The Facts about Part-Time Income in Retirement, Ep #83

<p>Should you consider a part-time job when you retire? What about utilizing passive income streams? How does a passive or part-time income in retirement impact your social security benefits? I share some facts about social security benefits in retirement—and how they might be impacted by an income—in this episode of Retirement Made Easy. Don’t miss this one!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[5:57] My thoughts on becoming an Uber driver</li> <li>[7:20] Start with a retirement budget </li> <li>[9:43] The social security income rule</li> <li>[11:11] Are you interested in rental properties?</li> <li>[14:07] Turn what you enjoy into an income opportunity</li> </ul> <h2>Start with a retirement budget</h2> <p>What are your fixed expenses (utilities, health insurance, etc.)? How much do you want to spend in retirement on discretionary expenses (golf, travel, eating out)? Let’s say your fixed and discretionary expenses total $5,000 a month. Let’s also hypothesize that your home is paid off and you’re debt-free. Your net joint social security income is $2,000 per month. That means $3,000 of retirement income needs to come from a retirement portfolio.</p> <p>But what if you aren’t ready to draw from your retirement income? What if you’d rather work a part-time job while you still can? Or do you feel you need to work? You need to make sure that the income that you make won’t reduce or impact your social security income. </p> <h2>The social security income rule</h2> <p>If you’re receiving social security income prior to your full retirement age, there’s an earnings limit that you can make which is $19,560 as of 2022. What does this mean? If you’re 62-years-old, working, and collecting social security, you can earn up to $19,560 and it will <em>not</em> impact your social security benefit. If you’re collecting social security and you’ve hit full retirement age, there is no earnings limit. You can make as much earned income as you want. Make sure you’re familiar with this rul