60: THE BIG 6-0 - PREPARE FOR YOUR FUTURE MEDICARE ELIGIBILITY
Returning to Work After Retirement
- Nobody wants to outlive your money which has caused more and more Americans to return to work after retiring. This is mainly caused by people having a need for cash due to increased expenses, market volatility, or the general concern of outliving your resources. No matter the reason for returning to work here are three financial considerations deciding to return to work.
Healthcare Coverage:
- Aging is an inevitable part of life which can directly lead to increases in healthcare expenses. Expensive out of pocket rates for private healthcare forces many individuals back into the workforce. Employer group healthcare plans are a fantastic way to decrease expenses.
Social Security
- Individuals are eligible to start collecting social security between 62-70, however the earlier you start these payments the smaller they will be and the longer you wait the larger they will be. The current Full Retirement Age (FRA) is set at 67 years old for anyone born in 1960 or after. If you decide to return to work before the Full Retirement Age, your social security benefit will be reduced by 5/9th of 1% for each month before the Full Retirement Age (Up to 36 months). If you exceed 36 months, then your social security benefit will be reduced 5/12 of 1% for each month after.
Pension Suspension
- If you received a pension from a past employer, it could be affected by a return to work. Every pension plan is different so it is important to double check your own plan and seeing how a return to work could suspend, forfeit, or reduce your current pension.