New York Estate Planning & Elder Law Blog
For many Americans, the phrase “golden years” refers to the period between when one begins retirement and the beginning of age-imposed cognitive and physical limitations. The United States Bureau of Labor Statistics has found that the number of adults in this age group who continue to work has been on the increase since the 1990s. The most recent data shows that more than 20% of people age 65 or older are choosing to continue work. This marked an increase of 10% since the mid-1980s. This article reviews some critical details to understand this trend as well as how it intersects with the field of elder law.
Various Advantages Can Be Realized by Continuing to Work
Some particular advantages exist to continue working after retirement, which includes the following:
- For a growing number of Americans, they eventually run out of activities to keep them occupied. As a result, more people are left uncertain of how to fill the hours that a job once occupied. There’s also growing data to suggest that more Americans are living longer.
- A growing number of Americans have adequate savings and income from retirement plans to cover the essentials, but these individuals also fail to consider things like inflation, increased medical costs, and long-term care. For these individuals, continuing to work is a necessity.
- For many older individuals, the increased cost of medical care can be substantial. Even after individuals begin to receive Medicare, they can continue to face significant out-of-pocket costs. Even after an individual turns 65, it can prove advantageous to have additional health insurance through an employer because there are gaps in Medicare coverage. For these individuals, having a job that pays medical benefits after retirement can save them thousands of dollars
Working Longer Is Influencing Retirement Strategies
Some Americans are choosing not to walk away from what they make while others are simply not ready to leave the structure that the workplace provides. Many people have not found other activities that give meaning to their lives. There are countless reasons why people are working past retirement age. People who continue working past retirement age should consider various options to make the most of their plans, which include:
- Establishing an eventual path to retirement.
- A few more years of contributing to a retirement account can substantially enhance a person’s retirement security.
- While still working, you might decide that you want to convert a traditional IRA to a Roth IRA. The converted amount could end up placing you in a higher tax bracket.
- You probably want to postpone Social Security retirement benefits until at least full retirement age. This is partly to let the benefit increase and partly because some or all of the benefits will be reduced when earned income exceeds the limits.
- People who choose to work additional years often do so to reduce or eliminate the debt that they have.
Contact an Elder Law Attorney
The field of elder law is full of challenges, but a knowledgeable attorney can help achieve your goals. Contact Ettinger Law Firm today to schedule a free case evaluation.