Working after retirement
Julie E. Houston • Bankrate.com

Ah, retirement. It used to mean taking up shuffleboard and driving at a snail's pace on the highway. But the times they are a-changing. Nowadays, age 65 is just a number for many workers who discover the life of the un-retired.

There are two reasons to work after retirement: Because you want to, or because you have to. To make sure you have enough gold for your golden years, run your numbers through our 401(k) calculator.

Even if you have plenty of cash, you might end up looking for a new job and the new life that goes with it. In a survey of baby boomers ages 33-52, 80 percent plan to continue working after retirement.

"Work is far too relevant to our sense of purpose and meaning in life," explains Mitch Anthony, author of Retiremyths: Stop planning for your retirement and start planning your life. "It is pertinent to our health, our energy and our sense of worth in this world."

Now, the bad news

Until recently, there was still a DIS-incentive for retired people to work. Until the Senior Citizens' Freedom to Work Act of 2000 passed the Senate at the beginning of April, a retired person under age 65 could only earn up to $10,080 with no reduction in their benefits. If the retiree earned more than that, $1 in benefits was withheld for every $2 earned over the same income.

If you were between ages 65-69, you could earn up to $17,000 with no reduction in your Social Security benefits. If you earned more than that, $1 in benefits is withheld for every $3 earned over the same amount.

When the Senior Citizens' Freedom to Work Act passed, it did away with any reductions to Social Security benefits regardless of what a retired person earns.

"The Senior Citizens' Freedom to Work Act is good labor, social and economic policy ... We should encourage, not penalize older workers," explains Horace Deets, executive director of the AARP.

Retirement is also a great way to continue insurance benefits, something many people need as they grow old.

While insurance benefits are important to retired workers, the bigger reason for working after retirement is to maintain their lifestyle, according to Cathy Fyock, author of Un-Retirement: A career guide for the retired, the soon to be retired and the never want to be retired.

Follow that dream

What's more, many retirees are finding that once the family is not as dependent on a stable income, it's a prime time to take chances and pursue a dream job.

"[Retirement] is a great opportunity to explore new things and do things that you've always wanted to do," Fyock says.

She suggests that if you're considering extending your years at work you should determine: how many hours you're willing to work, your skills and past work experience, how challenged you want to be, and consider trying something new.

"I hear about people who are having a ball doing the things they want to do," Fyock says. Careers in real estate, health services and nonprofit companies are very popular with retirees.

The Un-retired

One retiree who's on the ball is Art Neuman, of Cincinnati,  "A lot of people can't wait to retire and die in a couple of years. I want to live to be 100 ... put off the dribbling years as long as I can," he says.

Since he retired after working 20 years for a floor-covering business, Neuman has come out of retirement several times. Most recently, Neuman and his friend Marvin Belkin started Handyman Connection, a home repairs company. Ten years later, their company has boomed into a $30 million business.

"It's very exciting at this stage in life to do something, be successful and help people," the 69-year-old Neuman says. "Money is just how you keep score." 

-- Posted: March 16, 2000