It’s become part of a lifestyle choice: Today’s active retirees love the Florida retirement lifestyle but they also enjoy working. The solution is to look for a way to effectively combine the two.
1. Consider the impact on your Social Security benefits.If you’re thinking of working at least part-time as part of your Florida retirement plan, you’ll want to keep these issues in mind:
You can work and collect Social Security benefits, but your benefits will be reduced if you retire before what the government considers your “full retirement age.” Your benefits will also be reduced if you are working before “full retirement age” and earn above a certain amount.
2. Budget on net (after-tax) income.
Both regular income and Social Security benefits are taxable, so when you plan your budget, be sure you are calculating on after-tax numbers.
3. Factor in healthcare coverage.
If you retire before qualifying for Medicare at age 65, a part-time job that includes healthcare benefits can be a tremendous asset. Even after the age of 65, an employer-sponsored benefit that pays for the gaps in Medicare is valuable.
4. Be sure the job will cover your expenses.
There may be situations where it simply doesn’t pay to work in retirement. Consider how much you’ll net after taxes and how much it will cost you to work. Think about the cost of commuting, parking, clothing, dry cleaning, meals and so on. It may be more economical to just relax and enjoy the amenities in your Florida retirement community.