You put in all those years of slaving away only to hit your retirement age and wonder what you’ll do with all your free time. You can travel, of course, or maybe finally get to all those home projects that have been building up over the years. Or you could go back to work.
Working after retiring has become more commonplace as seniors find themselves bored or unable to live on the money they receive from Social Security, pensions, investments, savings or IRAs. Working after retirement doesn’t mean you have to trudge off to a job you hate everyday. With even a small amount of regular income, you can supplement your monthly income by doing a type of work you love. You will have to be careful not to earn too much money, otherwise your Social Security benefits could be taxed by as much as 85%, but that shouldn’t stop you from turning a hobby into a small business, or picking up a few hours at a neighborhood store. Many former executives find comfortable part-time jobs as consultants for businesses. Their years of business acumen benefits new or growing businesses, and the consultant/retiree doesn’t have to punch a time-clock or get involved with business politics.
Another added benefit of working part-time after retirement is better health. The national Health and Retirement Study showed that workers who continued to work part-time after full-time retirement suffered less health setbacks than those who stopped working altogether. If the part-time workers stayed in their same line of work, their health benefits were even greater.
Before you decide to keep working after retirement, it is best to sit down and do some number crunching. Remember in retirement, you probably won’t need the same amount of money to live on as you did when you had a full-time job. Money previously earmarked for commuting, can be reduced. If you own a car, you can now ask for the pleasure rate on your car insurance. The cost of lunches, clothing, shoes, continuing education, business travel and any other career-associated expenses now drops. And while you’re number crunching, don’t forget to talk to your spouse or partner about continuing to work. They may have other plans for your anticipated extra time!
Whether you choose to enjoy your extra hours of rest and relaxation every day or you continue to work, talk to an estate planning attorney today to make your working years pay off for years to come.