{"id":666,"date":"2012-04-10T16:39:51","date_gmt":"2012-04-10T16:39:51","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=666"},"modified":"2012-04-29T21:18:12","modified_gmt":"2012-04-29T21:18:12","slug":"paying-for-your-working-retirement-education-before-you-retire","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=666","title":{"rendered":"PAYING FOR YOUR \u201cWORKING\u201d RETIREMENT EDUCATION BEFORE YOU RETIRE"},"content":{"rendered":"
By KERRY HANNON<\/div>\n

This past weekend, I was sitting toes in the sand on a New Jersey beach talking to my friend, Larry Schmidt, who has spent more than 30 years working for one company,Meditech<\/a>, based in Westwood, Mass.<\/p>\n

It\u2019s a fast-growing medical software firm. Nice field to be in, by the way. They\u2019re hiring. And he has been there as it has grown by leaps and bounds, enjoying and being an integral part of the ride.<\/p>\n

Now in his late 50s, he is beginning to think about what\u2019s next for him. Not any time soon, of course, but eventually when he retires in a decade or so. His kids are already graduated from college. But what struck me most about our conversation is how much he likes his work, the challenges, the opportunity to mentor and coach younger employees and the overall work environment.<\/p>\n

He\u2019s a marketing and communication guy. His off-site passion is painting and drawing, and his employer is all for it. When Larry wanted to take classes to hone his painting technique, Meditech paid the tuition to support his \u201ccreative development,\u201d particularly since he manages a groups of designers and writers.<\/p>\n

There\u2019s even a \u201ccreativity lab\u201d at the office for workers to zip into for a respite during the day that is stocked with canvas, paints, brushes and more. All available to encourage folks to slap out a few brush strokes and re-charge.<\/p>\n

The creativity labs are set up to \u201cpromote teambuilding through creative activities (such as collaborative drawings), rather than for individual recreation,\u201d Larry says. \u201cIt\u2019s more in the context of working collaboratively on a fun activity, and carrying this back to the work place, rather than for individual recreation.\u201d<\/p>\n

So, I say the hell with the fitness center. Exercise the soul. (Know any other companies who offer this kind of non-ping-pong workplace amenity? Send along examples.)<\/p>\n

Most Saturdays, Larry de-stresses for a few hours with a group of fellow artists who paint together and critique each other\u2019s work. His next act may very well flow from this artistic passion in some incarnation. He\u2019s not sure.<\/p>\n

I\u2019m intrigued by the creativity lab, but the fact that Meditech paid for his art classes really made me take notice. Lots of employers have cut back on these education-reimbursement programs in the lagging economy.<\/p>\n

Under federal law, employers can offer up to $5,250 a year in tax-free education-assistance benefits for undergraduate or graduate courses. You don\u2019t need to be working toward a degree.<\/p>\n

We live in a time of angst where older workers have been kicked to the curb unprepared \u00a0either for what kind of work to pursue, or even with the skill-set needed.\u00a0What I\u2019ve found is that the workers who are back in the workforce for a second round \u00a0are the ones who had started to lay the groundwork for their future well in advance. Bottom-line: Continuing education is an investment in yourself.<\/p>\n

After my talk with Larry, I realized that there are plenty of employers who are helping to prepare older workers for their next stage of life. If you\u2019re fortunate, you work for one of them.<\/p>\n

We boomers need to embrace learning, and tap into our employer\u2019s largess to build skill-sets and open doors for our future endeavors. Admittedly, you might need to do some smooth-talking to convince your boss that your course of study will resonate, even tangentially, with your current job. But nothing ventured, nothing gained.<\/p>\n

I wouldn\u2019t suggest telling your employer that the class is to help you \u201cprepare for life after retirement.\u201d Not too many managers are ready to invest in their employee\u2019s post-retirement career. They\u2019re interested in how continuing education will make you a more productive worker.<\/p>\n

But gearing up new skills and adding to your kit, while you\u2019re gainfully employed, will prepare you for your transition. That can be true even if you just have an inkling of what interests you and enroll in one class.<\/p>\n

We need to set up for \u201cAdulthood II,\u201d as the famed anthropologist Mary Catherine Bateson refers to the newly emerging period of active engagement that falls roughly between 55 and 70, in her latest book,\u00a0Composing a Further Life<\/a><\/em>.<\/p>\n

Adulthood I is the busy and productive time, which includes child-rearing years and the building of careers, Bateson says. When you enter \u201cAdulthood II,\u201d you \u201creflect that you have done much of what you hoped to in life but it is not too late to do something more or different. The doorway to this new stage of life is not filing for Social Security, but thinking differently and continuing to learn.\u201d<\/p>\n

But not enough people are doing that. Perhaps they\u2019re caught off-guard by the realization that they will need different skills to transfer to a new field, even part-time, or follow a passion.<\/p>\n

My guess is it\u2019s a money issue, too. Education is expensive. And it takes time. Pursuing a certification, or adding classes means weekends and evenings, and most people are leery of making that kind of commitment.<\/p>\n

Marc Freedman in his insightful book,\u00a0The Big Shift<\/a>\u00a0<\/em>trumpets the need for adult education. \u201cWe are rewriting the map of life,\u201d says Freedman, CEO and founder of\u00a0Civic Ventures<\/a>, a think tank on boomers, work and social purposes.<\/p>\n

\u201cIn past, if you were 56 or 57, you might only be a year or two before you were ready to slip into early retirement,\u201d he told me. \u201cNow, people are thinking income beyond 60. They are thinking another 10 or 15-year career. That changes the entire equation about what you want to do, what\u2019s possible to do\u2013whether it\u2019s worth investing up front for additional education.\u201d<\/p>\n

Here are some other resources to help you fund your \u201cworking\u201d retirement education.<\/p>\n

Tuition and tax deduction.\u00a0<\/strong>You may be able to deduct qualified tuition and related expenses that you pay for yourself. To determine whether your expenses are qualified, refer to\u00a0Publication 970<\/a>, Tax Benefits for Education.<\/p>\n

Tax Credits<\/strong>. Depending on your income, you might qualify for various tax credits, such as the lifetime learning credit, worth up to $2,000 each year for an unlimited number of years. That credit can be used for tuition and fees, books, supplies and equipment for courses to acquire or improve job skills.<\/p>\n

Student Aid\/Financial aid<\/strong>. Low-interest Stafford loans are the main federal loan for students and\u00a0have a fixed interest rate of 6.8%.\u00a0Go to\u00a0FinAid<\/a>\u00a0for details and a list of education lenders.<\/p>\n

Scholarships and grants<\/strong>. Look for those available specifically for older students that are offered by different associations and foundations. Check out sites such as\u00a0FastWeb<\/a>\u00a0and\u00a0FinAid<\/a>\u00a0to find what\u2019s available.<\/p>\n

529 plan.<\/strong>\u00a0Yes, you can tap you child\u2019s plan if they aren\u2019t going to need it, but you might want to invest in your own. If you think you might go back to school in a few years, this is a way to set aside money that could grow tax-free and perhaps provide a state income-tax deduction.<\/p>\n

You can use the money to pay eligible expenses, which include tuition for a part-time, full-time or distance-learning program, fees, books and supplies. You can attend any college, university or vocational school, as long as that school is qualified by the Department of Education to participate in its student aid programs.<\/p>\n

If you don\u2019t go to school, or your employer agrees to pay the bill, you can transfer what\u2019s left in your 529 plan to another beneficiary, as long as they\u2019re a family member\u2014child, grandchild, niece, nephew\u2013to pay for their education.<\/p>\n

If you decide to take out the funds to pay for non-qualified expenses, you will owe tax on the earnings plus a 10 percent penalty. The principal you contributed can be withdrawn tax- and penalty-free. You can research plans at\u00a0www.savingforcollege.com<\/a>, or through the College Savings Plans Network,\u00a0www.collegesavings.org<\/a>.<\/p>\n

Paying \u00a0for your senior education is no day at the beach, but don\u2019t forgot you\u2019re building more than a castle in the sand.<\/p>\n

\"\"<\/a>I\u2019m\u00a0the author of\u00a0What\u2019s Next? Follow Your Passion and Find Your Dream Job<\/a>, available here\u00a0www.kerryhannon.com<\/a>. To learn about great jobs for retirees, check out my\u00a0column\u00a0<\/a>on AARP. Follow me on Twitter,\u00a0@KerryHannon<\/a><\/p>\n

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