Working During Your Retirement Years

Greetings! I hope this finds you well and enjoying life.

An increasing number of employees nearing retirement plan to work for at least some period of time during their retirement years. The obvious advantage of working during retirement is that you’ll be earning money and relying less on your retirement savings, leaving more to potentially grow for the future and helping your savings to last longer. But there are also non-economic reasons for working during retirement. Many retirees work for personal fulfillment to stay mentally and physically active, to enjoy the social benefits of working, or to try their hand at something new. The reasons are as varied as the retirees themselves.

If you’re thinking of working during a portion of your retirement, you’ll want to consider carefully how it might affect your overall retirement income plan. For example:

  • If you continue to work, will you have access to affordable health care (more and more employers are offering this important benefit to part-time employees)?
  • Will working in retirement allow you to delay receiving Social Security retirement benefits? If so, your annual benefit when you begin receiving benefits may be higher.
  • If you’ll be receiving Social Security benefits while working, how will your work income affect the amount of Social Security benefits that you receive? Additional earnings can increase benefits in future years. However, for years before you reach full retirement age, $1 in benefits will generally be withheld for every $2 you earn over the annual earnings limit ($19,560 in 2022). Special rules apply in the year that you reach full retirement age.

Everything that medical science knows doubles every seven years, therefore longevity is definitely a force to consider in your long-term planning. Continuing to work longer or in some part-time capacity early in retirement can be beneficial in a number of ways. If you have questions or comments about this information or would like to speak about your retirement plan give us a call.
Best regards,
Jeff Christian CFP, CRPC

Life is like a soccer game you need goals.
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