Working after Retirement Rules – Most Important Things You should know

This article about Working after Retirement Rules will help you If you want to work after retirement for regular wages, you are likely to be in for a rude shock. Many of us want to keep working, knowing that we are likely to live well into our 90s, stay healthier than previous generations and we know that we will need more cash to keep paying the bills. Which is why a retirement job – such as an encore career in the nonprofit sector can be appealing.

Working after retirement rules
image credit

Working after Retirement Rules

For many, the chief reason given for wanting to continue working is often a desire to stay busy and intellectually engaged. However many experts are of the opinion that the unstated reason (to continue working) is that 401k advice is limited our savings are generally inadequate, although few want to acknowledge this publicly.

Can you become self-employed – such as a part-time bookkeeper for local small businesses?

Others want to have a little extra for travel – for example, those 70+ museums in Washington DC are a magnet for retirees.

Many retirees are able to combine some jobs-part-time with travel.  This is perfect if you have some financial resources and don’t have to work full time.  However solid permanent part-time jobs for seniors can be difficult to find as they are quite rare.

For Baby Boomers – those 79 million Americans born from 1946 through 1964 – the retirement reality is that jobs are scarce and many employers aren’t willing to hire older workers. And those who do land jobs often must settle for ones that are less fulfilling than desired.

It’s going to be messy when the realization (that most of us are going to run out of money) gets more air time with journalists and TV commentators. But then they will get pessimistic when they realize that senior citizen’s job opportunities are extremely limited.

But there is a solution – which I’m happy to share with you (see below).

Inadequate Savings

Of course, 401k retirement plans for the average person have never been enough, for even with $800,000 tucked aside, the standard recommended capital draw of 4% pa is supposed to last 20 years (if you own your own home 100%). That’s based on using $32,000 of capital each year, supplemented by earning 6% each year on the total investment.

But this financial calculation is not protected against inflation (think what a postage stamp cost 20 years ago) nor does this simplistic straight-line draw-down allow for unexpected medical or hospital bills, or the cost of special accommodation as we age.

Whatever savings we have, they have been hit hard by the stock market slump and the recession. Instead of counting on a pension plan to fund a (short) retirement as previous generations did, many boomers must rely on 401(k) plans whose values dropped along with the stock market.

In 2011, about 60% of American households nearing retirement age had 401(k) type accounts, however as they only began in the 1980s, the average balance on the payout is only around $80,000.

The problem is that this may only last for two or three years after retirement, which is why work after retirement is essential for most of us, and why to make money from home business offers definite appeal.

Part-time jobs for seniors don’t pay well, although if you do local job searches you could come up with some nuggets – such as buying a small local part-time business.

Previous Experience Needed for Work after Retirement

The jobs that are available as over 50 employment often require previous experiences, such as contract administration, health administration, teacher’s aide, specialty retail, general retail, bus driving, telephone sales support, nonprofit services delivery, and home care. But if you have the necessary previous experience, you may as well stay in your job, and defer retirement.

However, if you do delay retirement for a few years, you won’t have any zest for living that comes with a changed lifestyle, and you are still likely to run out cash in a few years. So you should attempt a midlife career change immediately.

Work after retirement is not a problem for the self-employed – think horse trainers or doctors – because they have found what they like doing, so there is never any need to think about retirement.

Realistic Solution

The solution to creating an above-average retirement income is to develop a self-employed mindset, and then actually become self-employed. This “project” just by itself will boost your zest for the living whenever you address planning for retirement.

His easiest way to start in finding work after retirement is – believe me – to take whatever hobby you have, and develop it into a “profitable hobby”.

The income from any money-making hobby will flow many years longer than if you have a job, and experts tell us that the mental and physical benefits that come with such activity are quite exceptional.

So if you want to work after retirement, start now – with whatever hobby you have, and build upon that.  You have to be different to exceed the average retirement income.

Take Whatever Hobby You Have

If you need extra money after retirement (and who doesn’t?) – Any hobby can be the basis for an online business using the technology from Site Build It! (That’s how I publish this small, simple and profitable magazine that you are now reading. This is my very own “profitable hobby”).

But you could find that you don’t need it as much. For example, budget travel can often be more satisfying than staying at five-star hotels.

Additional Inspiration

There is a Facebook community – Retirement Startups Group – which you should join to ensure that you’ll have ongoing additional inspiration.

Leave a Comment