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A slow economic recovery and volatile financial markets are forcing many Americans to embrace a new reality: They will need to work during retirement. The good news is that individuals who work after they retire, either full- or part-time, experience fewer major diseases and function better day-to-day than those who stop working altogether.1 If you plan to work during retirement, here are two points to keep in mind:
Retirement career choices should be low in stress.
In retirement, you may decide to consult in your current field, start a new business that capitalizes on your skill set, offer coaching or mentoring, or work abroad through temporary internships or volunteer vacations. No matter which option you choose, experts say that it is important to stick with lower-stress opportunities (however you define and perceive stress).
Your Social Security benefits may be taxable.
Working during retirement may increase your annual income, which may also increase your taxes. According to the AARP, about one-third of Social Security recipients pay taxes on benefits because their income is higher than annual limits. Before you sign up for Social Security, talk with me, an accountant or a tax professional to explore your options.
Whether you want to stay active or need extra income to make ends meet, working during retirement may be a good idea. Carefully consider the type of work you would like to do and make sure you understand how the extra income may affect your Social Security benefits.
Seasonal job opportunities can be a great way to travel and learn about new communities.
You can find ideas and opportunities on Web sites like:
• Coolworks.com — Seasonal jobs in some amazing places
• Nps.gov — The National Park Service Web site lists volunteer and work opportunities
• Seniorcorps.org — Information about volunteering and opportunities to do so
• AARP.org — Check out the “Work & Retirement” section for articles and information
For the complete July newsletter click here.
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