The following information is geared toward those enjoying a life in retirement, but it could also help others close to that milestone. We'll look at what to do after retirement, when one finally stops working their "regular job," though it may not be their last. In fact, one study found that for various reasons, as many as 20% of retirees return to work of some sort, and another 7% are seeking employment†.
If you're now retired, hopefully, you have a financial plan designed to help ensure you don't outlive your money. But that plan is only a roadmap with directions and mileposts leading to your goal. It's up to you to follow those directions to reach that goal. Otherwise, as that same study found, 48% of those working in retirement were doing so for financial reasons.
By the same token, whatever plan you have, changing circumstances may nudge you to review and reconsider some of your goals and tactics.
Is your budget working?
For all except the extremely wealthy, a secure retirement is all about sticking within a budget outlined in your plan. Retirement can last for many years if lucky, and according to data provided by the Social Security Administration, 65-year-old men and women can expect to live another 16 and 19 years, respectively‡.
Over those years, it's necessary to maximize your income and limit expenses as your budget dictates. And if working while receiving social security, there are limits on how much you can earn depending on your age.
As far as expenses are concerned, keep an eye on your discretionary spending. Housing, food, and healthcare costs are clearly required, but watch other outgoing amounts. Remember that a penny saved...
Regularly review your retirement plan
The guidance laid out in your retirement plan is only as relevant as the economic conditions–yours and the economy in general–under which it was created. One thing we are sure of is that markets fluctuate but even then it may be wise to stay the course. Slight changes may not require altering your plan but regularly reviewing your plan with your Huntington advisor might help determine if any changes should be considered.
Things change that may impact your income. Did you get a little bored and pick up a part-time job? Sell real estate or another valuable asset? Did a member of your household contribute any financial support?
What's your social security plan?
Social security has been mentioned already, but there are more aspects that could impact many retirees. You can begin drawing social security when you're 62, however the monthly amount would be higher depending on how long you wait.
The maximum payment will depend on your age upon retirement. If you retire at 62 in 2024, your maximum benefit would be $2,710. But if you retire in 2024 at your full retirement age, the maximum benefit would be $3,822. And if you retire at age 70 in 2024, your maximum benefit would be $4,873§. Your health, life expectancy and financial situation may help you decide what's good for you.
Common Questions
Can I work after retirement?
Yes, you can work after retirement and there's no maximum on how much you can earn while on Social Security if you've reached full retirement age¶.
Can I contribute to a Roth IRA after retirement
You can keep contributing to a Roth IRA after retirement, as long as you have some earned income.
Can I retire after 25 years of work?
The earliest age you can start receiving social security retirement benefits is age 62.
Can I contribute to an HSA after I retire?
Yes, but there are a few strings: You're not yet enrolled in Medicare; you're covered on a high-deductible health plan; and you're not someone's tax dependent.
Because your retirement may stretch into decades, it's important to not only plan and prepare for that phase in your life, but also be prepared to take a detour on your roadmap if certain circumstances arise. Even good plans could benefit from regular reviews with your Huntington advisor.
† Ward, Judith. March 26, 2024. ""Unretiring": Why Recent Retirees Want to Go Back to Work." T.RowePrice. Accessed May 23. 2024. https://www.troweprice.com/personal-investing/resources/insights/unretiring-why-recent-retirees-want-to-go-back-to-work.html#:~:text=According%20to%20T.,variety%20of%20benefits%20and%20motivations.
‡ U.S. Social Security Administration. 2024. "Actuarial Life Table." Accessed May 23, 2024. https://www.ssa.gov/oact/STATS/table4c6.html
§ U.S. Social Security Administration. Jan. 2, 2024. "What is the maximum Social Security retirement benefit payable?" Accessed MAY 28, 2024. https://faq.ssa.gov/en-us/Topic/article/KA-01897#:~:text=The%20maximum%20benefit%20depends%20on,maximum%20benefit%20would%20be%20%244%2C873.
¶ U.S. Social Security Administration. 2024. "Receiving Benefits While Working." Accessed May 28, 2024. https://www.ssa.gov/benefits/retirement/planner/whileworking.html#:~:text=You%20can%20work%20while%20you,reported%20for%20the%20previous%20year.
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