Working In RetirementEd Slott & Company
Many Americans are staying on the job longer.
Posted May 18, 2012
These days we are seeing many more retirees going back to work after their normal retirement date. The two main reasons are (a) financial and (b) psychological. With the economy being what it is, many individuals require more income to support their lifestyle, while others become bored and need a work-related discipline in their lives.
A recent report from the Employee Benefit Research Institute in Washington, D.C. indicates that more Americans are staying on the job longer. Many retirees who go back to work face many new challenges. For instance, many older workers sometimes labor in adapting to the rapidly changing world of technology, as their experience in this area may be minimal. Some of these folks have to solicit help from their kids or grandchildren just to keep up.
As retirees get older, health issues may prevent them from engaging in certain types of employment, or simply keep them from being able to work enough hours. In addition, retirees who have given up driving find it difficult or impossible to gain employment outside the home.
We have written many articles here in the about the importance of funding workplace retirement plans and IRAs each and every year, when possible. If personal savings are not enough to live on, including Social Security, you may not have the mental or physical ability to go back to work. Thus, the more money you are able to save and invest in your retirement plans while working just might be enough to bridge that gap.
You have until April 15, 2013 to make your 2012 IRA contribution for both you and your spouse, if applicable. In order to do so, you must have earned income (e.g. wages, salaries, tips, bonuses, commissions, self-employment income, professional fees, alimony and non-taxable combat pay) at least equal to the contribution amount you wish to make. For traditional IRAs, you must be under age 70 ½ to contribute. No age limit applies for making Roth IRA contributions.
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