

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.

I'd encourage recent graduates to focus on three areas: Developing an emergency savings fund, taking advantage of their employer's 401(k) match if they offer one and making disciplined, long-term investments.

No. 1: Develop an emergency savings fund

First things first — start by establishing an emergency savings fund. According to research from Vanguard, having just $2,000 in savings can provide a critical buffer, reducing the likelihood of financial stress and enhancing overall well-being.

This is especially important for those who are new to the workforce, as the financial stress associated with not having emergency savings can spill over into the workplace and impact productivity.

Workers without emergency savings are four times more likely to be distracted at work due to financial stress.

Vanguard's new consumer survey also found that 71% of Americans plan to shift their savings approach this summer to prioritize emergency savings and flexibility, especially in light of current market uncertainty.

With this in mind, it's important to create an emergency savings fund containing at least $2,000 or half a month's expenses, whichever is greater, and to put this money in a high-yielding savings vehicle, like Vanguard's Cash Plus Account, to help you earn stronger returns on your savings.

My daughter's spending account was earning practically zero interest, so she set up a high-yielding savings vehicle, with the account features she desired, to help her earn stronger returns to bolster her savings.

And remember, you don't have to get to your savings goal all at once. Young investors can start small by automating a portion of their paycheck, even $10 or $20, to a high-yielding savings vehicle to help build a savings buffer.

No. 2: Take advantage of your employer's 401(k) match

Retirement may be one of the furthest things from the mind of a young investor — it's a classic "important but not urgent" goal. But if an employer offers matching contributions, it's important to take advantage of them.

Many plans offer matching contributions of 50 cents on the dollar — or even dollar for dollar — up to a certain percentage of pay.

• The match is free money. Any matching contributions from your employer, and their associated earnings, usually become yours over time in a process called vesting
• The money you contribute to the plan is yours — and yours alone — from day one

Find out if your employer offers a matching contribution and make sure you're saving enough to receive the full benefits.

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There are long-term impacts of missing out on employer matches that can compound over time and lead to a significant gap in retirement savings compared to a colleague who took advantage of this match.

And if your employer offers a Roth 401(k) option, younger investors may want to consider choosing a Roth 401(k) over a 401(k) if you believe your current tax bracket will be lower now than when you retire.

No. 3: Make disciplined, long-term investments

The lines between gambling and investing are blurred like never before — and many brokerages are enticing their customers to trade more frequently.

That's why it's important to develop a disciplined approach to long-term investing. Vanguard has always prided itself on its four principles for investing success:

• Create clear, appropriate investment goals
• Keep a balanced, diversified mix of investments
• Minimize cost
• Maintain perspective and long-term discipline

All investors — especially young ones — can leverage these principles in their investing journey. And it's important to remember that all investing is subject to risk, including the possible loss of the money you invest.

Starting a new job brings with it great opportunities and responsibilities. By developing healthy habits now, young investors can set themselves up for long-term financial wellness and independence from the "Bank of Mom and Dad."

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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.

However, at its core, being a follower of Christ is about striving to live according to the principles of God's Kingdom — principles that are timeless, transformative and meant to shape every aspect of our lives, including business and finance.

Living as a Kingdom citizen means walking in the authority God has given us — an authority that extends to every area of our lives. As an entrepreneur and investor, I strive daily to align my decisions with the values of God's Kingdom.

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.

This means embracing integrity, generosity and a Kingdom-driven approach to wealth. It also means rejecting the extremes of prosperity gospel and scarcity mentality, instead seeking biblical wisdom on how to steward financial resources effectively.

Faith and finance

Money is a sensitive topic in Christian circles. It is a topic that has been misused and misrepresented in the Church. On one end of the spectrum, some preach that faith alone will bring financial abundance. On the other, some claim that true humility comes from poverty.

These conflicting messages leave many believers unsure of how to approach money in a way that aligns with their faith.

The truth is, wealth is neither inherently good nor evil — it is a tool. The Bible warns against the love of money, not money itself. It calls us to be wise stewards, multiplying what we've been given while using it to bless others.

Unfortunately, much of the Church focuses on extending grace for big sins but leaves little room for big blessings. We must shift the narrative.

Financial success, when rooted in biblical principles, can be a powerful vehicle for impact, allowing us to serve others more effectively and further the work of the Kingdom.

Applying biblical values in business

Integrity is the cornerstone of my business philosophy. As a successful entrepreneur in the real estate investment industry, I have seen many opportunities to make quick money at the expense of others.

I have turned down numerous deals that, while profitable to my company, would not

have been accretive to my investors. Choosing integrity over short-term gains has always proven to be the right decision — not only ethically but also financially. God honors businesses that operate with honesty and transparency.

Operating with biblical values in business also means being intentional about how we treat employees, partners and clients. Leadership is not about power; it's about service.

A faith-driven entrepreneur must be willing to make difficult decisions that prioritize long-term integrity over immediate profits. In the end, doing business God's way welcomes the biggest blessings.

Serving others first

A fundamental principle of God's Kingdom is putting others before ourselves. In my business, this translates to prioritizing the well-being of my clients over financial gain.

Unfortunately, in the investment world, many firms push products onto clients without considering their best interests. Some investors, particularly retirees, depend on their investments for financial security. If placed in unsuitable deals, their entire livelihood can be jeopardized.

At our firm, we take a different approach. If an investment is not the right fit for a client, we are willing to walk away rather than risk their financial well-being.

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This commitment to service may mean fewer transactions in the short term, but it builds long-term trust and credibility. When we serve with integrity, we create lasting relationships and a reputation that attracts the right opportunities.

Embracing generosity as a business strategy

Generosity is often seen as an act of charity, but in God's economy, it is a principle of multiplication. The world teaches us to accumulate, but the Bible teaches us to give. Counterintuitively, the more we give, the more we receive — not just financially, but in the fulfillment and impact we create.

My business is built on the belief that generosity is not just a personal virtue but a corporate strategy. This means ensuring that our success benefits not just shareholders but employees, clients and the communities we touch.

Generosity can take many forms — fair wages, philanthropy, mentorship and ethical decision-making that prioritizes people over profits. When generosity becomes part of a company's culture, it transforms the way we do business and the legacy we leave.

Kingdom-driven wealth

At the heart of biblical finance is a simple truth: Nothing we have is truly ours. Everything belongs to God, and we are merely stewards of His resources.

This mindset shifts the way we approach wealth. Instead of hoarding, we hold it with open hands. Instead of chasing success for selfish gain, we pursue it with the intent to bless others.

Purpose-driven wealth is about more than financial security — it's about impact. It's about using our resources to create opportunities, uplift communities and further God's work on earth.

When we align our businesses and finances with Kingdom principles, we experience a different kind of success — one that is both spiritually fulfilling and materially sustainable.

Business is about more than profits

At the end of the day, business is not just about profit margins and balance sheets. It is about purpose. As entrepreneurs, we have the unique opportunity to demonstrate what it means to be citizens of God's Kingdom in every aspect of our work.

We can lead with integrity, serve with humility, give with generosity and steward wealth with wisdom.

Faith and finance are not opposing forces — they are meant to work together. When we view our businesses as extensions of God's Kingdom, we redefine success. It is no longer about how much we accumulate but about how effectively we steward what we have been given.

In God's economy, true wealth is not measured by what we keep but by what we give and the impact we create.

If you'd like to learn more about Kingdom economics and discover the true meaning of prosperity, check out my new book, Money, Faith & The Kingdom: What I've Learned Since Starting My Podcast.

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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.

"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.

With the rapid rise of artificial intelligence, a sea change in cybersecurity is underway. As new threats emerge from generative AI adoption, AI-enabled security tools are also fortifying defenses.

AI’s rise has prompted higher spending on more advanced IT security. In 2025, security spending is set to grow by 12.5% in the U.S. versus last year, hitting $131 billion, according to technology market research firm IDC. Global growth will be similar, led by large companies, but even small businesses are spending more. The top spending sectors are finance, government, telecom and health care, looking to buy tools to secure cloud apps, manage digital identity and analyze cyber threats.

Attacks are worsening across the board, with an increase in speed, scale and sophistication. AI is supercharging phishing emails and voice clones through AI-created text and audio that often trick victims into sharing private info or clicking on malware. Ransomware is on the rise, too. Cyberthreats are growing across the globe. China’s cyber espionage, including targeted attacks, is surging. Iran is using AI to find security flaws to exploit and to spread misinformation online. That’s sure to increase. Russia, too, is using AI for attacks and digital propaganda.

Physical infrastructure remains a ripe target. This includes chemical plants, electric grids, dams, hospitals, transportation systems and nuclear plants. A recent example is China’s Salt Typhoon intrusion into U.S. telecom networks.

Employee use of AI, much of it unsanctioned, gives security pros heartburn. Start with the risk of divulging company secrets as workers share data with public AI chatbots, which may be insecure. Software from Palo Alto Networks and others tracks AI use in a network to protect data and block unapproved AI apps. Other AI threats include “prompt injection” attacks, when an AI chatbot is tricked to override built-in policies, giving access to unauthorized company data or systems. “Hallucinations,” which are inaccurate but true-sounding responses, also pose a security risk.

AI has big promise for improving cybersecurity software, but it brings risk, too. Some things AI can already do: Find security flaws in software and help patch them. Develop software that resists security flaws. Monitor threats, pinpoint real dangers and alert human cyber pros. AI security chatbots can give security staff detailed answers on threats or company policies to help them solve issues.

One of the most exciting developments is “AI agents” that can do security tasks autonomously. Built by companies such as Amazon, Microsoft, Google, CrowdStrike, OneTrust and Radiant Security, the tools can patch security flaws, thwart data breaches, track insider threats, simulate attacks and more. Another use for autonomous agents is issuing employee log-in credentials to a piece of software via email. A tedious task that is now done manually by IT staff.

But there’s fear that autonomous tools will make mistakes or go rogue. These AI agents need to be secure themselves, with clear guardrails and regular audits. “Behind this incredible era of agentic AI are intricate security considerations that organizations must prepare for today,” said Hammad Rajjoub, director of security at Microsoft, at a recent conference. There are already plans for deploying AI agents to guard other agents.

Despite the new AI threats, basic cybersecurity precautions still mitigate risks for businesses. Use strong usernames and passwords, plus another factor, such as a one-time PIN or fingerprint. Regularly update and patch software. Closely vet security vendors and new AI tools. Minimize data stored. Provide regular security training to staff. Prepare a security incident response plan and regularly test it.

This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.

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It’s one thing to be let go at 59 with a few million dollars in savings. But if you’re sitting on a 401(k) with an $800,000 balance, that may not be a large enough nest egg to support a fairly early retirement.

That said, a situation like this isn’t hopeless. And with the right strategy, you can make it work for you.

Pause, breathe ... and think about what you want

A recent survey by the Employee Benefit Research Institute found that about 40% of retirees left the workforce earlier than planned. If you’re laid off at 59, it could easily lead to an unexpectedly early retirement — but it doesn’t have to, says Evan Drury, ChFC and financial advisor at U.S. Financial Services LLC.

Drury has seen clients land in this situation before. And the first question he likes to ask is, "What do you want?"

It's one thing if the client wants to keep working full-time for another five years to maximize earnings and savings, he explains. It's a different matter if they're happy to transition into part-time or freelance work, which may be easier to find.

If you’d rather lock down another full-time job so you can save for a few more years, Drury says that rather than let your age be an impediment, you can use it to your advantage.

"You have a wealth of experience to compete with others in the marketplace," says Drury. If you network aggressively and maximize your skills, you never know what opportunities might present themselves.

On the other hand, you may find that a high-paying side hustle is a good solution for you — one that enables you to cover your expenses and leave your nest egg mostly untouched for a few more years, but perhaps spares you the frustration of trying to land a full-time job.

Drury had a client years ago who was laid off at 65 and couldn’t retire at that time. He encouraged her to find the best job she could, considering her desire for more free time and her financial needs. They landed on a hybrid retirement where she earned a part-time income and took small distributions from her portfolio.

“Retirement means many different things these days. Fully retiring isn't the only approach,” Drury insists.

Make the numbers work

Getting laid off late in life can be a shock, and you may need some time to recover emotionally. But one important thing to do, says Drury, is assess your financial situation so you know what you’re dealing with.

First, he says, review your cash flow based on your current expenses and available income. In the near term, that could be a combination of small portfolio withdrawals and unemployment benefits.

Next, consider trimming expenses and what that might look like. At 59, your home may be paid off, or close to it. If you’re able to downsize, you might walk away with a chunk of money you can invest and use for income. You might also lower your housing costs.

All told, says Drury, you need a sense of what your expenses will look like for the next bunch of years. That’s instrumental in helping you decide whether you can afford to work part-time (or not at all) versus needing a full-time job.

Unfortunately, at 59, you’re too young to get Social Security. And as Drury likes to remind people, while 62 is the earliest age to sign up for it, “your benefit is reduced significantly when compared to your full retirement age.” This means that for a good number of years, you may have to live on a combination of portfolio distributions and whatever income you bring in.

An $800,000 balance in a 401(k) will only yield $32,000 in annual income using the 4% rule. And it may not even be safe to use a 4% withdrawal rate at age 59, so that’s something to consider when deciding whether to pursue full-time versus part-time work.

This assumes, of course, that you can access your 401(k) penalty-free. You generally need to be 59½ for that to happen, though in a situation like this, the rule of 55 may apply, giving you earlier access to that money.

One final piece of the numbers puzzle is healthcare. At 59, you’re too young for Medicare, so you may have to shop for a plan you pay for yourself if you decide to pursue part-time work between now and age 65.

In the meantime, take care of your physical and mental health. Now is the time to adopt healthy aging habits, ideally keeping your healthcare costs to a minimum.

It pays to get help

A situation like this one is unquestionably tricky. If it happens to you, don’t hesitate to get help from different resources. That could mean talking to recruiters and career counselors for guidance and leaning on your social and professional network for support.

Drury also recommends talking through your options with a financial professional. A layoff at 59, he insists, is an opportunity to "make your wants a reality." However, you need a plan, and your finances must support it.

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Banking essentials

If your child doesn’t yet have a checking account, they may want to open one for receiving financial aid money, income from a part-time job, or other funds. Matt Schulz, chief credit analyst at LendingTree, recommends having your child establish an account at your bank so you can quickly and easily transfer funds to their account.

If they opt to open an account at a different institution, however, you can still send money to them. Many banks allow you to make fee-free transfers to checking accounts at other institutions, although the transfer may take a few days to process.

Alternatively, you could use a peer-to-peer transfer service. With Zelle, for example, you can instantly transfer funds directly between your checking accounts as long as at least one of your banks participates in the Zelle network, and transfers are typically fee-free. Other P2P services include Apple Cash, PayPal and Venmo. You can transfer money for free with these services, too. But the funds you send don’t go directly to the recipient’s bank account. Instead, they’re stored as a balance with the service. Moving money instantly from that balance to a bank account usually entails a fee; free transfers typically take up to three business days.

Wherever your child chooses to bank, he or she should look for an account that has no monthly fee and provides fee-free access to ATMs close to their campus. Some banks offer accounts with fee breaks for college students. Chase College Checking, for example, is for students ages 17 to 24 and charges no monthly fee. Chase has more than 15,000 ATMs and more than 4,700 branches across the U.S. Another good option is the Capital One 360 Checking account, which has no monthly fee or minimum-balance requirement and provides access to 70,000 ATMs fee-free.

Compare some of today's top savings rates and other banking products using the tool below, powered by Bankrate.

Building credit

If your child is ready to manage a credit card responsibly, using one in college can give them a head start on developing a positive credit history. Later on, a solid credit profile may help them successfully qualify to rent an apartment, for example, or take out a car loan or mortgage.

One option is to add your child as an authorized user on your credit card, which can help them build credit. As an authorized user, your child can make purchases and, depending on the card, they may gain access to your card’s perks, such as rental car insurance. If you take this route, keep in mind that you’re ultimately responsible for the card and that any missteps from the authorized user — say, racking up a big balance that’s close to your card’s limit — could hurt your credit score, too.

Alternatively, your child could apply for a student credit card with a low limit, which can prevent them from overspending, says Hillary Seiler, a senior certified credit counselor and CEO of the financial education program Financial Footwork. Capital One Savor Rewards for Students, for example, has no annual fee and offers 3% cash back on streaming-service subscriptions and at grocery stores and restaurants. However, interest rates on these cards can be high; the Capital One card, for example, recently charged as much as 29.24%. Your student may quickly face ballooning debt if they fail to pay off the balance every month.

Another possibility is a secured credit card, such as the Discover It Secured Card. With a secured card, you put down a deposit that is equal to the card’s credit line. For example, with a $300 deposit, spending is limited to $300.

Health insurance

By law, your child can remain on your employer or marketplace health insurance plan until they turn 26. For most families, this is the most affordable option.

Even if your child is covered by your policy, their college may automatically enroll them in its health insurance plan to ensure that they’re protected. But these plans can be expensive, averaging $3,000 to $5,000 a year, according to HealthInsurance.org. Make sure to waive that coverage if your child is enrolled in your plan or in another option that better suits their needs.

If your child can’t enroll in your plan, an alternative is insurance through the government’s health care marketplace, at HealthCare.gov. If the child is a dependent on your tax return, your income will determine whether they qualify for a premium tax credit and, if they are eligible, the size of the credit, which lowers the premium. If you don’t claim your child as a dependent, they may be able to get a larger subsidy based on their income, if it’s lower than yours, says Divya Sangameshwar, insurance expert at consumer website ValuePenguin.

At www.kff.org/interactive/subsidy-calculator, you can use the tool from the health policy research organization KFF to estimate premiums and subsidies.

Policies are divided into four categories — bronze, silver, gold and platinum — based on the amount of the premium, out-of-pocket costs and deductible. Generally, bronze plans have the lowest premiums and highest deductibles, platinum plans have the highest premiums and lowest deductibles, and silver or gold plans fall somewhere in between.

Your child can apply for coverage during annual open enrollment, which runs from November 1 to January 15. Or, if your student has a qualifying life event, such as moving to a new area to attend school, they can apply outside of open enrollment.

Car insurance

Because young drivers are more likely than older drivers to be involved in car accidents, their annual auto insurance costs can be considerably higher. According to Bankrate, yearly costs average $5,158 for an 18-year-old male driver and $4,778 for a female driver of the same age. By comparison, the average annual cost of car insurance for a 50-year-old is $2,514.

Greg Martin, president of Think Safe Insurance in Brandon, Fla., recommends that you keep your child on your auto policy, which may allow you to maintain a multi-car discount and lower your child’s costs.

Insurance companies commonly provide student discounts. Progressive Insurance, for instance, offers a discount if your child attends college full-time at least 100 miles from home, is younger than 22 and drives the car only when they’re home during school breaks. State Farm has a Steer Clear discount for those who are younger than 25, haven’t caused any accidents in three years and complete a driver training program.

Explore some of today's best car insurance offers with the tool below, powered by Bankrate.

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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