Common Mistakes to Avoid When Taking a Retirement Job

While the perks of part-time work are enticing, retirees frequently stumble into a few predictable traps. Keep these pitfalls in mind as you browse job listings.

• Ignoring the Combined Income Tax Trap: The wages from your part-time job increase your overall Adjusted Gross Income. According to the Internal Revenue Service, if your “combined income” exceeds $25,000 for an individual or $32,000 for a married couple, up to 50 percent of your Social Security benefits become taxable. If your combined income exceeds $34,000 (individual) or $44,000 (couple), up to 85 percent of your benefits become taxable. Earning a small wage for free perks is great, but make sure the extra income does not push your untaxed Social Security benefits into a taxable bracket.
• Underestimating Physical Demands: Standing on a concrete floor for six hours at a retail job or handling heavy luggage as an airline agent takes a toll on the body. Be deeply realistic about your physical stamina. A job is not worth a free flight if it leaves you with chronic back pain.
• Letting the Job Dictate Your Life: You retired for a reason. Do not let a part-time job slowly morph into a full-time obligation. Be firm about your availability from day one. If the employer demands mandatory weekend overtime or holiday shifts that conflict with your family plans, be willing to walk away.