Wealth, Health & Performance

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Tips to Grow Wealth After Retirement

June 4, 2025

“Retirees are living longer.”

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Personal finances and retirement are inextricably linked. Retirement planning services and advocates emphasize the significance of building a sizable nest egg for the days when professionals are no longer working, but many now also note the importance of building that nest egg after retiring.

The need to build wealth even after retiring reflects a trend that has seen people spend more time in retirement over the last half century than in the decades prior.

According to the Organization for Economic Co-operation and Development, men could expect to spend just under 13 years in retirement and women 16.6 years in retirement in 1970. By 2024, the expected retirement length had reached 18.6 years for men and 21.3 years for women. That means modern professionals will spend a half decade more in retirement than people did in 1970. Those extra five years require more money for living expenses, which is why it can be so important for modern professionals to consider various ways to grow their wealth even after they call it a career.

· Avoid early withdrawals: Withdrawals from a 401(k) are taxed like regular income because such accounts are built up with pre-tax contributions. But there are ways to minimize your tax burden, and thus save money, when withdrawing from a 401(k). Avoiding early withdrawals, which are those taken before age 591/2, is one easy way to avoid a higher tax burden. Early withdrawals can trigger a 10 percent tax on top of the income taxes account holders will have to pay. By avoiding early withdrawals, retirees are building wealth by lowering their tax burden.· Take the required minimum distribution when you must:  Another way to avoid a tax burden that can diminish your wealth in retirement is to take your required minimum distribution (RMD) when you need to. The Internal Revenue Services reports that account owners who fail to withdraw the full amount of the RMD by the due date are subject to a 25 percent excise tax on the amount not withdrawn (the tax burden is 10 percent if timely corrected within two years). The IRS notes account owners must take their first RMD for the year in which they turn 73.

· Explore new ways to invest: The increase in expected retirement length underscores the fact that many retirees may need to abandon conventional wisdom related to retirement and risk. Though it’s still best for retirees to avoid particularly risky investments, they might need to accept a degree of risk that retirees did not have to take on decades ago. Simply put, longer retirements may require longer engagements with risk. Retirees can work with a financial advisor and conduct their own research to identify vehicles to grow their wealth without making themselves and their nest eggs highly vulnerable to market fluctuations.

· Embrace new income opportunities: Retirees may have more potential income streams than they realize. For example, passive income can be an effective way for retirees to earn money without going to great lengths. Retirees who travel for months each year and/or those who live in colder climates but spend winter in warmer locales can generate passive income by renting out their properties when they’re not at home. Retired professionals with decades of experience in their fields also can explore consulting or teaching opportunities that won’t require substantial time commitments but can still bring in money.

With expected retirement lengths on the rise, retirees are encouraged to find ways to grow their nest eggs so they can enjoy retirement to the fullest.

Please keep in mind this information should not be considered as financial advice. Investment decisions should be based on individual research and consultation with a qualified financial professional. The value of investments can fluctuate, and past performance is not indicative of future results. Always consider your risk tolerance and financial goals before making investment decisions.  US citizens have unique tax requirements which should always be reviewed with a professional.

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About The Publisher

Jeff Corbett
As entrepreneur, author and magazine publisher with over 25 years’ experience in the global marketplace, I enjoy writing as an advocate for international business and personal freedoms. Thanks to my experiences building businesses I also have a tremendous interest in reading or writing about motivation and self-discipline.