Financial Income After Retirement

Retirement is not the end, but the beginning of your new life. It is a phase in life where an old chapter is closed and the person moves forward to face the next one. There are many things that people can do after retirement. He can do new things or learn new skills. He can be more active with the after retirement

But most people feel that the identity of the person is with the job only; and this makes it difficult for them to let go. Hence most people prefer to work after retirement. There are many ups and downs in taking up a new job for a person choosing do so.

One of the most important things which people always consider is financial income. Having a job gives revenue which can be then used to pay bills as well as other expenses. Instead of using the money one has saved from the retirement plan to pay any bills.

Another major benefit is that the new employer will give you health insurance too. A full-time employee can enjoy this and save the money earned from the retirement plan. But remember that part time work in most cases is not given any health coverage.

Also, one’s mental development is still sharp if he stays active. This makes the person feel important in the community.

Social security benefits are also a major factor. This is because the benefit payments are based on the top 35 earning years; and these could be higher if you work longer.

But there are downs too… The downs of working after retirement are that in some offices age discrimination does exist , although most of us tend to deny it obviously. Some people like to hire younger people since these people believe that younger people are more insurance funds

Pension problems may also arise if one retires and decides to get a new job. To avoid this, one must first check with the former employer before taking up a new assignment. Check if there will be any problems in accessing the pension plans should one choose to start work again. Hence, the best choice will be to get a lump sum pension from the previous employer. This sway, the funds will not be affected.

Keep in mind that by working again and increasing one’s income with the new job, a large percentage will be deducted for tax purposes.

And if one chooses to work again after retired, you will not be able to spend leisure time relaxing with friends as well as family.

The last con of working again after retirement is with IRA withdrawals. So you will still need to give minimum contributions at 70%. This means that more social security benefits one has, more he will be taxed.

Looking at all these points, one needs to decide what matters most. Only then should he decide whether he wants to sit back or he wants to take up a new job for himself post his retirement.

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