Money in the Middle

Sandwich Generation Talking About Money Up, Down and Across Generations

The New Retirement is Working

with 2 comments

As the economy continues to putter along, and the employment numbers continue to drop, it looks like there will be more potential workers.  About 9.5 million retirees hope to re-enter the workforce at least part-time, according to new research from Charles Schwab.  Another 32% of workers say they’ll hold onto their job and delay retirement.  Looks like we’re redefining retirement and retirement planning.

 It’s tricky water for retirees who may already have put in place retirement funding such as Social Security, distributions from 401(k).  But, many times what has been turned on can be turned off.  Just make sure you know all the rules.  Here some things to consider if this is the situation you find yourself or family member in.

 *Consider stopping your social Security payments.  Watch the maximum earnings.  If you are going to exceed that and can afford to, you can pay back the Social Security payments you’re received.  And then restart Social Security all over again later.

 * If  you are approaching 70 ½ remember you’ll need to take required minimum distributions from any traditional IRAs.

* Review your insurance coverage and see if there is anyplace to trim ( a good tip for any age).  If you are over 65 and enrolled in Medicare, you can’t make changes in many plans until Nov. 15, but keep any eye out for premium notices this fall.  Higher rates might make it a good time to shop and compare. Retiree health care costs can take a big bite into your budget.

* Stay as debt free as possible.  Staying debt free gives you more options and is a less of a strain on your retirement income as you seek a job.

* Watch your risk factor in your investments.  It can be tempting to jump into the market in hopes of restocking the nest egg.  But if you are thinking of returning to work to get more money, it’s not the best time to put more risk into your savings.  Can you really afford to lose again?

* Get healthy/stay healthy. Poor health stops many from returning to work and forces others to retire sooner than they planned.  Exercise regularly, eat healthy, stay fit.  Not only does it help in the job search, but it helps keep your health care costs down.

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Written by Laura Rossman

July 6, 2009 at 4:13 pm

2 Responses

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  1. Hi Laura,
    How refreshing to read your advice, which tells the truth about the market risk and reducing debt as considerations for retirement strategy…

    You refer to your blog on the sandwich generation terminology, which I’m here seeking. Did I miss it?

    Best,

    Carol

    Carol Orsborn

    July 8, 2009 at 2:42 am


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