Jobs Without Benefits Help Retirees Bridge the Gap
Category: Financial and taxes in retirement
January 16, 2022 — A significant number of workers underestimate their financial needs in retirement, and that includes calculating how much they will receive from Social Security. As a result they often retire too early and start taking their Social Security before they maximize their benefit. The end result is that they face an income shortfall in their retirement years. A new study from the Boston College Center for Retirement Research has concluded that taking a non-traditional job late in one’s career can help retirees avoid a serious shortfall in replacement income, and thus have a more comfortable retirement. Replacement income is defined as the ratio of a worker’s retirement income to pre-retirement income.
Comments on "Jobs Without Benefits Help Retirees Bridge the Gap"
LS says:
We purchased a beach condo in my late 50s that I operated as a vacation rental for the next 10 years. I could do it mostly from home except for the trips down there to perform maintenance 4 or 5 times a year. But after several hurricanes and trouble keeping good cleaning services, it became too much of a burden to justify the declining income.
JCarol says:
DH & I continue to work in our small business as consultants and wholesale providers to a few long-term customers, bringing in supplementary income until DH claims his SS benefits when he turns 70 next year.
The Affordable Care Act was a game changer for DH and me from the period of our semi-retirement at 63 until we qualified for Medicare.
For now we have my SS (claimed at 65) and his 50% SS spousal claim against my earnings, the money our business brings in, and occasional dips into our retirement savings when necessary.
Will we work after age 70? Perhaps. It's enjoyable and can mostly be done remotely. With this crazy economy we'll wait to see how the year spins out.
Barbara says:
My neighbor in Florida who is in her 70's and lives there full time fell into a job that she didn't expect but loves. She is fit and healthy and would walk the elderly neighbor's dog. That grew into walking a few of the neighborhood dogs each day, then she started tending their flower gardens and landscaping just so she could be outside. She didn't do it to get paid but they did pay her weekly. When the snowbirds all left which was 50% of the neighborhood, she continued the garden work and also checked the inside their homes each week. I think it's great .she doesn't have to drive anywhere and she loves doing it plus she makes a decent amount of money. She didn't realize the need was there and they pay her well to keep her, she says she's as busy as she wants to be and can't take on anymore clients. Wish I would have thought of this.
John Brady says:
Another study from Boston College - the biggest thing you can do to maintain your standard of living if you are near retirement and haven't saved enough money. It isn't saving more money - it is too late for that. Working longer and postponing retirement is the most effective thing you can do.