You may find that you want to go back to work, but this time on your terms. Work has its own rewards - the regular contact with people, the feeling of being needed, the knowledge that you’re contributing - and you may find that there’s still a place in your life for work. You may even be able to continue working for your previous employer, perhaps as a consultant or a part-time employee with valuable knowledge gained over the years. It may seem strange to think about reentering the work force just as you’re leaving it, but many people find that, without the pressure to earn a paycheck, work actually can be enjoyable. Others find that they’re able to take a job they’ve always wanted, even though the pay isn’t so great.
According to SSA.gov and WhiteHouse.gov, in the past, earnings in retirement over a certain amount adversely affected your Social Security benefits. In April 2000, the Senior Citizen’s Freedom to Work Act changed what happens when you work and receive benefits at the same time. While you’re working, your benefit amount will now be reduced only until you reach your full retirement age, not up to age 70. Use this formula from the Social Security Administration to determine how much your benefit must be reduced:
If you are under full retirement age (currently age 65) when you start getting your Social Security payments, $1 in benefits will be deducted for each $2 you earn above the annual limit.
In the year you turn full retirement age, $1 in benefits will be deducted for each $3 you earn above a different limit, but only counting earnings before the month you reach the full benefit retirement age.
Starting with the month you reach full retirement age, you will get your benefits with no limit on your earnings.
Some take jobs that don’t pay at all, deciding volunteer work is the best way to use their retirement hours. Volunteering allows you to use your life experiences, skills and talents to help others in your community. There are numerous organizations that need help: the Service Corps of Retired Executives (SCORE), the Coalition for Literacy, the American Red Cross, United Way, the Peace Corps, Volunteers in Service to America (VISTA) and more. If you decide to volunteer, choose something you enjoy and are familiar with; in that way, you’ll be volunteering some time while dealing with people who have interests similar to yours. Other possibilities include local hospitals, schools, scout troops or religious organizations.
