Thursday, March 9, 2017
Does working full or part time play a role in retirement?
Working Americans expect to retire at age 66, up from 63 in 2002, according to a recent Gallup poll. But most retirees don't stay on the job nearly that long. The average retirement age among retirees is 62, Gallup found. So why is this important? According to a recent study by the Centers for Disease Control and Prevention (CDC), life expectancy for American women increased to 81.2 years and 76.4 years for men in 2012, reports Medical News Today.
When you consider that in the 1930s, life expectancy was age 62 for women and 58 for men, it’s plain to see that our retirement years are growing to be an ever-larger percentage of the total years of our lives.
A June 2015 Government Accountability Office analysis found that that average Americans between the ages of 55 and 64 have accrued about $104,000 in retirement savings. Sound like a lot? Not when you realise that sum would translate into a $310 monthly payment if your money were invested in a lifetime annuity.
I have seen it recommended that by the time, you reach 60, you should have six times your salary saved – that’s $360,000 if you make $60,000 per year.
Unfortunately, the average sixty something has an estimated median of $172,000 in the bank. Not nearly enough. At this point, it’s hard to save enough to make up for the shortfall. Instead, look at your assets. What can be monetized at some point to help sustain you?
As you try to figure out where your income will come from, when you retire, don’t forget Social Security or in Canada Old Age Security and Canada Pension. Most seniors find these to be a significant source of monthly income. In the United States, the 2016 estimated average monthly benefit for a retired worker is of $1,341 per month; yours could be more or less. In Canada, the estimated average monthly income from Canada Pension and Old Age Security can range from about $1,100 to $1,500 a month.
In Canada, if you only have these Old Age Security, which is about $568 a month, as a source of income, you may be eligible for a Guaranteed Income Supplement, which may bring your monthly income up to about $1,400
In the United States, if you plan on drawing Social Security you can currently earn up to $15,720 per year without any reduction in your monthly Social Security benefits. You might want to keep that magic figure in mind when you go in search of part-time employment opportunities. There is no such limitation in Canada, although if you earn over $72,809 a year, the government will start to claw back your Old Age Security income.
Many retirees need to have additional income, some need the job to give them a sense of self-worth. For whatever reason, work part time or full time is part of the retirement reality. There are websites like Seniorjobbank.org that let you search current job listings with businesses specifically looking for older works, and AARP.org has a job search section with job hunting tips and a list of companies seeking employees.
Some companies top-ranked companies on the lists of the best part-time employer for retirees include: Barnes & Noble, FedEx, JCPenney, JPMorgan, Chase, Costco, Lands’ End, Lowe’s, Nordstrom, Publix, REI, Starbucks, Target, Trader Joe’s, U-Haul, UPS, Wegmans, Whole Foods Market and YMCA.