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What retirees should know about working part time BY METRO Retirement is an opportunity to wave goodbye to the daily grind. Retirees may focus on rest and relax- ation, and many make travel a major compo- nent of their lifestyle. According to a 2022 Gallup Poll, Americans expect to retire at an average age of 66, up from 62 in 2022. How- ever, most do not hold out that long; the aver- age actual retirement age is 61. Canada used to have a mandatory re- tirement age of 65, but that mandate was over- turned in 2009. Today, the average retirement age for Canadians is 64.4 for men and 63.8 for women, according to Statistics Canada. Upon retiring, many retirees discover that they sorely miss get- ting out of the house and being productive through some sort of employment. Others may find it necessary to supplement their retire- ment incomes. There are a few things to know about working during retirement, particularly if a person is collecting government benefits. The age issue According to the Social Security Admin- istration, those falling under full retirement age for the entire year (which was raised to age 67 for those born in 1960 or later) will be subjected to an SSA deduction of $1 from your benefit pay- ments for every $2 you earn above the annual limit. For 2022, that limit was $19,560. In the year you reach full retirement age, SSA deducts $1 in benefits for every $3 you earn above a different limit, but they only count earnings before the month you reach your full retirement age. For full retirement age reached in 2022 your limit on earnings for the months before full retirement age was $51,960. After full re- tirement age, there is no limit on earnings. What about contributions? The Financial Consumer Agency of Canada reports that in- dividuals between the ages of 60 and 65 who continue to work while receiving a Canadian Pension Plan (CPP) re- tirement benefit must still contribute to the CPP. Your CPP contri- butions will go toward post-retirement ben- efits. These benefits in- crease your retirement income when you stop working. However, if you continue to work while getting a CPP retirement pension and are between the ages of 65 and 70 years old, you can choose not to make any more CPP contributions. Possible surcharges Keep in mind that if you are on Medicare, extra income could potentially trigger sur- charges for Part B and Part D. It's beneficial to speak with a financial consultant to weigh the pros and cons of part-time work during retirement. Flexible work Part-time work does not need to be daily work. Many retirees work according to how they feel. Some options include seasonal jobs, such as driving shuttles in national parks or working during the holidays in retail stores. Or you may use your expertise to con- sult or start a business. People connection A number of people work part time during retirement simply to get out of the house. Jobs that help you interact with a number of people can be beneficial, as socialization has been shown to benefit the mental health of seniors. Working during retirement can supple- ment savings and pro- vide structure that some retirees may be missing. Robson Homes is proud to introduce you to an extraordinary enclave of exquisitely designed homes in the Cambrian area of West San Jose. 4-bedroom homes with ADUs 2,831 to 3,785 square feet Prices from $3 million G R A N D O P E N I N G BROKERS WELCOME 408-761-9219 RobsonHomes.com Join us for our Grand Opening Saturday January 28 TH & Sunday January 29 TH 10:00 am to 5:00 pm 2076 Cully Place • San Jose, CA 95124 Homes | Advertising Supplement 001 BAY AREA NEWS GROUP H3