Showing posts with label working after retirement. Show all posts
Showing posts with label working after retirement. Show all posts

Wednesday, July 27, 2022

Financial Considerations for Unretirement - Working After Retirement


Millions of retirees have decided to return to work within just a few years after retiring.  There are many reasons for this, including the high cost of living, inflation, and sometimes simple boredom.  They may return to the job they did before, or try something new.  They may go to work for someone else, or try their hand at self-employment.  Whatever they decide to do, there are some important financial considerations you need to think about anytime you increase your income during retirement.

According to a 2022 report from the Bureau of Labor Statistics, roughly 500,000 people over the age of 55 have re-entered the workforce in  the previous six months.  This represents a significant increase over similar periods of time in the past. A 2018 survey by the Rand Corporation revealed that about 40 percent of American workers over the age of 65, who were still employed, had previously retired at least once in the past!  Returning to work after retirement is a trend which has been increasing for some time.

The decision to return to work late in life can have an impact on your Social Security benefits, pension and tax-deferred retirement accounts and, possibly, your Medicare coverage.  What do you need to consider?

Benefits of Returning to Work after Retirement

There are, of course, a number of benefits to returning to work in your 60s and 70s.  The most obvious one is the increase in income, which can also help you stretch your retirement savings and make them last years longer.  In acknowledgement of this benefit, Congress passed the SECURE Act in 2019 which allowed seniors to push back the age when they must begin taking mandatory withdrawals from their tax deferred 401(k) and IRA plans.  Prior to the SECURE Act, retirees had to begin the required withdrawals at age 70 1/2.  Now they do not have to make the withdrawals until age 72.  This allows their savings to grow a little longer.

Working after retirement also has mental and emotional benefits.  Seniors who work later in life report that they feel a sense of purpose and are more socially connected.  There is also some evidence that working may also help improve their cognitive health.

If you are wondering what types of jobs work best for retirement, you may want to read "What Jobs To Do After Retirement."  (Ad) It is full of great suggestions to help you find the best retirement job for you. 

Cost of Starting Your Own Business 

As I discuss later in this post, you may also want to start your own business. Depending on your background, you might do some tutoring, become a bookkeeper for a local business, write a book, or get paid to coach a local children's soccer team. 

If you are creative, you might also want to sell your products online, including opening your own shop on a site like Etsy.  It will take some effort and computer skills but, if you are patient and willing to put in the time and initial investment in your products, it could be worthwhile for some retirees.  You will have some expenses if you decide to start a business, and you will have to be good at keeping tract of all your expenses, because many of them will be tax deductible. However, if you have some money to get started, and you are good at keeping records, this could be a good option for you. 

If you want to see an example of an Etsy store and get more ideas of what you could sell, check out my Etsy store at:

There are many ways you can earn money after retirement, either through paid employment, or by starting your own business. If you do, though, how could it affect you financially?

A Retirement Job Can Affect your Social Security Benefits

Depending on the age when you return to work, and the amount you earn, your post-retirement job could either increase or decrease the amount you receive in Social Security benefits.  

If your job enables you to postpone collecting your Social Security benefits for a few years, your benefits will be higher when you do begin to collect them.

On the other hand, if you are already receiving benefits when you go back to work and you are younger than your full retirement age of about 67, your benefits will be reduced by $1 for every $2 you earn over 18,960. The year you reach your full retirement age, the government will deduct $1 in benefits for every $3 you earn over $50,520.  These limits are increased regularly, so the actual limit you have could be a little higher.  

Fortunately, once you reach your full retirement age, your earnings will not reduce your benefits, and you can earn as much as you want.  This issue only affects people who begin to collect Social Security in the years before they are eligible for full Social Security.  If you plan to keep working after retirement, this is a good reason NOT to collect your Social Security too soon.

Working Can Affect your Medicare Benefits

If your new job provides health coverage which is approved as your primary healthcare coverage, you can drop your Medicare plan and re-enroll at a future date without a penalty.  However, if you drop your Medicare plan and do not have acceptable employer coverage, you will have a financial penalty when you re-enroll in Medicare, and that penalty will last the rest of your life.  Make sure your new company plan is approved as an alternative to Medicare. Talk to the HR office at your firm, or discuss your situation with a Medicare broker.

In addition, if you drop your current Medigap supplemental insurance plan and later develop a preexisting condition, you may find it difficult to find an affordable Medigap plan later in life.  As a result, some people keep their Medicare plan, even when they are covered under an employer plan.  As I mentioned, it is advisable to speak with a licensed Medicare broker before you make any changes, so you protect yourself now and in the future.

A Retirement Job Can Affect your Pensions and 401(k) Plans

If you are collecting a pension from a former employer and go to work for a different employer, you can usually continue to collect your pension. However, if you receive a pension from a former employer and go back to work for the same employer, there could be some restrictions on working and receiving a pension at the same time.  You could have a waiting period, or might only be allowed to return to your former job part-time, if you want to continue to collect a pension while working. The employer may also suspend your pension temporarily while you work for them. You need to check these concerns out before making a decision to return to your old job. 

Despite these issues, the benefit of returning to work with a former employer is that you may be able to continue to add more contributions to your IRA or 401(k) plan, which will eventually increase what you receive in payments when you finally stop working for good.  

Ultimately, the decision to return to work is up to you.  There are definite benefits to working later in life, both mentally and socially, although you do have to be careful to avoid the pitfalls.  Discuss them with your financial advisors and make sure you take all the necessary precautions before making a final decision about returning to work.  

You may also want to get some ideas from the book "Working After Retirement: 69 Post-retirement Jobs That Can Change Your Life."  (Ad) You may discover some jobs you never even considered before, which could enable you to improve your retirement both financially and socially. 

Examples of Ways to Start Your Own Business

As many of you know, if you follow this Baby-Boomer-Retirement, I have written this blog as a "side-gig" since before I retired nine years ago, and I continue to earn a small income from the advertisements you see here.

However, I have also added a newer business which nearly anyone could do to enhance their income.  I have started an Etsy store, called DeborahDianGifts, with products I personally design, but have professionally manufactured and drop shipped to people who make a purchase. 

If you like to make or design things, whether it is jewelry or wooden cutting boards, you could also list you own creations for sale on Etsy.  

If making or designing products is not for you, some people prefer to resell items from their homes or local thrift stores on Ebay or Shopify. Others provide various services on Fiver, by offering to do things like create a webpage or design logos for you.  Having your own business comes with some responsibilities, but it also has the advantage of allowing you to work your own hours, while still supplementing your retirement income.

Details on this lovely Dolphin Tote Bag

This is an example of just one of well over 100 items I sell on my Etsy store. It is a tote bag I designed using an underwater photo of a mother dolphin with her baby.  There are many ways that people are earning money online but, as mentioned above, you have to run it like a business and keep track of your expenses and tax deductions.

You may discover that opening your own little shop is something you can do, too.  Whatever you decide to do, I wish you luck in finding a retirement job or starting your own business. Just make sure you check out the financial impact as you embark on this new adventure. 

You can find more examples of tote bags, t-shirts, jewelry, framed photos, coffee mugs, gifts for retirees, LGBTQ clothing, and other products on my Etsy Store, DeborahDianGifts. 

Check it out at:

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post. 

If you are interested in learning more about saving money, financial planning, Social Security, Medicare, where to retire, common medical issues as you age, travel and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission at no extra cost to you.

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Photo credits: Pixabay and Amazon book covers and DeborahDianGifts on Etsy

Friday, June 4, 2021

Semi-Retirement - The New Retirement Model for Baby Boomers

Many Baby Boomers have reservations about completely ending their careers at an arbitrary age during their 60s. They may feel they do not have enough money saved to last the rest of their lives, especially if they come from a long line of people who lived into their 90s. They may also worry about the social isolation they will feel when they no longer spend time with a group of co-workers on a daily basis.  Some fear they will be bored and have nothing to do, particularly if they do not have hobbies they look forward to enjoying after retirement.

As a result of these concerns, this week I particularly appreciated receiving a guest post from the authors of, another website which strives to keep Baby Boomers informed, as we all navigate the complicated process of retiring.  Their post is on how to pursue "semi-retirement," so we can gradually ease ourselves into full retirement at some point in the future.

If you are feeling a little uncertain about what the future holds for you after you retire, you may want to read "Shifting Gears to Your Life and Work After Retirement."  (Ad) It has some great advice and will help you face the future with greatr optimism.

Below is this week's guest post:

Semi-Retirement - What is it?

by the authors of  

Many Baby Boomers choose semi-retirement over full retirement. It is a trend which continues to grow. There are many compelling reasons for making this choice but, while there are advantages to semi-retirement, there are some drawbacks too. Let’s take a look at what semi-retirement is and review some pros and cons on the subject.
What is Semi-Retirement?

Before we discuss the pros and cons of semi-retirement, it is important to know what it is. Semi-retirement comes in different forms but, basically, when a person chooses to semi-retire, they still plan to work but far fewer hours. The most common reason for the decision to semi-retire is to improve cash flow to meet financial obligations, and/or pay for luxuries like travel or investments. But there are other reasons too.
Pros and Cons of Semi-Retirement

People who do not fully retire do so for two reasons. For some people, full retirement leaves them feeling bored and depressed. Working gives their lives purpose and a focus, as well as additional cash to spend or save.

The second reason revolves solely around money. Someone might want to fully retire, but cannot afford to. Others want to maintain a steady income throughout retirement.

In your first few years of retirement, extra income can make life easier and provide you with a better standard of living. So, at least for a while, it makes sense to transition to semi-retirement before full retirement.

Semi-retirement gives Baby Boomers the freedom to work when they want, live where they want, travel, and still produce an income.

Semi-retirement sounds like heaven on earth for some people, but it does come with potential disadvantages. Before you jump into semi-retirement, you want to consider the negatives too.

Should You Start Your Own Business in Retirement?

The first factor to consider is particularly for those who want to start their own business. 
Some people decide that retirement is the time to become their own boss, start a small business, and they take this opportunity to do it! You need to realize, however, that when you first start, it becomes easy to work more hours than you anticipated, or more hours than when you worked at your job full-time. However, some people may find that this motivates and excites them, and working many hours at the start does not bother them. Keep in mind that if your overall goal is to work less, starting a business might not be the best option for you, especially if you are a hard worker.

You might want to avoid starting a business if you need to use a large portion of your savings to finance the new operation. There is no guarantee your business will become successful and generate a profit. You do not want to end up losing money which was intended to help you get you through your retirement. If you are intent on starting your own business, make sure you set a strict budget and stick to it. Do not overspend, unless you are sure you can afford it.

The other potential drawback involves your time. You may come to regret all the time you spend working, when you could have chosen to spend more time with your grandchildren, friends, or family members.

What Jobs Can a Semi-Retired Person Do?

Instead of starting your own business, you may decide to work fewer hours at a regular job. In fact, you may already work at a place which is willing to let you reduce your hours to part-time, so you can keep your job and semi-retire. If you are not looking for a change (other than a reduction in hours) this can be a great option. Unfortunately, this option is not available to the majority of people, so they need to look for other possibilities in finding a semi-retirement job. 

One of the most popular options for those looking to semi-retire is becoming a real estate agent. Working as a real estate salesperson allows for flexible hours and, depending on where you live, it can produce a significant income. It is also fairly simple for Baby Boomers to become a real estate agent.

Consultant jobs are another popular choice for those who choose the path of semi-retirement. The job comes with incredible flexibility, and ideally being a consultant will allow you to work as much or as little as you want. It also allows you to pass your decades of experience onto another person who is in the industry where you built up your career.

These are not the only jobs you can do during semi-retirement. You could set up several small businesses or find a part-time work-from-home job. For example, you could start a blog about your experiences or life. Creating an online store using drop-shipping from a major vendor is another example. You could also give music lessons or tutor people in other skills you have, for example offering cooking classes in your home. You could even start an business where you offer to share the expertise you have accumulated from your career over the years.

Final Thoughts

The decision of whether to semi-retire or completely retire is not an easy choice. There are many things to consider which can impact the final years of your life, depending on the route you take. You may lose time or money during the first phase of semi-retirement if you start a new business. You also need to realize you will have less free time if you decide to continue working. However, semi-retirement can help you transition into full retirement and generate extra income which will come in handy when you finally do fully retire.


Baby Boomers themselves, David and Alice Goldstein founded a few years into their own semi-retirement. They publish articles which focus on the practical needs of Baby Boomers born between 1946 and 1964.

For more great job ideas for workers at the end of their career, read "The Encore Career Handbook: How to Make a Living and a Difference in the Second Half of Life." (Ad)

You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.
If you are interested in learning more about retirement, Medicare, Social Security, common medical issues as we age, financial planning, where to retire and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission to support this blog, at no extra cost to you.

You are reading from the blog:

Photo credit:  Licensed from Canva

Sunday, September 15, 2013

More People Working After Age 65

Our concept of retirement has changed drastically over the past few years.  In fact, some people don't seem to be retiring at all ... and certainly not at the traditional age of 65.  The local newspaper for our retirement community, "The Laguna Woods Globe," reported this week that by 2019 approximately one in five seniors will be working either full or part-time after the age of 65.  Already, the number of workers in that age group has increased from 4.5 million to 7.5 million in the past ten years, according to the U.S. Bureau of Labor Statistics.  That's a whopping 60% increase in a decade!

Reasons Why Seniors are Working Longer

The article in "The Laguna Woods Globe" listed several reasons for this increase in the number of senior citizens who are still working, and I have added a few more reasons we have heard from some of the retirees we know who still work.

First, many Baby Boomers have not done a good job of retirement planning.  As a result, they are unable to survive on their low Social Security benefits, yet they have no savings to provide additional income.  Their only solution is to keep working as long as they possibly can.  The extra years of work also increases the size of their Social Security payments, so the benefits from working longer can help in several ways.

Second, even when people have saved some money towards their retirement, they may not have expected to enjoy such a long life expectancy after retirement.   When I was young, we were told that the average life expectancy was 72, which meant we only anticipated living a decade or less after we retired.  As I got older, life expectancy increased to 78.  Now that I am in my 60's, I have read that the average life expectancy can be as high as age 88 for people who are healthy at age 65.  That means you may need enough savings to last 25 to 30 years after retirement ... and even more if there is a lot of longevity in your family.  Many people who thought they were prepared for retirement are discovering that they failed to save enough.

Third, a number of companies that used to provide pensions to their employees have reduced or eliminated this benefit.  People who thought they would be able to live off the combination of their pension and Social Security may have much less retirement income than they expected.

Fourth, boredom is another reason for continuing to work past the traditional retirement age.  Some people use this time of life to pursue a career that they always dreamed of ... like becoming a blogger!  Others may continue to work part-time in their former careers, such as becoming a substitute teacher or business consultant. 

Fifth, many Baby Boomers are still healthy and they simply do not want to sit at home.  They would rather work and use the extra money to travel and have fun.  As one person in my local newspaper said, she doesn't need the money, but it sure "comes in handy."

Finally, sometimes seniors are involved in meaningful careers that they do not want to give up.  Many actors and religious leaders, such as the priests in the above picture, continue to work long past the traditional retirement age.  A nun I know is almost 80, yet she still travels all over the world leading spiritual retreats.  I have attended a few of her retreats, and she is still very energetic and a dynamic speaker.  One of the women in my bookclub is married to a physician.  She says he intends to work as long as he possibly can, because he believes that what he is doing contributes to society and he enjoys it.  Isn't that the best reason of all to keep working past age 65?  My own husband is still working, even though he is almost 69.  He really loves his job!

If you plan to work past age 65, I would love to hear the reason you made that decision.  Please feel free to mention it in the comments section of this article.

Meanwhile, if you are doing your retirement planning, you may be interested in reading some of the other articles from this blog.  They are listed alphabetically by topic with links in the the index articles listed below:

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement

You are reading from the blog:

Photo of elderly priests is courtesy of

Source of Statistics:

"Working Late," Laguna Woods Globe by the Orange County Register, August 29, 2013.

Friday, March 15, 2013

Money and Financial Planning for Retirement

Since the beginning of this blog, a number of posts have been written about money and financial planning for retirement.   In fact, these posts have been among the most popular that I have researched and written.  The posts, linked below, include topics such as how to construct an annuity ladder, how to access your social security information, how much money you need to retire, choosing an executor of your will, and ways to earn money after retirement.

In addition, the article links below will help you access information on long-term care insurance, budgeting, financial facts about baby boomers, scams that are directed against senior citizens, and more.

Index of Financial Articles on the Baby Boomer Retirement Blog

2014 Social Security Raise Expected to be Tiny

Age Deadlines for Retirement Planning

Alternatives to Long Term Care Insurance

Amazon Savings Tips - How to Save Money Shopping Online

Are You Too Young for Retirement Planning?

Average Retirement Age in the US for Boomers

Awesome Work-From-Home Jobs

Be Careful at Black Friday Sales

Be Prepared for Emergencies

Best Companies Offering Jobs for Seniors

Beware Coronavirus Scams: Fraud is Increasing

Beware of Advance Pension Loans

Beware of Collectible Gold Coin Investments

Budgeting for Your Golden Years

Camper and RV Travel Jobs - How to Survive Financially on the Road

Casinos Encourage Gambling Addiction in Senior Citizens

Charitable Deductions and U.S. Estate Taxes

Choose a Financial Planner or Advisor with Experience 

Choosing an Executor of Your Will 

College Scholarship Tips for Grandchildren

Common Problems with Inherited Homes

Consumer Financial Protection Bureau for Older Americans

Credit Scores and Retirement 

Crimes Against the Elderly

Crimes Against Senior Citizens 

Handling Your Money and Bills in Retirement - How to Find Help

Hidden Costs in Assisted Living Facilities

Housing Costs Put Retirement at Risk

How Much Retirement Income will You Have? 

How to Access Your Social Security Information Online 

How to Avoid Poverty for Single Women Retirees

How to Build an Annuity Ladder

How to Choose a Good Investment Adviser

How to Downsize Without Moving and Earn Money Too!

How to Draw Down Retirement Assets

How to Choose a Financial Advisor 

How to Find Jobs Late in Life 

How to Fix Your Retirement Savings Shortfall

How to Increase Your Retirement Income

How to Manage Your Retirement Funds Yourself

How to Pass On Your Digital Assets When You Die

How to Prepare Financially for Retirement 

How to Publish Your Autobiography for Free 

How to Report a Scam or Fraud

If Grandkids Call for Money - Grandparent Scam 

Important Medicare Tips for Boomers

Important Dates for Baby Boomers in 2014 

Investigate Exchange Rates Before Moving Overseas 

Is it Time to Retire?  

Jobs for Workers Over 50

Keeping Track of New IRA Rules

Keep the Holidays Affordable 

Living on Social Security in the US 

Low Investment Costs on Retirement Funds can Save You Money 

Make Your Money Last the Rest of Your Life

Maximize Your Social Security Benefits for an Easier Retirement 


Senior Discounts - Use Them Wherever You Go

Seniors Embrace Technology and Smartphones

Seniors - Save Money on Almost Everything!

Sexism After Retirement 

Share Your Experience and Make Money on InfoBarrel

Shocking Financial Facts about Retirement

Shop Online Safely and Conveniently

Short on Retirement Savings 

Should You Retire with a Mortgage? 

Should You Rollover Your 401(k) Into an IRA?

Should You Use a Robot Money Management Advisor? 

Simplifying Your Life for Retirement 

Social Security and Remarriage 

Social Security Benefit Changes (2016)

Social Security Changes in 2013

SSI - Supplemental Security Income - Do You Qualify? 

Start an Online Business for Retirement Income

Stop Scammers, Stop Fraud and Report It - Learn How! 

Ten Ways to Make Money After Retirement

The Fifteen Most Popular Retirement Stories of 2013

The Free Cancer Screening SCAM - Do Not Fall For It!

The Retirement Income Red Zone

Top Retirement Posts of 2018 

Top Retirement Posts of 2019 - Health, Dementia and Money on the Minds of Retirees