Many older Americans who once envisioned a relaxing retirement are instead continuing to work well past the traditional retirement age. According to a recent Pew Research Center study, 18.8% of Americans aged 65 and older were still employed as of May, up from 12.8% in 2000.
Why Seniors Continue Working
The reasons vary. Some individuals continue working out of financial necessity, while others simply enjoy their careers. John Eikenberry, President of Eikenberry Retirement Planning (www.EikenberryRetirement.com), is among those who choose to work because they love what they do.
Eikenberry, now 68, found that staying active helped him recover quickly from a recent surgery. ‘One of the people in the medical field told me that because I’m active that has helped me to rehab quickly,’ he says. ‘They said if I was retired, typically it takes longer to rehab.’
Benefits of Working in Retirement
Here are some advantages of staying employed beyond retirement age:
- Financial Relief: Many retirees worry about outliving their savings. Even part-time work can provide supplemental income and reduce financial stress.
- Physical Health: Staying active through work can help seniors maintain better physical health.
- Mental Stimulation: Engaging in work that challenges the brain may help delay symptoms of dementia. Eikenberry notes that staying mentally active is a concern for many in their 50s and 60s.
Understanding Social Security Implications
Eikenberry advises that seniors considering work in retirement should understand how it affects Social Security benefits. If you wait until full retirement age (66–67 for most people), you can earn unlimited income without penalty. However, if you claim benefits early (starting at age 62), your earnings are capped at $15,720 annually. For every $2 earned above that, $1 is deducted from your benefits.
In the year you reach full retirement age, the limit increases to $41,880, and the deduction changes to $1 for every $3 earned above the limit, but only for earnings before the month you reach full retirement age.
Eikenberry is content with his decision to continue working and finds it personally rewarding. ‘For me, there’s nothing negative about working in retirement at all,’ he says.
About John Eikenberry
John Eikenberry is the President of Eikenberry Retirement Planning (www.EikenberryRetirement.com) and has over 42 years of experience in financial services. He is a member of the Million Dollar Round Table (MDRT) Top of the Table, the Lima, Ohio Chapter of the National Association of Insurance & Financial Advisors (NAIFA), and the Shelby County Chamber of Commerce.
