Many retired Americans feel pressure to return to work due to rising prices and the COVID-19 pandemic. However, returning to work while receiving Social Security benefits may have consequences. We’ll look at retirees’ challenges and what they can do to secure their Social Security benefits. Making a plan to safeguard your investments and discover new revenue streams can be facilitated by working with a financial advisor. What Retirees are Saying Many retirees are considering returning to work to cover their expenses. According to a recent CNBC All-America poll, 68% of retirees said they would consider coming out of retirement. Because of the COVID-19 pandemic, 62% of retirees reported leaving the workforce earlier than planned. Some older Americans are also taking advantage of their retirement benefits early. A recent survey by the Nationwide Retirement Institute found that 26% of Baby Boomers who are not currently receiving Social Security benefits plan to apply for benefits early while still working. There are more opportunities for older Americans looking for work. In the middle of 2022, the labor market continued to show signs of expansion. According to the most recent Bureau of Labor Statistics (BLS) nonfarm payroll employment report, 528,000 jobs were added in July 2022. Unretiring While Receiving Social Security Benefits In the short term, returning to work while receiving Social Security benefits will increase your monthly earnings. You’d also be able to keep track of your expenses without worrying about falling behind. In the long run, you should make plans before working while collecting Social Security benefits. If you do not, you may face an earnings penalty. As a result, your Social Security benefits will be reduced. Avoid Making These 3 Social Security Mistakes Before you commit to unretirement, you should think about a few things. To qualify for full Social Security benefits, you must know your full retirement age (FRA). If you were born between 1955 and 1959, your FRA is 66 and 67. Knowing your FRA will help you avoid paying a Social Security penalty if you choose to work concurrently. When making a final decision, avoid the following three Social Security mistakes:
- Not knowing your estimated Social Security benefits. Understanding the expected income from Social Security is essential for retirement planning. SmartAsset’s Social Security calculator can estimate how much you will receive when you retire.
- Applying for Social Security benefits far too soon. Filing at 62 if you do not meet the FRA will prevent you from receiving full Social Security benefits. Affected individuals have until 12 months from their Social Security application date to withdraw their benefits. Alternatively, you could pay the SSA for all your benefits to receive full benefits when you reach the age of 66 or 67.
- Failing to notify the Social Security Administration (SSA) before returning to work. Inform the SSA of your return to work so they can assist you in adjusting your benefit. While lowering your pay may not sound appealing, it will help you avoid an earnings penalty.
Social Security benefits are critical to everyone’s retirement financial well-being. You must receive full benefits for all your hard work throughout your career. If you want to work again while receiving Social Security benefits, you must notify the SSA. Completing this task will assist you in staying on track. Financially Successful Retirement Tips
- Retirement planning can be a daunting task. Many of us aren’t equipped to deal with it on our own. Using the free tool provided by SmartAsset, you can be matched with up to three local financial advisors. You can then interview your advisor matches for free to decide which is best for you. Get started now if you’re ready to find an advisor who can help you achieve your financial goals.
- Setting a retirement age can help you plan your savings. You want to ensure that you are saving at the appropriate rate to support yourself in the future. For this reason, participating in your company’s 401(k) matching program might be a good idea. Essentially, money owed to you can help with your long-term savings.
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Mike was born in Chicago, Illinois on August 13, 1946. He was brought up in thesuburb of Skokie on Chicago’s northwest side and graduated from Niles Township (East ) high school In 1964. Two years later he joined the US Air Force in November of 1966. After 2 years of Intense training he volunteered for Viet Nam and was sent toBien Hoa Airbase, which was 25 miles from Saigon, the nation’s capital. He volunteered for a number of especially dangerous missions on his days off, such as flying as a door gunner on a US Army helicopter and as a technical assistant on a psychological operation on an Air Force O-1E observation aircraft. Capping off his impressive accomplishments was winning the coveted Base Airman of the Month for March 1969, a feat which was featured in the Pacific Stars And Stripes newspaper read by every service man stationed in the Pacific theater of operations. After hisViet Nam tour of duty he was stationed at Luke Air Force Base in Glendale, Arizonawhere he met and married his wife, Lequita.He graduated from Arizona State University in May, 1973, and after a 30-plus year career as a financial advisor he joined a number of service organizations including Easter Seals and Valley Forward, sponsor of EarthFest. He was also involved with the National Federation of Independent Business and became the longest-serving chairman of the Leadership Committee ever. He spoke before the ( AZ ) House Waysand Means & Senate Finance committees. He then joined Disabled American Veterans ( DAV ) in September of 2015. He rose quickly through the ranks and became Chapter 8 Commander in May of 2019 where he served with Distinction for 3years before being “ termed outâ€. The next year, as Vice Commander, he won the title of National Champion Recruiter!
