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Mark W Petro
mark.petro@lakelandinvestors.com
 
 




Retirement Income: The Transition Into Retirement

Phased retirement

Some employers have begun to offer phased retirement programs. These programs allow you to receive all or part of your pension benefit once you've reached retirement age, while you continue to work on a part-time basis for the same employer.

 

Do You Plan to Work in Retirement?

Many employees nearing retirement plan to work for at least some period of time during their retirement years. The obvious advantage of working during retirement is that you'll be earning money and relying less on your retirement savings — leaving more to potentially grow for the future and helping your savings last longer.

But there are also non-economic reasons for working during retirement. Many retirees work for personal fulfillment — to stay mentally and physically active, to enjoy the social benefits of working, or to try their hand at something new. The reasons are as varied as the retirees themselves.

If you're thinking of working during a portion of your retirement, you'll want to consider carefully how it might affect your overall retirement income plan. For example:

  • If you continue to work, will you have access to affordable health care (more and more employers are offering this important benefit to part-time employees)?
  • Will working in retirement allow you to delay receiving Social Security retirement benefits? If so, your annual benefit may be higher than if you don't delay.
  • If you'll be receiving Social Security benefits while working, how will your work income affect the amount of Social Security benefits that you receive? Additional earnings can increase benefits in future years. However, for years before you reach full retirement age, $1 in benefits will generally be withheld for every $2 you earn over the Social Security annual earnings limit. Special rules apply in the year that you reach full retirement age.


Investments and advisory services are offered through Lakeland Investor Services, Inc., a Registered Investment Advisor. 11873 Oakland Beach Road, Conneaut Lake, PA 16316, (814) 382-6681. Insurance services offered through Lakeland Insurance Services, LLC and Mark W. Petro, an agent licensed in PA, FL, MI, NJ, OH and VA. Neither Lakeland Investor Services, Inc. nor its agents and representatives can provide tax, legal or accounting advice. Clients should consult their own attorney or tax advisor about their specific circumstances.

This communication is strictly intended for individuals residing in the state(s) of FL, NJ, OH, PA and VA. No offers may be made or accepted from any resident outside the specific states referenced.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2024.