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It’s not uncommon to want to return to work after retiring.
Whether for financial reasons or personal fulfillment, many older Americans find that retirement isn’t working for them. Yet before you make the leap, it’s worth considering how that extra income could affect other parts of your financial life.
Of workers age 65 or older, 40% had previously retired at some point, according to a 2019 report from Rand Corporation. Roughly 10 million workers are in the 65-and-older crowd, or 17.9% of that age group, according to the most recent data from the Bureau of Labor Statistics.
Of course, extra income in and of itself isn’t bad.
“If you earn even $5,000 and it means you don’t have to take $5,000 out of your retirement savings, that’s money that can be invested,” said certified financial planner David Demming, president of Demming Financial Services in Aurora, Ohio. “It puts less stress on your asset base.”
However, depending on your situation, the extra income may have a negative impact on your financial health.
Here’s what to know.
If you tap Social Security before your full retirement age (as defined by the government) and are still working or return to work, your wage income could reduce your benefits.
While delaying Social Security for as long as possible means a higher monthly check, many people take it as soon as they can — at age 62 — or soon thereafter.
“Anyone collecting Social Security and under…