Working During Retirement

Blog Category: Lifestyle

Can you work during retirement? Of course you can! Some people view their retirement as the longest vacation with few responsibilities. Others prefer having a volunteer opportunity or job to keep them busy and fulfilled. Retirement is for you to spend however you like, so just remember to have fun during it! If you do decide to work while retired, here are some important things to keep in mind.

Why People Work During Retirement

There are many reasons people continue or rejoin the workforce in some capacity during their retirement:

  • You can pad your savings and have more room to invest
  • There’s more freedom to spend money how you want to during the year
  • You buy more time to qualify for government programs
  • You can maximize your Social Security Benefits by holding off until you’re 70
  • It can be a mode for you to continue building generational wealth

Types of Jobs People Do During Retirement

Depending on your priorities for retirement, you may want a different level of work compared to others. Here are some common jobs people take on during their retirement:

  • Short, independent contract or consulting work
  • Seasonal or temporary work
  • Freelancing
  • Driving for Uber or Lyft
  • Being an Airbnb host
  • Online teaching
  • Child, house, or pet sitting

Things to Keep in Mind

If you’re seriously considering adding work to your retirement plans, here are some things to keep in mind when settling on the right job for you:

  • You’ll have taxes besides your senior taxes
  • You can continue to work while receiving Social Security retirement or survivor benefits, but you should contact the Social Security Administration (SSA) to have a better grasp of where you stand based on your personal circumstances
  • You’ll want to evaluate how you want to spend your retirement and determine if you’re giving yourself enough time to do everything you want
  • You still need to take required minimum distributions (RMD) out of your pre-tax retirement accounts, like a traditional IRA or 401(k), once you turn 73
  • It can be risky to leave a Medigap plan for workplace coverage
  • You may experience age discrimination
  • You can always volunteer or mentor the next generation if you’re looking for fulfilling work without lining your pockets
  • You want to think about how your job would affect or enhance picking your perfect retirement date

Tips for Working During Retirement

As much as working in retirement will be similar to when you worked beforehand, there are some differences now that your circumstances have changed. Here are some tips to help you maximize your job in retirement:

  • Make catch-up contributions to your 401(k) and delay your withdrawals
  • Your Social Security benefit may be partially taxable
  • Watch out for your Social Security withholding, boost your Social Security earnings, and consider delaying your Social Security payments
  • Explore your options with Medicare and Medicaid

Ready to turn your finances around and plan for the future? Check out our free ebook, 6 Money Planning Tips For Your Senior Living!

At Life Enriching Communities (LEC), we’re committed to ensuring you feel well-equipped to plan their future and age how they wish. Explore more resources on senior living or contact us today to learn more about our legacy of services and programs that bring meaning and purpose to every stage of life. of life.