Many retirees supplement their income with part-time work, but job losses are increasingly common. This can leave retirees struggling to maintain their lifestyle. A recent uptick in unemployment and individuals leaving the workforce underscores this challenge. The problem is particularly acute for freelancers and the self-employed, who often lack the safety net of traditional employment.
Miklos Ringbauer of MiklosCPA, a Southern California accounting firm specializing in older freelancers, noted a significant increase in client stress due to project cancellations. One client experienced a 60-day payment delay from a major Japanese automaker. This situation reflects a broader trend among older workers, many of whom rely on freelance work for supplemental income.
Jennifer Goforth Gregory, a freelance B2B tech writer, observed a challenging environment for freelancers. She cited budget cuts, political factors, the rise of AI-generated content, and shifts in search engine optimization as contributing factors. This confluence of issues has made it more difficult for freelancers to maintain a steady income.
Experts suggest several strategies for dealing with unexpected income loss. Valorie Burton, author of “Rules of Resilience,” advises focusing on adaptation rather than resentment. She emphasizes the importance of preparedness, suggesting that anticipating potential income loss allows for a quicker recovery when it occurs.
Harry Agress, a retired physician and author, advocates for embracing change. He shared the story of a former illustrator who transitioned into baseball consulting, leveraging his anatomical knowledge and passion for the sport. This illustrates the potential for finding new opportunities based on existing skills and interests.
Three key strategies were highlighted for managing unexpected income loss. First, reviewing cash flow, budget, and priorities can help determine which expenses are essential and which can be reduced. This approach aligns with the principles outlined in Arthur C. Brooks’ book, “The Happiness Files,” which emphasizes the value of subtraction over addition in midlife. If income replacement is necessary, building emergency savings and tightening the budget are crucial steps, along with potentially adjusting quarterly tax payments.
Second, Burton’s resilience framework emphasizes adaptive skills and protective resources. Developing adaptive skills involves assessing the impact of income loss and brainstorming alternative solutions. Protective resources include leveraging networks and relationships to identify new opportunities. Networking proved valuable for the author, who secured freelance work through former colleagues.
Third, widening the scope of potential work options is essential. This may involve pursuing work that offers less financial reward but greater personal fulfillment. Agress highlighted his success in turning his photography hobby into a supplemental income source, and suggested exploring adjunct professor positions as another option. He emphasized finding work that provides a sense of purpose.
Kathy Kristof, who rates freelance platforms on her website, promotes “microhustles” – small, specialized gigs that leverage individual skills and experience. She points to examples like a former HR professional earning $200,000 annually writing resumes and the increasing demand for part-time professionals in various fields by small businesses. She also highlights the resources available to older workers, including the potential to rent out property or unused space. The flexibility of remote, part-time work in areas like project management, mental health, and administration is also on the rise. Older workers, she noted, have a unique advantage in this arena, often possessing assets and skills that younger workers lack.
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