Working After Retirement

People usually surrender to the notion that retirement means they have to stop working and spend the rest of their lives slowing down while enjoying the leisurely activities they did not have time for while they were employed.  However, you could consider working even after your retirement. 

Surveys shown that almost two-thirds of Americans who are not yet retired say that they plan on continuing to work at some type of job that will continue earning them a paycheck even after retirement.

Reasons for working after retirement

Some retiree consider working in order to make a little extra money, as well as having that sense of "doing something" that retirement life could not satisfy.  However, there are cases of retirees who want to work because they did not save enough money after retirement and would want to get by. 

Unfortunately, many people would end up like that:  working even well after retirement because they are simply broke.  Retirees who work after retirement should consider their job as part of their financial planning.

Will working after retirement affect the retirement income?

People who consider working even after retirement tend to wonder whether they would lose their Social Security benefits or whether their pensions will be affected.  Retirees who work can still receive Social Security retirement benefits once they have reached full retirement age.  The catch, however, is whether the person who retires and receives Social Security before his or her full retirement age.

Meanwhile, working after retirement can affect any pension you could received from employers you had.  You need to make sure of your company’s policy regarding pension benefits on how your pension will be affected. 

Working after retirement could also place you in a higher tax.  This means that when you begin taking withdrawals from your IRA or 401K, you could actually be actually end up paying more taxes.  Your Social Security benefits could also be subjected to taxes.

Job search after retirement

Looking for work after retirement is different from what you are used to.  Aside from financial considerations, you also need to contemplate about your lifestyle and age. 

A 40-hour-a-week job could not be the right job for you, as you need to remember that retirement is also your time to relax and enjoy the rest of your life.  Also, it cannot be denied that many companies practice age discrimination, thinking that older employers take longer to train and got up to speed than other workers. 

Because the prospect of finding a job at retirement age is slim, you need the help of your family and friends.  Ask for vacancies to them, even to your former employee or employers.  You can also try searching for a job online, filtering age requirements according to your current age.

 

Posted by Ardent Editor on Sep 18 2008 in Money 101

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