May Topic Of The Month: Working After Retirement: What You Need To Know

For many, the idea of retirement sparks images of vacationing, fishing, and relaxation. You’ve worked most of your life and are ready to earn social security and spend time enjoying your life. However, for one reason or another, maybe you’re considering going back to work. Perhaps you didn’t save quite as much as you thought you had, or boredom has set in and you’re looking for something to help pass the time. Whatever the reason, prior to going back to work, you want to make sure you understand the regulations on work so that your new employment earns you money rather than costs you.

Normal retirement age is currently between the years of 66 and 67 for those who were born after 1943. If you are collecting social security benefits and have not reached normal retirement age, you lose one dollar in benefits for every two dollars you earn over the annual limit (in 2018, this limit was $17,040 and changes annually). The annual limit continues to rise during the calendar year in which you will reach full retirement age. After this age, you lose one dollar in benefits for every three dollars earned over the limit until your birth month (this limit was $45,360 in 2018 and changes annually). During the month of your birthday of the year you reach full retirement age, you will receive full benefits regardless of your income. If you start receiving social security after you reach full retirement age, you will receive full benefits regardless of your earnings. And finally, if you start receiving social security early and you go back to work within one year, you are eligible to stop receiving those benefits and pay back what you’ve earned. You then regain the opportunity for full benefits later in life.

There are a lot of components to consider when deciding whether going back to work is the best choice for you. If you’re worried about the financial implications of this decision, the best choice you can make is to consult your financial advisor. Call Orsinger Investment Group, Inc. at (724)588-9067 to discuss your future retirement plans!