Shift into Retirement with Part-Time Work

Submitted by John Strassman−

Retirement can and should be a stimulating time. It can be a time of reinvention and expansion. Some people switch to a part-time job or pursue self-employment for a few years before settling into a more traditional retirement. If making your finances more robust is one of your motives, working part-time can be an effective way to create additional income as you adjust to retirement.

FINANCIAL: Every year you work may improve your earnings history, which can increase the amount of Social Security you receive. These earnings may allow you to delay taking Social Security benefits, which increase by 8% each year past your full retirement age, up to age 70. And even if you are 66+ and collecting social security, you can earn up to $15,720 annually before it affects your benefits. Discover the specifics about age, imposed limits, and earning requirements when collecting social security benefits.

DAILY RHYTHM: You may prefer to continue working (even part-time) as long as you can because it helps ease the transition into retirement. When you retire, there is a distinct change in your daily rhythm and pace. This “encore” phase of your career gives you an opportunity to showcase your skill set or indulge interests that didn’t receive attention during your working years. You may find yourself working more than part-time because you are so valuable. Setting boundaries for your availability is key to pacing yourself.

LOCATION: Most likely, you have an established network in your current location. Friends, family and professional associates can provide introductions for potential supplementary income. This is the time to specialize in what you truly love or potentially dive into an entirely new industry you’ve always been eager to learn about. Investigate the stores that you frequent, the local library, or local college and business networks. Have you always been interested in unique coffee roasts? Or first-edition books? Perhaps there’s a nearby café or rare book-store requiring assistance. If you are receptive to a move, here are a few recommended locations when planning for a working retirement.

SOCIAL INTERACTION: Traditional retirement can be a wonderful experience for people who have their finances in order and plans for hobbies and volunteer work so it may not be necessary to work. But there are benefits of a part-time job as you shift into retirement and many reasons people work in retirement. Often part-time jobs come with social perks, such as chatting with customers or clients and invitations to company social events with colleagues.

PURPOSE: Working provides purpose and a way to be of service while staying mentally and physically engaged. Even if you secure a job where you work from home, there’s something that happens when you step into your office or boot up the laptop and get to work. There are as many types of part-time jobs in retirement as there are retirees. Ask yourself about your particular priorities and needs. Do you need to be social? Do you have years of business acumen that could benefit startups or young entrepreneurs? Do you prefer a flexible schedule? Flex Jobs offers a number of flexible, work-from-home opportunities.

All these considerations will help guide you whether it’s a financial cushion you seek or because you truly love working. Understanding how this decision will impact you will help you make informed, deliberate decisions to improve your life both now and in the future.

John Strassman, CFPhas been registered and practicing as an Investment Consultant since 1987. John is convinced that you, as a client, deserve a Personal Financial Advocate grounded in his commitment to protect your family’s future by growing your living legacy. As his client, you receive a professional confidant to share your aspirations and concerns, and a long-term relationship that becomes increasingly attuned to your interests. The insights on investment options and strategies are aimed at preserving and growing your wealth. His goal is that you will gain a sense of comfort and the security of control over your financial legacy and future, regardless of market conditions and economic cycles. Let’s Connect & Start Building Your Legacy! www.yourlegacymatters.com

Investing involves risk, including loss of principal. Securities offered through LPL Financial, Member FINRA/SIPC. Financial Planning and Investment Advice is offered through Financial Advocates Investment Management, a Registered Investment Advisor, DBA Strassman and Associates Wealth Management and a separate entity from LPL Financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.