Working Your Way Through Retirement

It's the date some people have been waiting for as long as 45 years-the date of their retirement. Retirement marks an important milestone in the lives of individuals. It means saying goodbye to one era and ushering in a new one. It means the opportunity for trips, volunteer work, and precious time with grandchildren.

However, in some cases, it may be wise to work beyond your retirement date. For instance, although you might have planned for your retirement, when the day finally comes, you might find that your cash reserves are too low to afford you a comfortable lifestyle. Cost of living increases might be higher than you expected, while your investments might be yielding lower returns than you first envisioned.

Social Security Limits

If you are thinking about working beyond your retirement date, however, you must be aware of how your income could affect the money you receive from social security. For example, in 2005, the most you can earn without sacrificing your social security benefits is $12,000. If you earn above that threshold amount, your social security benefits will be cut by $1 for each $2 you earn above the $12,000. If you discover that you must work beyond your scheduled retirement date in order to earn enough money to live comfortably, it's a good idea to try to increase your savings so that you can shorten the amount of time you need to work.

Increasing Your Savings

There are a number of actions you can take in order to increase your savings. For instance, you might consider a debt consolidation loan in order to cut your monthly credit card payments. The amount you save in interest can then be used for your retirement fund. Another way you can enhance your savings is through downsizing. Consider moving into a smaller home or apartment, or trading in your luxury car for an economy model. Such simple changes can ensure that your standard of living is better during your retirement than it might otherwise be.

You might also consider putting your money into investments that yield a higher rate of return. This type of aggressive investing is particularly important if you have a long life expectancy and need money to live on for at least the next 20 years. However, be sure to place your money in investments that offer a good deal of liquidity, meaning that you can withdraw money when you need it. Otherwise, you might find that your money is tied up in investments when you actually need it to live on.

Doing the Math

Be aware of the fact that your income during retirement usually depends on the amount you saved, your yearly expenses, and the amount of time you intend to stay in retirement. In order to ensure that your income balances your expenses, you should first do some number-crunching. List your utility costs, food expenses, housing costs, taxes, transportation expenses, and medical fees. Figure that, with inflation, these costs will rise about three percent each year. Then, factor in how many years you're likely to spend in your retirement. Once you have some firm figures, you'll be better able to gauge how long you'll have to work past your original retirement date.

Retirement can be a golden opportunity to do all those things you never had time for during your working life. However, it is important to plan ahead in order to ensure that you have enough money tucked away to realize your dreams. With a little bit of foresight, you can ensure that your senior years are, in fact, your golden years.

Click here to go to the next career article - Assess Your Career Honestly

Click here to see the full list of career articles.

Click here to see the full career article library.

Make Employers Chase You, With an Irresistible Resume and Cover Letter in Just 24-48 Hours by Your Own Certified Resume Writer.

Free Resume Critique. Webpage resumes, ASCII resumes, Resume posting, Resume distribution.

Professional-Resumes.com