A number of older adults delay retirement, continue working at less hours, or take a job in a different job arena to keep life more interesting and the budget more manageable.
Why Older Adults are Still in the Workforce
For many, career building is not the idea – being around people, staying busy, and bolstering their budget provide enough reasons for continuing to be in the workforce.
Multiple Streams of Income for Seniors
Senior living has become harder to do with just one's Social Security and pension. So, as entrepreneurs have done for generations, older adults may want to establish multiple streams of income. This has the same logic as the well-known idea of diversification of risk and assets.
These may include:
- Social Security
- Retirement pension
- IRA or other similar funds
- In-home projects to generate income
- Consulting
- Working outside the home full or part time
Pros and Cons of Self-Employment of Older Adults
If a senior is a faithful bookkeeper, it will be natural to keep up with taxes and paperwork requirements. These good managers have a chance at making money and enjoying the benefits of self-employment. It can be in one's former career, consulting, or a life-long interest or hobby. But some seniors go off in a completely different direction to fulfill their passion while making money.
Such endeavors may not bring financial gains immediately. So don't depend on them for regular bills, and allow time for business to build up over time.
However, for people less skilled in maintaining paperwork faithfully, this may not be an appropriate option. Such a decision may require honest self-examination, yet the rewards of making a good choice will be felt in the pocketbook and in physical and mental well-being.
Social Security and Pensions for Seniors Who Work
Seniors past full retirement age may make as much money as possible without losing any part of the monthly payment. Also, some workers benefit by raising their social security monthly amount as they add more quarters to the formula on which social security is based.
Check with the Social Security office with your questions. It may affect a decision to work as well as the timing of when to start collecting Social Security benefits. Agents are quite willing to help you plan by walking you through various scenarios and their financial consequences.
Similarly, some pension plans have rules about working. Certain teachers' retirement plans won't allow over half time work in the public schools yet the policies don't affect working elsewhere.
Increasing Number of Seniors at Entry Level Jobs
Although seniors are used to age discrimination, a new twist has risen out of the changing economy. A number of seniors need to boost income since their other streams of income aren't doing as well as predicted.
As Steven Greenhouse reported in The New York Times, "young and old are facing off for jobs." Fort Lauderdale has seen a battle for entry level jobs between the young and older populations. Lower-wage jobs are often being taken by older workers – leaving first time job seekers with less choices.
Boomers and other seniors have lots to bring to the table: more experience, less missed days, and better people skills. Publix (a large Florida chain of supermarkets) hires both age groups, tapping into the strength of each to build an effective workforce.
Many older adults are still in the workforce as they seek multiple streams of income including entry level jobs. It is vital to look at pros and cons when considering self-employment, as well as carefully researching Social Security and pension policies.
Reference:
Greenhouse, Steven. "Young and Old Are Facing Off for Jobs" New York Times, March 20, 2009.
 |
