The Ups and Downs of Retirement

Retirement is not the end. It is the beginning. It is a phase where an old chapter is closed and the person moves forward to face another.

There are many things people can do after retirement. A person can do new things, learn new skills, be more active with the community but most people feel that the identity of the person is with the job which makes it difficult to let go.

Most people prefer to work after retirement and there are ups and downs for a person choosing do so.

One of the most important things people consider is money. By having a job, it gives revenue which can be used to pay bills and other expenses instead of using the money one has saved from the retirement plan.

Another benefit is that the new employer will give health insurance. By working full-time, the employee can enjoy this, which again saves the money earned from the retirement plan. Part time work in most cases is not given any health coverage.

By staying active, one’s mental development is still sharp making the person feel important in the community.

Social security benefits are also a factor because the benefit payments are based on the top 35 earning years which could be higher by working longer.

The downs of working after retirement are that in some places age discrimination does exist. Some people hire younger people since these people believe that older people are no longer that efficient.

Pension problems may happen if one retires and decides to get a new job. To avoid this, one must check with the former employer if there will be any problems in accessing the pension plans should one choose to work again. The best choice will be to get a lump-sum pension from the previous employer so the funds will not be affected.

By working again and increasing one’s income with the new job, there is a big chance that a large percentage will be deducted for tax.

If one chooses to work again, instead of spending the leisure time relaxing with friends and family, the new job will prevent this and other interests from happening.

Last con of working again after retirement is with IRA withdrawals. This will still require the person to give minimum contributions at 70% which means more of the social security benefits one has will be taxed.

Retirement is not the end rather the beginning. It is just a phase where an old chapter is closed and a new one opens.

One should just weigh what matters most.