While many look forward to retirement, it can be a difficult transition when it really comes down to it. Some people don’t know what to do with all of their free time and miss the personal connections that work used to provide. Perhaps that’s why more people are opting to go part-time before fully retiring. Here’s what to keep in mind if you’re considering this.
Transitioning to part-time employment can give you some of the freedom of retirement while keeping familiar routines and relationships in place. It can also help you figure out a plan for what you will do with your free time in retirement before you actually retire. If your company doesn’t have a formal phased retirement program, you can prepare a proposal for your part-time schedule.
Plan which tasks you will still handle, how you will still do them with a reduced schedule, and how you will pass on your expertise, insights, and connections to younger coworkers. It’s important to emphasize how your skills and knowledge can still benefit your company even if you won’t be there full-time. Also, articulate how stepping back from your role might give younger workers the opportunity to assume leadership roles while still benefiting from your mentorship.
One crucial thing to consider if you will receive a pension is how working part-time will affect your benefits. Salary just prior to retirement is typically a factor in determining a pension benefit. Benefits such as healthcare and paid vacation time could also be affected. Know if you will still be on your employer’s healthcare plan or if you will enroll in Medicare. Also consider if you will delay taking Social Security if you are working part-time. You could be penalized for earning more than $19,560 if you claim benefits before your full retirement age.[1]
It can be hard to know when you’re truly ready to retire, both from an emotional standpoint and a financial standpoint. You can focus on the first while we focus on the second. We can take your unique retirement goals into account when helping you create a comprehensive retirement plan. When and how you retire are important, and the decisions you make leading up to retirement can affect you for decades to come. If you’re ready to start planning for the future, sign up for a complimentary meeting.
[1] https://www.ssa.gov/benefits/retirement/planner/whileworking.html.
Disclosure:
Because investor situations and objectives vary this information is not intended to indicate suitability or a recommendation for any individual investor.
This is for informational purposes only and should not be relied upon as tax or legal advice. Please consult the appropriate professional regarding your individual circumstance.
Content regarding social security is not associated with or endorsed by the Social Security Administration or any other government agency. Maximizing your Social Security Benefits assumes foreknowledge of your date of death. If as an example you wait to claim a higher monthly benefit amount but predecease your average life expectancy, it would have been better to claim your benefits at an earlier age with reduced benefits.
There are retirement account risks that could diminish investor returns, such as, but not limited to: low interest rates, market volatility, withdrawal timing and sequence of returns risk, government policy uncertainty and increased longevity. Prospective investors should perform their own due diligence carefully and review the “Risk Factors” section of any prospectus, private placement memorandum or offering circular before considering any investment.
The data contained in this material was obtained from third-party sources believed to be reliable; 5however, Asset Strategy Advisors does not guarantee the accuracy of the information.
Advisory Services offered through Asset Strategy Advisors, LLC (ASA). Securities offered through licensed representatives of Concorde Investment Services, LLC (CIS), member FINRA/SIPC, or RCX Capital Group, LLC, (RCX), member FINRA. Insurance offered through Asset Strategy Financial Group, Inc. (ASFG). ASA, CIS, RCX and ASFG are separate companies
