Part-Time for Old Timers
A few years ago retirement used to be a foregone conclusion. Boomers expected to retire and enjoy what they termed the “golden years.”
These days, however, things have changed. 30 percent of American workers who are aged 60 and above now plan to retire by the age of 70 or even beyond that. Some folks don’t think they will ever be able to stop working because they have not got enough money to do so.
A third of Americans over the age of 60 and still in the workforce are not even sure how much they will need to retire. If you don’t know how much you require, you can’t even start to plan for retirement. You are flying blind in the dark.
Statistics show that over 50 percent of people between the ages of 60 and 64 were still working at least part-time in 2017. When it came to slightly older folks between 65 and 69, just over 30 percent were still working. If you’re already receiving a Social Security check and you’re still working, your benefits could be adjusted if you earn over a certain amount each year.
If you have not reached full retirement age, you can earn $600 more in 2019 than last year. You’re allowed to earn up to $17,640 without being penalized. Beyond that amount, $1 will be deducted from your monthly payment for every $2 that goes beyond that limit set by the government.
Once you reach full retirement age, no benefits will be withheld if you continue working. Check to see what your full retirement age is because the government is increasing it by two months each year until it hits 67.
Working part-time ensures that you have money coming in no matter what and gives you a sense of purpose and independence. It’s no wonder more and more old-timers are seeking employment today. It makes sense to keep working if you don’t have a large nest egg squirreled away or investments that will payout every month.
It’s a good idea to think about saving some of the money you are earning if you do have a part-time job. You can’t work forever and at some point, you will have to put down your tools, so to speak. Saving even a tenth of your paycheck will help you down the line when you are only receiving an SSA check.
IMPORTANT DISCLOSURES
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David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.