Tag Archives: working after retirement

A Good Plan Can Ease Transition to Retirement

When people talk about retirement planning, they’re usually talking about money. But there is another aspect that people often forget. What will you do with all that newfound free time?

Sure, after decades of hard work, thoughts of sleeping late and taking it easy seem pretty good. But retirement is a big transition, and many retirees don’t consider its potential psychological consequences.

steps to ease transition to retirement

Create a Plan and Schedule

While you may have some complaints about your job, it is an important part of your life. It helps define who you are and can give you a sense of accomplishment. It provides structure, mental stimulation and social interaction. Leaving the workforce creates a big void, and watching daytime TV or frequent trips to the grocery store may not be enough to fill that void. Empty or aimless hours can lead to boredom, disenchantment and even depression.

You may have a long list of things to do, places to go, books to read, but it won’t mean much if you don’t act. To successfully manage your time, you’ll need to actively plan and create a schedule. Set down how you will spend each day of the week, blocking out time for chores, social engagements, hobbies and exercise. Sticking to a schedule will give your days structure and give you a sense of purpose.

Stay Active and Engaged

For most people, staying busy and remaining socially engaged are essential to a satisfying retirement. That’s why some retirees go back to work full-time, while others opt for part-time or seasonal jobs.

But a retirement job doesn’t necessary mean continuing to do the same old thing. Retirement is an opportunity to reinvent yourself. Do something you’ve always wanted to do, something fun and challenging.

Hopefully, you’ve planned your retirement so you won’t need to work to meet basic needs, so your retirement gig won’t have to pay a lot. In fact, maybe the job for you is one that doesn’t pay at all, at least monetarily. There are countless organizations looking for volunteers, so it shouldn’t be hard to find opportunities that match your skills and interests.

Volunteering just a few hours a week will give you something to look forward to and keep you connected to the outside world. And studies show that it can improve both your mental and physical well-being.

Exercise Your Body and Brain

Regular exercise not only keeps you physically fit, it also increases your sense of well-being. Whatever you do to get exercise, make it part of your regular schedule. Consider taking a fitness class at a local gym, which also adds a social element to your workout. (And you can up the ante by trying something new, like a martial arts class.)

Don’t forget to exercise your brain. A course or workshop can help you discover a new side to yourself (the painter, the mystery writer, the master of topiary). You may want to enroll in classes at a local community college or even return to school full-time.

Whatever you do, make sure it’s part of a plan – a plan for a happier retirement.

Retirees: Know Your Post-Retirement Earnings Limit

forjuly1As a New York State and Local Retirement System (NYSLRS) retiree, it’s possible to work a public job after retirement and receive your pension, but there are limits to your post-retirement earnings. If you’re self-employed, work for a private employer, work for another state, or work for the federal government, you don’t have to worry about post-retirement earnings. You can earn as much as you want in your new job and still collect your full NYSLRS benefit.

But if you collect a NYSLRS pension and want to return to work in the public sector, there are two sections of the Retirement & Social Security Law (RSSL) you have to comply with that deal with post-retirement earnings.

Section 212

Under Section 212 of the RSSL, you may earn up to the annual amount set by law. The limit for 2015 is $30,000. Typically, your earnings are not limited in the year you reach age 65.

However, if you are under the age of 65 and earn more than the Section 212 limit during a calendar year, you may:

  • Pay back NYSLRS an amount equal to the retirement benefit you received after you reached the mandated limit. If you continue to work, your retirement benefit will be suspended.

OR

  • Rejoin NYSLRS, in which case your retirement benefit will stop.

Section 211

If you return to work and earn more than the Section 212 limit, your pension will be suspended unless your public employer requests a Section 211 approval for you. This will allow you to continue receiving your retirement benefit without reduction.

Section 211 approvals are given for a fixed period of time, normally up to two years.

If you earn more than the Section 212 limit and do not get Section 211 approval, your benefit will be reduced or suspended.

If you have questions about working after retirement, please read our publication, What If I Work After Retirement? (VO1648).