I’m Retired, But Thinking About Going Back To Work. What Do I Need To Know?
Social Security At A Glance
When you retire, you may start collecting Social Security benefits. The amount of your benefits is based on your earnings during your working years. The more you earned, the higher your benefits will be.
You can start collecting benefits as early as age 62, but your benefits will be lower than if you wait until your full retirement age. Your full retirement age is 66 if you were born between 1943 and 1954. It gradually increases to 67 for those born in 1960 or later.
If you wait even longer to start collecting, your benefits will increase. You can start collecting benefits as late as age 70.
Regarding Your Re-entry Into The Workforce
There are a few things to consider before returning to the workforce after retirement. First, evaluate why you want to return to work. Is it for financial reasons, or do you miss the structure and social interaction of a 9-to-5 job? Once you know your motivation, you can start to look for work that meets your needs.
If you’re returning to work because you miss the structure and social interaction of a 9-to-5 job, you’ll want to make sure you find a job that’s a good fit. Consider your skills and interests, and look for a job that will challenge and engage you. You may also want to look for a job with flexible hours or the ability to work from home, so you can still enjoy your retirement lifestyle.
If you’re returning to work for financial reasons, you’ll need to make sure you’re getting the most out of your Social Security benefits. Depending on your age, if you earn more than specified annual thresholds, your benefit dollars per month will be reduced.
Benefit Reduction Thresholds
If you are younger than full retirement age, your benefits will be reduced by $1 for every $2 you earn above the annual limit. For 2022, that limit is $19,560.
If you reach full retirement age during the year, your benefits will be reduced by $1 for every $3 you earn above a different limit. For 2022, that limit is $51,960.
In addition, if you are still working, you will continue to pay into the Social Security system, which will give you credit for additional benefits when you fully retire.
However, the amount of your benefits will never be completely eliminated, no matter how much money you earn.
Your Decision To Re-enter The Workforce
Whatever your reasons for returning to work, make sure you do your research and take the time to find a job that’s right for you. With a little planning, you can make a successful transition back into the workforce.
It’s important to note that this reduction in benefits only applies to the portion of your benefits that are considered ” taxable.” About 85% of Social Security benefits are taxable, so this reduction could have a significant impact on your overall income.
If you’re still working and receiving Social Security benefits, be sure to check with the SSA to see if your benefits will be reduced. You can also use their online calculator to estimate your benefits.
Lastly, If you are receiving Social Security benefits, you must report any earnings you have from a job. This includes money from self-employment, part-time work, or full-time work. You can report your earnings by calling the Social Security Administration at 1-800-772-1213.