RALEIGH, N.C. — It's being called the Great Resignation, a time when many are being forced or are choosing to quit their jobs. And as employers seek new hires to fill those empty positions, some retirees are answering the call.
In April, 1.7 million retirees had re-entered the workforce over the past year, according to federal data tracked by economists with Indeed.
Financial planner Alex Sutherland of LifePlan Group says there are a number of reasons retirees are choosing to get back in the game.
Sutherland says nearly 2 million people have “unretired." Some because they left work early due to COVID-19, while others are choosing to go back to work to stay active and take advantage of extra benefits employers are now offering.
To entice qualified workers to fill these vacant positions, Sutherland says many employers are increasing benefits and offering higher pay. He says people are coming out of retirement because they’re being offered flexibility in their schedules, while being able to offer experience to these high-demand jobs.
But before you decide to reenter the workforce, LifePlan Group says there are some things you should consider.
WHAT SHOULD RETIREES CONSIDER BEFORE REJOINING THE WORKFORCE?
- Social Security - For those receiving Social Security benefits that aren’t full retirement age yet, your benefits won’t be affected as long as you earn less than $19,560. Every year after you reach full retirement age, there is no income limit or penalties
- Medicare - If you return to work and your employer offers health insurance, you can still keep your Medicare coverage as a primary or secondary coverage
- Tax Strategies - For those over the age of 72, you must take a required minimum distribution for your IRA accounts or face a heavy tax of up to 50%
- If you’re receiving Social Security and taking RMDs, be aware that earning a wage may bump you into a higher tax bracket
Courtesy: LifePlan Group
FOR THOSE NEARING RETIREMENT, WHAT ARE THE BENEFITS OF CONTINUING TO WORK?
- Working longer might be a great way for some to take advantage of the increased perks and benefits many employers are now offering
- Your earnings can boost your retirement savings. Your Social Security benefits increase for every year you wait to claim beyond your full retirement age
- Remember, it’s important to have a plan for retirement and a strategy for maximizing your benefits
Courtesy: LifePlan Group