Feb 28, 2021

Working After Retirement

Many people seek to work part time after retirement.  But be careful.  Unless you have reached you full retirement age when you can earn as much money as you want and not be penalized, if you retire earlier, you will be penalized.  If you earn too much, you will be forced to give back some of your monthly Social Security payments.  And, if you earn too much, you could end up in a higher tax bracket related to monies owed for Medicare, which is means tested and specific to 401K and other pension distributions.   

So before you take a job after retiring, check with your accountant to see if it makes sense.  Obviously, if you are going to net less money overall by making a few bucks, better to volunteer your time at non profits that you support if you are just looking for something meaningful to do.  

Maybe a better strategy related to money management after you retire is cutting your living expenses to achieve the same end result.  Downsize your home.  Move to a lower cost of living and preferably no income tax state to reduce any tax burden you may have.  Consider your options.  At Paragon Home Resources, we work with many people every year moving to retire usually from a cold place to a warm place.  However, proximity to family and tax considerations are also big factors in choosing where to retire.