Do You Plan to Work in Retirement?

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The 2018 Retirement Confidence Survey found that more than two-thirds of all workers expect that paid work will play a role as a source of retirement income.  If you believe that working for pay will supplement at least some of your retirement income, consider the following facts.

More people are working beyond age 65

According to the Bureau of Labor Statistics, 37% of men and 28% of women between the ages of 65 and 69 were still in the workforce in 2017.  In addition, 17% of men and 10% of women age 70 and older were still working.

Social Security imposes an "earnings limit"

If you plan to work and claim Social Security benefits before reaching your full retirement age (66 to 67, depending on year and month of birth), you will be subject to an earnings limit ($17,040 in 2018).  Above that limit, $1 will be withheld from your benefit for every $2 earned.  In the year you reach full retirement age, you will lose $1 for every $3 earned above a higher limit ($45,360 in 2018).  Once you reach full retirement age, there is no reduction in benefits.

Income for older workers is on the rise

According to the U.S. Census Bureau, the average earnings for workers age 65 and older increased by 47.6% between 2000 and 2015, a far greater increase than that of any other age group.

 

IMPORTANT DISCLOSURES

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.



This communication is strictly intended for individuals residing in the state(s) of VA. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018.

 

Personal FinanceKate Cote