“Unretiring” is a New Trend…But Be Careful! - thestreet.com
One of the effects of the COVID-19 pandemic has been a trend toward early retirement, especially among those forced out of the workplace and turning toward Social Security benefits to keep them afloat. In addition, many originally intending to continue working beyond their full retirement age also elected to file for benefits when their employment situation changed. Now, with the world of work returning to some degree of normalcy, many of these same people are re-thinking their strategy and electing to reverse course and, in effect, “unretire.” Earlier this year, for example, Indeed’s Hiring Lab reported that over three percent of those ho retired a year earlier had returned to the workforce.
For those electing to rejoin the workforce after having made the decision to file for Social Security benefits, there are several key factors that need to be considered. A post on thestreet.com by Alyson Dorosky, LifeYield’s Head of Social Security Support discusses five of these factors, beginning with one–the earnings limit for those drawing benefits before their full retirement age–that can derail a big portion of one’s financial strategy if not clearly understood. Ms. Dorosky’s article, which you can access here, also touches on the availability of delayed retirement credits for those choosing “unretirement” after reaching their full retirement age. Overall, this is a good primer for anyone considering this strategy.
Ms. Dorosky also makes the point that seeking professional advice for anyone approaching a Social Security filing decision is a wise move. We couldn’t agree more, and note that the AMAC Foundation provides a free-to-the-public service to help Americans navigate the Social Security’s complexities. Learn more about it here…