Social Security Earnings Test, Ep #205

Are you preparing for a successful retirement? If you are, you’ll need to consider more than just your finances because 80% of a successful retirement has nothing to do with money. However, when people focus on retirement planning, money is often the only thing they focus on. In the retirement headlines segment this week, we’ll check out an article from Financial Advisor Magazine titled Right Way Retirement. This article takes a look at the non-financial aspects of retirement that many financial advisors miss when it comes to retirement planning. 

In the listener questions segment, I answer a question from Majid about working while collecting Social Security. Make sure to tune in until the end to hear how to complete the earnings test so that you will understand how much you can earn and how to avoid Social Security penalties.

Outline of This Episode

• [2:12] To plan for retirement you need to stay ahead of the curve
• [4:00] 6 items to focus on in retirement planning
• [8:03] Will income from a part-time job affect the amount of Social Security I receive?

Retirement isn’t only about the money

Robert Laura recently published an article in Financial Advisor Magazine about doing what it takes to create a successful retirement. The author noticed that most financial advisors that help people get ready for retirement focus solely on the financial aspect of this life change. However, retirement isn’t all about the money. He has noticed that advisors often have a blind spot for the areas of retirement that aren’t financially related. To truly prepare for retirement, people need to take a more holistic approach. 

6 ways to create a successful retirement 

1. Replace your work identity. Many retirees feel like they lose a significant piece of their identity when they leave the workforce. To combat this sense of loss, identify the specific areas of your career that you get fulfillment from. Then think of ways that you can parlay that area of fulfillment into your life in retirement. A couple of ways that retirees choose to carry on their former work identity in retirement is through mentoring or consulting.
2. Fill your time with meaningful tasks. Once you retire you’ll have a 40-50 hour space to fill in your week. Creating a retirement routine can help combat boredom. Try filling the gap with an active and healthy lifestyle. This will not only leave you fulfilled but healthier as well. 
3. Stay relevant and connected. When you leave work behind you also leave much of your social network. Retirement can be an opportunity to re-establish old connections and create new ones.
4. Keep mentally and physically active. You can do this by creating healthy routines.
5. Express your spiritual beliefs. Not everyone is religious, so if you're not, you could work on improving your mindset by cultivating a gratitude practice. 
6. Feel financially secure. If you’ve been listening to this show for a while, hopefully, you are well on your way to meet this goal. 

Create a plan to gain the most fulfillment from your retirement

Creating a retirement plan that addresses all 6 of these areas can help you create a greater sense of satisfaction with your life in retirement. You don’t want to get into the thick of retirement and discover that there is something missing from your life. Start a more holistic approach to retirement planning now so that you can create a meaningful life in retirement. 

Make sure to tune into the listener questions segment to hear about receiving Social Security while you are still working. You’ll learn just how important it is to know your full retirement age and how the Social Security Earnings test can help you keep the most from your benefit. 

Resources & People Mentioned

• Boomer Benefits
• Full Retirement Age from SSA.gov
• Exempt Amounts for 2021
• Right Way Retirement from Financial Advisor Magazine

Connect with Benjamin Brandt

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