Years ago, many Americans depended solely on their retirement and pension plans to see them through their twilight years. Now, in the 21st Century, that has become a relic of the past. No more are families able to continue living their lives as they once did, no more are pension plans enough to get by. As a consequence, many retired Americans are returning to the workforce to supplement their pension benefits and in some cases, to pay for healthcare. Choosing to return to work after retirement can have a major impact on your benefits, so if you find yourself in this particular situation, you need to keep the following things in mind.

Potential Expenses

If you are thinking about returning to work after retirement, one of the chief things you need to keep in mind is that working will bring with it extra expenses. Yes, you will be supplementing your income, but you will also need to account for transportation, food, work attire, and potentially childcare if you have dependents living with you. You will also need to account for income and payroll taxes that can impact your Social Security benefits.

Health Care Coverage

Returning to work can also have an impact on your health coverage. One of the primary reasons why people wait to retire until the age of 65 is that that is the age when Medicare will be provided. If you are 65 or older, you need to check with your employer to find out how their insurance coverage will interact with your Medicare coverage. If you have private insurance, be sure to examine the policy offered by your employer carefully. While group plans do tend to be cheaper, oftentimes, individual plans can sometimes provide far superior coverage.

Paying Back Into Social Security

There are times when people choose to receive their Social Security benefits early at a reduced rate. If you choose to begin working again after receiving early SS benefits, you have the option of paying back what you have already received and restarting benefits at a later time. This will allow you to receive a higher payout. However, the option to pay back into Social Security is only possible in your first year of retirement.  

Suspendable Benefits

You should always be aware of whether the work you are doing after retirement qualifies as suspendable employment. If so, then your current benefits will be subject to either partial or full suspension. If benefits are suspended after you return to the workforce, they can be restarted once you stop working. In this situation, you would need to file a Benefit Resumption Notice with the appropriate administrative office in your area.


Have Your Concerns Addressed by the Professionals

Navigating the world of retirement can be a frustrating business. Navigating it when you need to return to work can be even more challenging. Don’t go it alone. At the Martin Law Group, LLC, we are always happy to answer any questions and address any concerns that you may have. Contact us to learn more today.

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