For various reasons, many retirees are headed back to the workforce.
If you’re thinking of joining them, you’ll need to consider some factors that may affect your finances.
First, if you’ve been taking Social Security, you could see your payments reduced if you earn over a certain level, at least until you reach your full retirement age, which is likely between 66 and 67.
And your Medicare Part B and Part D premiums are based on your income, so they could rise if you start earning more money.
Also, your extra income could push you into a higher income tax bracket.
Still, going back to work can offer some advantages.
First, of course, is the added income, which can boost your cash flow and help you reduce your debts.
Also, you can contribute to an IRA and possibly a 401(k) or similar employer-sponsored retirement plan.
And you might find some social benefits, too, as you re-engage with other workers.
Ultimately, you’ll want to weigh the potential costs of going back to work against the possible benefits.
There’s no one right answer for everyone, but by looking at all the variables, you can reach a decision that works for you.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson. Member SIPC.
