Work Beyond 65
Working past the age of 65 has become more common, as life expectancy rates continue to grow up and seniors feel healthy and motivated to continue contributing to the workforce. Economic factors are also a consideration. With retirement getting harder to save for and the cost of living more expensive, many people 65 years of age and older choose to continue to earn income from working. Work beyond 65 by staying in your current career, choosing a part time job or exploring a new career path, and plan your finances and Social Security and Medicare benefits carefully.
Steps
- Decide whether you want to stay in your current job. This might help you financially, since you may be already covered by heath benefits and contributing to a retirement plan.
- Remember that when you change jobs, you often need to wait from 30 to 90 days before you can take advantage of benefits and paid time off.
- Consider part time work. If you want to keep working after 65 but you do not want to keep your current schedule, reduce your hours.
- Talk to your employer about the possibility of working less hours. This might mean giving up some responsibilities.
- Work part time somewhere else. Keep yourself busy and earn some extra income by looking for a new part time job. Some people 65 and older enjoy doing work they were never able to do before. For example, work in a flower shop, do some consulting or get employed as a substitute teacher.
- Keep up with training opportunities. In order to remain employed after 65, you will need to be aware of new technologies and employment practices.
- Take classes, read blogs and stay current in your field. Continue networking. Not only will you benefit from expanding your contacts, you might be able to serve as a mentor for younger professionals in your field.
- Make a decision on Social Security. You can begin collecting benefits at the age of 62, but there will be limits on what you can earn without limiting the amount you can receive in Social Security.
- Earn as much income as you want once you reach full retirement age (currently 67 for most people). At 67, you can collect your full Social Security benefit regardless of your income.
- Postpone your Social Security payments if your earnings exceed the cutoff for a given year ($14,640 in 2012) and you have not reached full retirement age.
- Enroll in Medicare. Three months before you turn 65, contact the Social Security Administration (www.ssa.gov) to sign up for Medicare.
- Select your Medicare benefit based on your employment and income. You can choose the full Medicare benefit and work anywhere - including places that do not provide health insurance. Or, if you are keeping your full time job and your health benefits, use Medicare to supplement what you already have.
- Leave your retirement savings alone. If you are going to continue working after 65, try to live off your income and any Social Security benefits.
- Remember that you are required to begin withdrawing money from any traditional IRAs you have once you turn 70 1/2. If you do not withdraw at that age, you will face tax penalties.
Tips
- Make sure you really love your job. Whatever you are doing when you work past 65, make sure it is something you enjoy and find rewarding. Your job should be worth putting off retirement.
- Work with a financial planner or a tax specialist. A professional can help you manage your money, plan your retirement and figure out how much Social Security you should collect and when.
