Why and how you might choose to stay busy


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    Editor’s Note: This story originally appeared on SmartAsset.com.

    Are you retired but want to go back to work? Unless you have developed hobbies or have significant interests outside of your career, retirement can be a lonely place.

    Suddenly, a lot of your social contacts are gone. Spiritual and intellectual endeavors could be lacking. The routines of your life have been turned upside down. Perhaps retirement doesn’t seem like what you expected. Or maybe some extra cash would be useful.

    Before getting back into the job market, consider what type of job you want and what impact the work will have after you start drawing social security.

    When you return to the job market after retirement, you are not alone. According to a recent analysis by the Pew Research Center, approximately 9 million, or nearly 19%, of Americans aged 65 and over work part-time or full-time.

    Why go back to work after retirement?

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    The current generation that is retiring is the baby boom generation, people born between 1946 and 1964. More than 10,000 a day are retiring, leaving a void in the workforce. The coronavirus pandemic is also contributing to the loss of workers.

    Companies in the United States, from small businesses to very large corporations, are hiring or trying. There are many retirees who want to go back to work. Some just want a part-time job. Others want an encore career.

    In other words, there are a number of reasons for considering retirement.

    The Employee Benefit Research Institute (EBRI) surveyed a group of people and found that it’s not all about money, although 84% of those surveyed wanted to go back to work because of the extra money and 64% wanted to fund essential expenses. The baby boom generation could often rely on company pension schemes, which were often a defined benefit plan, as well as their social security. But things change over time and inflation is eroding our purchasing power.

    Defined benefit dollars aren’t buying as much now as boomers thought, and the average monthly Social Security benefit is only around $ 1,500, although the cost of living adjustment is estimated at 5.9% in 2022. The survey found that around 21% of people wanted to go back to work to delay getting their social security benefits.

    Social Security and Medical Care Considerations

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    Your Social Security and Medicare benefits should be part of your retirement plan. You can work and still receive social assistance, but you have to be careful. You should check with the Social Security Administration (SSA) what your full retirement age is.

    For example, if you were born in 1952, your full retirement age is 66. If you return to work before your full retirement age and have already applied for social security contributions, you can make $ 18,960 per year without losing benefits. If you return to work when you are 66 or older, you can make $ 50,520 a year. These numbers can change from year to year. That’s quite a difference.

    If you return to work before your retirement age and after you apply, the SSA will deduct $ 1 from your benefits for every $ 2 you earn over the limit. From the year in which you reach full retirement age, your benefits will no longer be reduced and you will receive these benefits back.

    However, if you wait until you reach full retirement age to return to work, the SSA will deduct $ 1 from your benefits for every $ 3 you earn over the limit. Anything you earn when you return to work is also subject to social security tax. Remember that social security benefits are based on your highest 35-year income.

    If you return to work and your company offers health savings accounts, you will not be able to contribute to an HSA if you are enrolled with Medicare. You need to check that the new company’s health insurance is Medicare compatible.

    Jobs for retirees

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    Here are some additional career ideas for the retiree:

    • Freelance / Consulting: Some retirees are returning to their old businesses in a consulting or professional capacity. Companies are usually happy to get help from people familiar with the company, at a lower cost. Retirees often start their own freelance business or consulting firm and share their expertise in their field with a wide variety of clients
    • Found a company: An offshoot of this idea is starting your own business. Maybe you’ve been in sales and there’s a product you love to sell. You could buy a business or even buy an emerging franchise. You can start your own business as a craftsman if you enjoy helping people and working with your hands.
    • Brand ambassador: Do you really like a particular brand of product or service? Companies will pay you to promote their brand.
    • tutor: Share your knowledge with traditional and adult students.
    • Guest service staff: Do you like people? Hotels, salons, and spas will pay you to show their guests around and speak to them knowledgeably.
    • Bank clerk: Such companies like baby boomers because they are trustworthy and reliable.
    • Social media expert: Promoting a company takes a lot of time and skill. Are you well versed in social media? Businesses will pay you to meet their social media needs.

    Many companies now almost exclusively use online job exchanges. Here are some websites that can help you find a job and give you job search tips:

    The bottom line

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    Don’t let retirement stop you from having acquired valuable skills and marketable knowledge during your professional years.

    After you retire, you will finally have the opportunity to use these skills and knowledge in a way that is fulfilling for you. But keep your entire retirement plan in mind: Make no mistake about Medicare or Social Security.

    When you have a 401 (k), plan your payouts carefully. If you feel you need help with your retirement plan, contact a financial advisor.

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