Even though many of us may have dreamed for years about retiring and taking it easy, the reality doesn’t always measure up to our dreams. We find ourselves considering going back to work at least part-time. Folks work after retirement for many reasons: some like to keep busy, while others need the money. Some like using the skills they have acquired over a lifetime, while others enjoy the challenge of learning new skills.
The first months of retirement
The first months of retirement can be stressful if you have been working full-time outside your home. After you have your fill of sitting around the house in your underwear, you begin to yearn for more human contact than the Price is Right or Dr. Phil. Of course, you can spend more time fishing or playing golf, but you can’t do either 24/7. Volunteering is always an option and a worthy one at that. It’s a good idea for everyone, retired or not, to do a bit of volunteer work in their community.
But there’s something very satisfying about having a job that makes many people return to work in retirement. Having to be someplace at a certain time does more than fill in the calendar – it gives meaning to our lives. We make a difference, we contribute our time and skills.
Decisions, decisions
Every retired person who want to works has to make a number of decisions, including:
- Do I want to do the same work as I did before I retire or do I want to try something totally different?
- Do I want to work full or part-time?
- What hours ma I willing to work?
- How much do I want to make?
- How much do I need to make?
- How important are benefits like health insurance, vacation days, etc?
- How far am I willing to travel to work?
Keeping busy
Here are several different options for you, one of which will help to keep you busy even when you are enjoying not being busy.
The most popular way of working after retirement is getting a rather simple job, such as working in a grocery store bagging groceries or being a greet at Wal-mart. There are plenty of these retirement options that are available to us and typically, that is what many of us want. We don’t want to have to go through the hassle that we may have gone through whenever we worked in a corporate environment. Having a job such as this is going to be enough to keep us busy and to keep us from sitting at home without anything at all to do. It also gives a a chance to socialize.
Depending on what we did whenever we were in the workforce, there may also be jobs in retirement available for us in that direction as well. Although we may not be able to work directly in the same field, we may be able to be a consultant for those businesses that we used to work for. Many people find that after they retire, they actually begin making more of an income because of working as a contractor for these companies instead of working for them as an employee.
Limits on retirement income
You do have to consider the impact of working after retirement on your pension benefits and Social Security. Some organizations have rules that limit receiving pension benefits will you are consulting for the same organization that funded the pension. This is especially true if you take early retirement. Be sure to check with the pension management before taking any job with the same company.
As far as Social Security is concerned you can receive benefits while working but there are some restrictions. For example, if you are under your full retirement age and receive monthly benefits, Social Security will deduct $1 from your benefit payments for every $2 you earn above the annual limit. In 2009 the limit is $14,160. Each year until you reach the full retirement age, you have to let Social Security know how much you make above the limit. If you don’t, you will get a bill for that amount. The Social Security regulations about working are fairly easy to understand but more detailed than this article.
Your Social Security benefit is based on the highest 35 years of income. If you work after retirement, there is a possibility that you may be able to raise your monthly income. Of course, you will be paying into the Social Security system while you work.
More to come
on Jan 17th, 2009 at 6:38 pm
I’m 64.5 and 66 will be the age that I receive full SSI benefit. Im loosing my job soon so when out of work I plan to start taking SSI benefit. Say, if I found a good paying job after six months, can I pay back all the benefits that I have received for the six months, stop the benefit until I reached 66 starting to draw full benefit, regardless whether I or not?
on Jan 17th, 2009 at 8:51 pm
Social Security and SSI (Supplemental Social Secuirty) are not the same thing. SSI is a low income supplemental program. I assume you meant Social Security and not SSI.
If you earn more than you should while collecting Social Security before your full retirement age, you will be billed for any overpayment of benefits.
You will receive a detailed explanation of benefits and options for paying Social Security back. For example, you may make a lump sum payment or reduce monthly benefits for a period.
I would suggest contacting you local Social Security office or calling the toll-free number – 1-800-821-5012.
You can also visit the website: http://www.socialsecurity.gov