First Federal Bank Blog

Even when you’ve reached retirement age, your working years won’t necessarily come to an end. In some cases, you may need — or want — to find a part-time job after you’ve officially retired. Here are some questions to ask yourself as you decide whether to seek out employment during your retirement:
 
Will you have enough money to live on?
 
This is the most important question to answer as you consider a post-retirement job. According to an article by Liz Weston for NerdWallet, you can start by estimating how much money you’ll have to have on hand each year to cover your basic needs (like housing, utilities, food, transportation, medical care, and emergency expenses). You’ll also want to calculate your projected retirement income (from Social Security, 401(k) savings, and any other sources) with the help of a financial advisor or an online tool. If your projected retirement income doesn’t match your estimated living costs, a part-time job could help you bridge this gap. It could also help you catch up on savings instead of depleting your retirement account right away.
 
Are you facing higher-than-expected expenses?
 
Sometimes, unexpected expenses or rising costs can complicate your spending plans after you retire. If this happens, Maurie Backman suggests in an article for The Motley Fool you should consider taking a part-time job. Whether you’re dealing with new medical issues, a large emergency expenditure, or high inflation, part-time work can help you stretch your precious retirement dollars further.
 
Do you want to fund extras like hobbies or travel?
 
Sometimes your projected retirement income is enough to cover the basics of living — but not much beyond that. This could be frustrating if you want to spend money on hobbies, recreation, dining out, travel, or anything else that’s not strictly essential. Part-time work could provide a solution to this problem, giving you the income to afford a more fulfilling retirement.
 
What is your Social Security and Medicare situation?
 
A part-time job could affect the Social Security and Medicare benefits you receive. Per an article by Kate Ashford for NerdWallet, if you retire at age 62 and claim Social Security, part-time wages could raise your income to a threshold that reduces your monthly benefits. However, once you reach full retirement age, making extra income won’t affect what you receive from Social Security. If you’re enrolled in Medicare, Ashford notes that part-time income also has the potential to raise your Part B and Part D premiums if you pass a certain earnings threshold. These aren’t necessarily reasons to avoid getting a part-time job after retirement, but you’ll want to factor them into your decision.
 
Do you have non-financial reasons to continue working?
 
Even if your retirement years look to be financially secure, a job could help to meet other needs in your life. According to Backman, a part-time job could help you enjoy a fuller social life, help you feel challenged, and stave off boredom. Plus, you’ll reap these benefits while making money and replenishing your nest egg.
 
Whether you’re facing fiscal uncertainty or simply want a little extra spending money, a part-time job can contribute to a more secure, stable, and meaningful retirement. It’s an option well worth considering as you wind down your full-time working years and plan for your financial future.