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Returning To Work After Retirement

reasons why you would do it

By Kevin RoachePublished 3 years ago 7 min read
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If you think of retirement, what comes to your mind? Do you think of white sandy beaches, exotic cruises, and a life free from worries? Well, if you earned a millionaires salary when you worked, this may be a reasonable expectation. Otherwise, you will find (hopefully not the hard way) that those investments and pensions don't meet your financial needs.

Economic reasons often prompt retirees to return to the workforce and continue making money. For others, reasons for going back to work after retirement include camaraderie, mental health, or pure love of work. Others simply love work; they can't imagine life without it.

If you are thinking of getting back to work after retirement, there are some consequences you will need to be aware of. These factors could increase spending more during your retirement. In this article, we will consider three considerations to keep in mind. Then, we will run through some of the common reasons older adults decide to return to work after retirement.

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3 Things to Consider

The first thing you ought to think about are Social Security consequences. Depending on your age and whether you have already started collecting benefits, you will find yourself on tricky ground if you return to work. For example, if you are already retirement age (66-67) and have begun collecting Social Security, going back to work will cost you. On average, if you earn $2 more than the annual limit (about $17,040 in the year 2018), you will lose $1 in benefits.

Once you reach full retirement age, you get your full SS benefits no matter your earnings. If you decide to return to work within a year after you have started receiving your benefits, you can return the year worth of benefits and get them later on.

The next factor to consider is your Income Tax. One of the benefits that come with retirement is that it puts you in a lower bracket, which means less tax is deducted. If you decide to go back to work, you increase your income and in turn get higher income tax fees. The amount you earn during your retirement can significantly affect your tax rate and the amount you pay for retirement account distributions.

Lastly, think carefully about is the effect working will have on your Medicare. Before accepting any kind of employment, make sure your new employer’s benefits will not change your Medicare coverage. Remember that when those 65 years and older are covered by group health insurance offered by secular work, this plan works first before Medicare is used.

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Common Reasons For Going Back To Work

Once you have evaluated these factors and spoken to a professional about returning to work, you can start evaluating the purposes you have for returning. Always remember that if you are to succeed, you will need to have personal reasons that you believe in.

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Here are some of the most common reasons seniors decide to return to the workforce.

Financial Stability

According to USA Today, one in four seniors will live past 90, and one in ten will live past 95. Considering that retirement age is on average 66 years old, this will mean you will need enough money to get you through 20 years without income. For many people, this is merely impossible.

Although you have enough savings from your retirement plan to cover for basics, there other considerations that may affect whether these savings will suffice. For example, consider inflation, rising medical cost, and long term care.

This is one reason why many retirees feel that earning while retired can keep current savings intact while living off their income. Also, as long as you work for a different employer, your benefits will not be affected.

Physical and Mental Health

Retirement and boredom usually go hand in hand if you aren’t able to find something productive to spend your time on. For some people, getting back to work is the most practical ways to use their time. Also, going back to work means meeting new people, making new friends, learning new skills- all which can prevent depression in the elderly.

According to an article published in the New York Times, one of the benefits of working during later years in life includes activation of the brain. Work offers a routine, purpose, and reason to get up in the morning. The social environment offered in work also means more engaging with bosses, subordinates, customers, which promotes better mental health.

On the physical aspect, getting back to work might mean exerting yourself a little more than usual. Commuting to the bus station or simply walking around your office is a new opportunity to stay physically active. Any type of work that takes you away from home a few days a week is better than staying at home the entire time.

Doing something you love

Now that you are retired and already have a pension plan, you have the opportunity to do something you enjoy. Many retired folks decide to go back to work after retiring for reasons that go beyond earning more income. A new job that you love that brings a steady of income no matter how small can give you great satisfaction.

If this is a major you are considering going back to work, figure out a skill you have or have recently learned and look for work in that avenue. For example, if you love technology, you can think of working part-time for a small company creating videos or doing secretarial work. The secret here is to get involved in something you believe in. Like they say: ‘if you do something you love, it won’t feel like work’.

A chance to work Part-time

With your lowered financial demands, you might be able to get the best of both worlds-do satisfying work while enjoying the perks of retirement. Working full time during your golden years will likely leave you drained both physically and mentally. However, a job that has lower hour requirements gives you a degree of structure and routine while leaving enough time for things you enjoy.

More and more companies are appreciating the wisdom and experience older employees have to offer. You will likely be able to find a line of work that is not physically demanding yet provides the mental stimulation you are looking for.

A sense of accomplishment

It is not easy to find something to replace the sense of accomplishment your work previously gave you. Many who fail to find something satisfying to do within the first year of retirement end up suffering from boredom, which may lead to depression.

If you are having difficulty filling the void, you may consider going back to work. As long as you find a job that you enjoy, you will maintain that deep satisfaction which many find irreplaceable. Feeling useful, admired, and appreciated are a few of the reasons why going back to work after retirement is becoming more and more common.

You simply love work

Other older adults don’t have any complicated reason for returning to work- they simply love work so much they can’t let go. If this is true in your case, there is nothing to be ashamed of. As we discussed in our article about how to deal with getting older, you should not feel pressure to conform to society’s expectations. Just because everyone else thinks you should take things easy, doesn’t mean you have to.

Dedication to work can be an asset when you are older because it means you have developed a valuable work ethic that you can put to use in your new job. Your new employee will surely appreciate all your experience.

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Conclusion

Like everything else that goes with retirement, there are no hard set rules to abide by. There is nothing wrong with wanting to stick around the workplace for longer than expected neither is there anything wrong with retiring for good. The decision is up to you. Just keep in mind the consequences going back May face- Medicare, income tax, and social security. Make sure you talk to your employee in detail and find out how working will affect your future pension.

Before even considering getting back to work, analyze your reasons for returning. You need to make sure that your goals are valid and you have the physical and mental strength to go back to work. It is wise to consult your physician and family members and get their feedback.

Getting back to work after retirement can be an enriching experience that does wonders to your mental and emotional health. Still, it may not be for anyone, so weigh your options carefully before jumping back into the work environment.

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Kevin Roache

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