Key Points
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You may need more income to supplement your Social Security checks.
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Working could actually lead to larger monthly benefits for some retirees.
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If you’re bored and restless, a job is a great thing to do with your time.
For many people, claiming Social Security is synonymous with retiring and bringing a long career to an end. And after spending decades in the labor force, it’s natural to reach the point when you don’t want to work any longer.
But even if you’re enjoying a monthly paycheck from Social Security, it could pay to return to a job. Here are three good reasons to consider working again.
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1. You want to supplement your monthly benefits
The average Social Security retirement benefit today is about $2,081 per month. If you don’t have retirement savings and can’t get by on just Social Security, a job could be a great way to supplement those checks.
Even if you do have retirement savings, if the market is down and it’s a bad time to tap your portfolio, it could pay to have access to outside income. In that situation, a job could help you pay your bills while allowing you to leave your portfolio untouched, increasing the chances of a full recovery.
2. You want to boost your monthly benefits
Your Social Security benefits are calculated based on your 35 highest-paid years of income. But if you don’t have a 35-year work history at the time you file, you’ll have a $0 factored in for each year you don’t have wages on record. And even a single $0 income year could lead to smaller monthly benefits.
If you’re collecting Social Security and want to see those benefits increase, working part-time could be a great way to make that happen. If those wages replace a $0 income year, the Social Security Administration should recalculate your benefits and start paying you more money.
3. You’re bored and need a social outlet
It’s not uncommon for people to get bored and lonely in retirement. If you’re feeling restless and starved for company, work could be a great way to keep busy and interact with people.
Remember, too, that even if you don’t earn a lot of money from a part-time job, it’s a way to keep busy without spending money. That could help you stretch your savings.
Once you reach full retirement age, you can earn any amount of money from a job without having to worry about having a portion of your Social Security checks withheld. And even if you haven’t gotten to that age yet, if you keep your wages below Social Security’s earnings-test limits, you can avoid negative consequences. So if you like the idea of having supplemental income, boosting your benefits, keeping busy, and having company, it pays to consider going back to work.
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