The silver haired tsunami is sweeping across America. For those retirees not financially surfing at the top sipping Mai Tais, going back to work is a real possibility. If the idea of going back to work in your 60s or even 70s isn’t challenging enough, your newly found income could reduce any Social Security benefits you’re currently receiving.
There are two keys to understanding how returning to work will affect your Social Security benefits. The first one is your full retirement age. This is easily discoverable by visiting http://www.ssa.gov/pubs/ageincrease.htm and entering your birth year. The good news is that if you work and are at full retirement age or older, you may keep all of your Social Security benefits, no matter how much you earn.
The second key in the equation is the amount of income you earn. If you are younger than your full retirement age during all of 2014, one dollar from your benefits will be deducted for each two dollars you earn over $15,480. For example, if your monthly Social Security benefit payment is $500 ($6,000 annual) and you make $20,480 by working over the course of the year ($5,000 over the $15,480 limit), $2,500 of your $6,000 annual benefit would be withheld.
However, going back to work is not always an option. Physical limitations, transportation logistics, or even finding the right opportunity can be barriers to getting that new job. If you have a financial need now, are 70 or older, and have a life insurance policy, you may have an alternative to supplement your Social Security benefits.
Do you know your life insurance can be sold in the secondary market for more than the surrender value but less than the face value? Having a reliable flow of income offers financial security and peace of mind during the retirement years. Converting all or part of your life insurance policy into money you can use today may help you meet current and future financial needs.