Estate Planning

Retired & Restless?
Take a Job and...Love It!!

by Yvonne Messer, Montgomery

Work is whatever a body is obliged to do. Play is whatever a body is not obliged to do.

~ Mark Twain: The Adventures of Tom Sawyer

You're restless. You see work as a way to make money from a hobby you love. Or you may need the extra money for everyday expenses or holiday presents. For any of these and other more pressing reasons, retired people may be tempted to re-enter the workforce if only on a part-time or temporary basis.

The Good News/The Bad News.

If you are officially retired but want to head back to work, you are in the fortunate position of entering a job market where the overall U.S. unemployment rate is hovering around 4.5 % on average. Many employers are having trouble filling positions. To fill this gap, a number of temporary agencies are seeking older workers.

In some states, Senior Job Fairs are being held to attract mature workers to the workplace. The Federal government has also helped seniors find jobs through agencies like Green Thumb, Inc., a non-profit organization.

In the private sector, J.C. Penney, CVS and McDonald's have signed on to the National Council on Aging 100,000 Jobs Campaign. The negative side? You will be limiting your free time; you'll be competing with younger candidates, and you will need to assess how your new job might affect Social Security payments.

Effects on Social Security.

As you may know, the Social Security Administration places limits on the amount of money you can earn before your benefits are reduced. For 1999, the limits are these:

Ages 64 and under: You can earn up to $9,600 a year with no reduction in benefits. However, for every $2 you earn over that amount, there's a reduction of $1 in your benefits

Ages 65 to 69: You cam earn $15,100 a year with no reduction in Social Security benefit payments. But for every $3 you earn over that limit, $1 is deducted from your benefit.

Age 70 or older: There are no limits on the amount you can earn as far as your earnings affecting your Social Security Benefits. Until you reach the age of 70, you need to report your earnings for that year up until the month of your 70th birthday Once you are 70, you need not report any earnings.

Keep in mind, however, that these income levels count only toward income earned from a job. You do not need to count investment-earning, capital gains and other benefits paid by the government.

For more information, contact Social Security at 1-800-772-1213 for the pamphlet #05-10069, How Work Affects Your Benefits. Or check out their internet site: http://www.ssa.gov 

~

Originally published: Alabama Prime Times, April 1999

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