What you should know about working during retirement
Make sure you know what options are available to you during your retirement years.
07:44 22 December 2013
Retirement does not need to be the end of your career. Many people decide to supplement their retirement income by working a few hours a week. Some even decide to continue working quite a few hours, which allows them to continue contributing to their retirement fund, many time with employer contributions as well.
Here are a few things to know if you plan to work past your retirement age.
- Employers cannot discriminate against employees based upon age.
- Decide if you want to remain with your current employer, or if you would like to try something different. If you want to remain employed make sure you have another job before giving notice to your current employer.
- You make your mind up to begin your own business, or turn a hobby into a business. If you choose to do that, make sure you consult with a financial advisor who can help you plan properly. If you take too many risks you could end up using too much of your retirement finances which could put your financial future in a precarious position.
- If you are not too concerned with earning more money, but you would still like to get out of the house for a while, this might be an ideal time to look into volunteer work. Your volunteering could make a significant difference in many lives, and non-profit organisations.
Things to remember:
- Your personal allowance may be reduced if you earn over £21,600 per year. If you decide to continue working, make sure that the monetary benefits outweigh the reduction of your personal allowance.
- You may lose your entitlement to means tested benefits such as Housing Benefit, Council Tax Support, and Pension Credit. Seek advice if you are unsure of how you will be affected.
- You may also be assessed taxes at the higher tax rate.