Working After Retirement
Nowadays, with no end in sight to a volatile economy, more and more people are working after retirement. The ups and downs of the Great Recession have had nauseating effects on everyone, as investment portfolios have ridden the roller coaster between bull and bear market. If you’re wondering how you’ll make ends meet, rest assured you’re not the only one with a need for at least some income to supplement the retirement planning you’ve already done. A part-time job or home-based work may be the ideal solution for you.
That said, there’s more to the increasing number of people over 50 – let alone full-fledged retirees – shifting directions at work than just the need for money. Having found an abundance of free time or simply a desire to continue making a meaningful contribution to society, many individuals are seeking opportunities to work as a means to fulfill long-held dreams or pass on wisdom. If you’re considering another job after your last day at the office, here are a three things to consider:
Social Security Benefits
After decades in the workforce, chances are good you were planning on claiming Social Security benefits for at least part of your income. If you decide to continue working, though, you will need to be aware of limits placed on the amount of money you can earn from your new job without a reduction in benefits. For example, if you have yet to reach retirement age, the federal government will withhold $1 for every $2 you earn over $14,160. Once you get to the legislated age where “normal retirement” comes into effect, this amount jumps to $37,680 and the deduction is less, but it’s important to plan ahead as you budget for a fixed income in your golden years.
Skills You Have
One of the best ways to find a job is to look at the skills you’ve acquired during your working life and see where they might be applied. Does your former employer or one of its competitors hire consultants? Are there industries where your experience can transfer over? Can you find seasonal work – say, doing taxes if you were an accountant? Asking these questions will help you to see openings beyond your local retail chains and, as long as you don’t attempt to pull rank based on your former position, can be very flexible – and lucrative.
Understand up front what your goals are when it comes to how many hours per week you are available. It seems incredibly straightforward, but you don’t want to move from feeling overworked at one job to having no free time because of another. You have spent a large portion of your life on the daily grind, so be particular about entering into something that takes up a lot of your hard-earned free time. When you get started at your new employer, be sure your workload is limited until you get a feel for how much you enjoy it. You can always take on more hours later, if you choose.