Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

Can A Part-Time Employment Help You Delay Social Security?

Deferring your Social Security claim is frequently recommended. Why? Based on your specific earnings history, you are eligible for your complete monthly payment after you hit full retirement age (FRA). Depending on your birth year, your FRA will be 66, 67, or somewhere in between. However, for each year you wait to claim Social Security after FRA, your benefits increase by 8%. That increase will last for the remainder of your retirement.

You can no longer accumulate credits that result in increased perks once you become 70. So if your FRA is 67 and you want the highest Social Security income possible, you’ll have to wait three years.

That’s not always an easy undertaking, unfortunately. Many people in their late 60s are unable to work full-time. While working full-time until the age of 70 may not appeal to you, it is worthwhile to consider a partial retirement in which you work part-time. This could be your ticket to delaying Social Security and securing a higher monthly income, which allows you to live even more comfortably in retirement.

The Benefits Of Part-Time Retirement

Not every job is suitable for part-time work. Nonetheless, many fields do. If yours is one of them, it may be worthwhile to consider switching from full-time to part-time employment once FRA arrives. This can enable you to postpone your Social Security claim while still making enough to pay your bills without dipping into your retirement savings.

However, there are certain advantages to partial retirement. Gradually transition into part-time work to obtain a taste of retirement. You’ll experience what it’s like to live on a smaller salary and how easy (or tough) it is to spend your days while you’re not working.

Keep in mind that working is one low-cost way to kill time. If you work less, you may end up spending more money on recreation. That’s a piece of great advice you could use while you’re still employed. Indeed, you’ll would like to keep yourself involved while you are no longer working, which is one of the key reasons it pays to boost your Social Security income.

Both worlds combined

If you intend to boost your Social Security benefits but can’t see yourself spending 40 hours weekly at the office until you’re 70, then partial retirement might be the way to go. What’s more, who knows? If that arrangement works out well, you could opt to keep it even after you’ve turned 70 and are getting monthly Social Security benefits.

Many seniors find that working part-time gives them the best of both worlds: a way to be busy and increase their income without committing to a full-time career. That’s also something to think about for your retirement.

Contact Information:
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Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.

Disclosure: Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.

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