 Are
you thinking about retirement and want to pursue a second career after
you retire? Want to continue working and earn extras after retirement?
Well, if your answer to these questions is 'yes', then you are not
alone. You share something in common with those millions of retirees in
the world who have considered a postretirement work.
Yes, several reports have revealed that about 1.2
millions of Canadians alone, age 55 and older, still work full time or
part time in today's highly demanding job industry. It was viewed that
their number will increase as the days go by, probably up to 1.7
million. See how it is becoming popular? Well, note that this given
statistics somehow shows how the people's understanding of retirement
has changed through time.
Retirement is viewed conventionally as the end of
something. For long years, many people think that when they retire,
they are ending their career in life and just subject themselves to a
static kind of life in which they just need to sit and watch their
grandchildren play. That's not always the case. As a matter of fact,
retirement is not about "ending", it's about beginning or starting
something worthwhile. That is how the optimists view it, and it's nice
to know that such kind of perspective will somehow help us move on and
continue with life even after we retire.
If you want to feel like being left with
everything great, even after you left your beloved work force, then
start thinking that retirement is not merely the end of your work. It
should not be the end, but the start of a new career. Yes, you can
continue working even after you retired from the first job you had
So what then is working after retirement all
about? What are some of the reasons that people are considering it? How
should you start working after retirement? Are there any helpful moves
to take? How to find a worthy job after retirement?
Find out the answers to such questions by reading the following:
Working after Retirement: The Reasons
Working after retirement as implied earlier is
not a new concept. Millions of retired adults have already considered
it, and that millions of them are currently working in the industry and
earning some bucks in addition to their retirement savings.
There are a number of reasons that encourage
retired adults to continue working after their retirement.
These
reasons may include the following:
- The aim to make even just a little extra money.
- To help others and to prove to yourself that you still have the guts to do something great and worthwhile.
- To meet certain specific needs that can't be met by what you saved from your retirement.
- To have something to be focused on even after retirement.
Note that according to some studies, most of the
retirees work after retirement because of the third reason. That's a
bit unfortunate for them. But, it doesn't mean that every time the idea
of working after retirement occurs, the third holds the primary reason.
The truth is, you can do something to make your decision based on the
first, second or the fourth reason, and there is no other better
solution than a good planning.
Yes, you heard me right. Working after retirement
involves planning. As a matter of fact, planning for it is always a
part of the financial planning and this is because a job during a
retirement could pose either a positive or negative impact to whatever
is attached to it, be it your retirement savings or your benefits. The
effect, nevertheless, can be positive or negative depending on how you
plan for it.
Perhaps the most significant thing to focus on
when it comes to the possible effects of working after retirement is
your retirement income. Most of the impacts can typically be found
here.
So how does working after retirement affect your retirement income?
There are two common questions to be answered here, and these involve:
- Could the Social Security benefits entrusted to you be lost if you consider working after retirement?
- Will your pension be affected?
If you want to know the answer to such questions, please read on.
How a Job after Retirement Affects the Retirement Income
Many people asked what if they will continue
working after retirement and find their retirement benefits to be
shrinking. What if they will find out in the end that they are denied
for some of the retirement benefits to which they are supposedly
entitled to take? Hmm...to tell you honestly, that sounds possible. This
is not to terrify you though and to discourage you from pursuing a new
career after retirement.
In the first place, it is significant to note
that there are certain rules that govern the person's eligibility to
obtain the full retirement benefits even if he or she is earning from
his or her new career after leaving the first work force. It is typical
that once you reach the full retirement age, you will entitled to
receive the full retirement benefits offered by the Social Security in
spite of how much you are earning from your new career.
The real matter
then comes if you retire and receive the benefits earlier than your
full retirement age, in which case you are subject to two certain
conditions:
- If you have not
reached your full retirement age, about $1.00 in benefits would be
deducted for every $2.00 you earn from your new job over the annual
limit.
- If you are in the year you will
reach your full retirement age, about $1.00 in benefits would be
deducted for every $3.00 you earn from your new job over a different
limit.
With such conditions, it is then vital that you
know exactly if you've already reached your full retirement age or not
yet. However, if you are not sure about your full retirement age, there
is no other better way you can do now than to contact the Social
Security. The Social Security can now be accessed online through their
site: SocialSecurity.gov.
So that is how working after retirement affects
your retirement income. But, there is more to that. Working after
retirement also has particular negative effects to your savings, so it
is better to know all these effects before you start jumping back into
the work force.
Here are the downsides of working after retirement in terms of income:
- Considering a new
job after leaving the work force could affect any type of pensions you
could receive from the employers you had before you retire from work.
If this is the case, it is wise to contact and check with your company
to see your retirement benefits might be affected knowing that
companies have their own policies regarding their pension benefits.
- There
is a great possibility that when you consider a new career after
retirement, such condition could place you in a higher tax bracket.
What I am trying to say here is that when you start withdrawing your
IRA benefits, as well as the 401K benefits, you could be paying more
taxes than you had planned. Worse is that you can cause a greater
portion of your Social Security benefits to be subject to taxes and
this is highly possible depending on how much you work.
So those are the possible ways of how working
after retirement affects your retirement income and benefits. As you
may notice, all of them are centered on the financial aspects of going
back to work after your retire. Well, this time, let's go beyond that
aspect and consider the ways on finding a job after retirement.
Tips for Finding a Job after Retirement
There is one particularly fact to note here -
looking and finding for a job after you retire from your first choice
is completely different than while you were employed. This is a truth
for all times. So now, if you are thinking of finding the best second
career in your life, expect it to be different than while you were in
the work force. A lot of things that need to be considered are already
involved here, and your age is just one of them.
As you may like to think, age doesn't matter when
it comes to job search. However, in today's highly competitive world,
that's not always the case. In fact, a so-called "age discrimination"
already exists and that many of those who have retired and decided to
jump back to the world of work are to some degree affected by it.
The age discrimination exists as a result of the
many biases that the employers have set. One of the greatest biases
they've made is the idea that older employees take longer to train and
get up to speed than the younger employees. Well, this is not always
the case and this should not be the case. Older people still have a
place in the working industry, and even though it would not be easy to
find employment after you've retired, just think positively and hope
for the best. You can even do something to stack the odds in your
favor, after all.
But, how?
One of the best tips is to look at yourself in a new light. So in
spite of the age discrimination out there, don't focus much on your
age. The best thing you can do is to think about your skills, talents
and strengths that you have to offer. Start asking yourself some
questions that may help you think in the best positive way. Try to
discover what your skills are; what qualifications you are holding;
what kind of experience you may have that may help you succeed in your
chosen career; how much time you are willing to spend to know
everything about the nature of the work; or if you are willing to
undergo trainings and studies that could help you develop your skills
and experiences in the end.
Once you've answered all those questions, start
planning. Build up a resume that looks like professional. In there,
market all your skills and update your resume in the best possible way.
Ask a friend or someone close to you to imitate a job interview and see
how you perform during the interview. Most of all learn some of the
jargons that employers tend to use. For example, note that the word
"transferable skills" refer to those skills you've acquired in a
particular situation and can be used in another.
Perhaps the best place to find it is may be with
your current employer if you are looking for a part-time job after
retirement. As what many experts have said, "Stay where you are". Well,
this suggestion basically stems from the findings that 3 out of 4
companies in the world would allow older employees to reduce their
hours rather than take full retirement. However, many of these
employers include the retirement job option as part of their formal
employment policies. Along with this finding, it was noted that about
26% of the employers that would permit older employees in their
peripheries to decrease their hours before they consider retirement
would not change the health benefits that the employees are entitled to
take, and 40% of the employers would permit the employees to consider
pension benefits in spite of whether they work part time at the
retirement jobs or not.
It is also a good idea to consider consulting.
According to some retirees, this option is ideal for those who aren't
so successful in making their way to a specific company and who have
the money to support the expenses needed for consulting. Well, what
makes this option great for older retirees is that they already have
the experiences needed in this kind of venture. However, to succeed in
this area, you need first to get a business license for your short term
consulting or freelance services. Also, you need to keep records and
file taxes as a business on the income you gain.
Lastly, it is better to consider some of the
government programs designed to support the seniors. Yes, there is such
a thing. These programs are typically set up by the federal and state
governments to provide job training and employment services to seniors.
Perhaps one of the most well-known senior programs available in the
United States nowadays is the Senior Community service Employment
Program (SCSEP), which is but a program administered by the United
States Department of Labor. The aim of this program is in fact to help
the low income 55 and older people to get ready for a variety of
community service employments.
Today, as more and more older people considering
working after retirement, more and more jobs are becoming available.
Many companies are now finding it necessary for them to start thinking
seriously about hiring more older workers, and this is no doubt a great
news for those who are thinking about retiring and starting a new
career after retirement.
So that's it! No matter what kind of job you have
found, what matters in the end is that you are happy with it. After
all, your retirement is meant to be spent gloriously.
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