Leave The Workforce Without Sacrificing Your Retirement

If you need to step away from your career for a while to stay at home with your kids or care for an elderly or incapacitated loved one, your automatic systems for saving for retirement will probably shut down. In order to make sure you don’t jeopardize your nest egg, you’ll need to make adjustments to account for your decreased savings power.

Bucksome Boomer has advice for making such arrangements.

If you know you’ll want to be a stay-at-home parent but haven’t yet started your family, you can focus on saving more before you take that plunge before you take the plunge. If you’re married, you can arrange for your spouse to double down on contributions to your retirement fund until you return to the workforce.

It’s important to be aware of the financial implications of your choice rather than forget about them in hopes that things will work out. Even if you’re getting into a dire financial situation, it’s best to get an idea of what adjustments you’ll need to make.

Don’t let your retirement be the price of your caregiving [Bucksome Boomer]

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  1. dolemite says:

    No comments? I think because comments will fall into 3 categories: “Wish I had a job to leave” and “I can’t ever see being able to afford to quit work at this rate” or “who can afford to save for retirement?”

    • lovemypets00 - You'll need to forgive me, my social filter has cracked. says:

      I think you’re right. I’ve always been stuck in the middle ground between “poor enough to get assistance” and “so much gross income I don’t get any help from anyone”. I’ve worked steadily for 27 years. Unfortunately, between my husband’s money shenanigans, ever increasing health insurance rates, and the amount of money it takes just to squeak by, I have very little to put back for retirement. That coupled with interest rates being virtually nil hasn’t helped.

      My plan is to work until I can’t work any longer, and then become homeless and hope that someone takes me in.

    • MaytagRepairman says:

      Ok. Here is a comment for you. Every time I see that photo I think the guy is smoking out of a bong. There is just something about the way he is holding it and looking at it from a distance.

    • Taed says:

      I’m doing fine. I’ve been saving my 15% (now 17%) to my 401(k) plans since my first job. While there hasn’t been much in the way of growth over the last 22 years, it’s still keeps me from worrying at all about retirement. Everyone should do 15%, IMHO, as you’ll stop missing it since it’s automatically deducted. On the other hand, I’ve never been short on rent, so who am I to say.

      On the other hand, a relative also had a nice amount set aside, but once she retired, she became the piggy bank for a bunch of her relatives, borrowing money for their various “needs” (cars, mortgage payments, weight-loss surgery). She also ended up shopping a lot because she was bored. So, 8 years after retirement, she blew through all $350K, has $30K on credit cards, and owes $30K in back taxes.

      • u1itn0w2day says:

        It’s good that you setting aside the money but the percent your money has grown can be as important as the percent of your pay you contribute.

        I’d learn the details of 401K including do you have a choice where your contributions are invested. Is there a choice of funds you can contribute to? Are there annuities? Can you buy stock? Cds? What is your current choice up producing?

        Big thing is learn the details including if and/or how you can make changes.

    • u1itn0w2day says:

      No comments because for many it’s either to the too far distant future or like most Americans they’ll worry about their retirement finances about a month before they retire if that.

      Investing and finances including taxes and accounting is a lifetime endevour. DO NOT WAIT. Make your money work for you.

  2. tooluser says:

    The question isn’t “Can I stop working?”. At least in the U.S. and Europe, there are huge safety nets that keep you from being homeless or starving. Homeless and starving people are homeless or starving by choice, abuse by another person, or due to mental illness.

    The question is “Can I tolerate the loss of opportunity cost if I stop working?”. I’d love to take 6 or 12 months off work and travel the world, but the amount of money I could earn if I don’t, and the delay in my retirement date if I do, is intolerable.

    • rekoil says:

      Yes, there are safety nets in place in the U.S. and Europe (and a large number of other countries as well). However, the holes in those nets are a lot larger than most people who’ve never needed assistance think, and given the current Tea Party-led fuck-the-poor mindset that’s come over the country as of late, those holes are only getting larger.

  3. u1itn0w2day says:

    Big thing is learn about investing including stocks and mutual funds before you actually decide to retire or quit. Watch and trade the stock and mutual funds you might invest BEFORE you retire. It would be best with as little on the job training for retirement financing. Read those statements. Follow the news. Shop banks and brokerages. Learn about how you are or will be taxed.

    Diversify but save a portion of your money for more aggressive investing. Mess with the conservative stuff as little as possible. But learn ahead of time and just like your resume you have to keep yourself updated on trends, news, laws and the actual progress of your investments and strategies. The future is NOW.