If you're younger than full retirement age and already collecting Social Security, for example, there's a limit to how much income you can earn and still receive your full benefits. There are other financial factors to consider, aside from continued income. Understand the potential for financial complications Ultimately, if working after retirement gives you enough financial support that you can delay your retirement account distributions or increase your Social Security benefits, you may be better off financially in the latter part of your retirement.ģ. While you will need to take required minimum distributions (RMDs) at age 72, the longer you can leave funds in your accounts, the more potential there is for tax-deferred growth. Waiting to withdraw money from traditional individual retirement accounts (IRAs) and 401(k)s can also benefit you. Your benefit amount increases by 8% each year you delay receiving it up to age 70. While you can start collecting Social Security at 62, your benefits increase if you wait until you reach full retirement age and continue increasing until you hit the maximum retirement age at 70. “If you delay Social Security benefits until age 70, you can increase your monthly benefits,” explains Thiegs. While many people seeking jobs after retirement don’t need additional income, it can still be an advantage, especially if the extra income means you can hold off on collecting Social Security or withdrawing from your retirement accounts. “They’re finding a way to give back - whether it’s to children, a service or to the community,” Thiegs says. Many would-be retirees find a second calling in working for volunteer organizations or nonprofits. Often the draw of a second career is job satisfaction and fulfillment, rather than a steady income. If you’re interested in continuing to work in retirement, consider these four factors.Īs Americans live longer and enjoy a longer retirement, many retirees are finding they have the time and energy to approach a new career that is meaningful to them personally or begin their own projects from scratch. Many older workers are interested in finding a role that allows them to try something new, generate a positive social impact or simply stay active and engaged. It may give them an opportunity to do something in a field that is more aligned with their passions, that they might not have had the opportunity to do as a profession.” “One is for the community and the workforce, and the second is for the individual. “I see two benefits to continue working after retirement,” says Tom Thiegs, leadership and legacy consultant for Ascent Private Capital Management at U.S. Many would-be retirees are trading leisurely golden years in favor of a second career or passion project - what’s sometimes referred to as an encore career. Retirement no longer looks like it did 20 years ago.
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