Will You Need to Work Part-Time After You Retire?

http://www.myfederalretirement.com

20 per cent of future retirees expect part-time work to be a major income source

in retirement -- twice the 10% who had the same expectation in April 2001,

according to a recent Gallup poll.

Reasons why future retirees may need to work

after retirement

"Numerous economic trends indicating that they may not be able to retire and

live comfortably without working," are perhaps the most likely reason, says

Dennis Jacobe, Ph.D., Chief Economist for Gallup

Waiting too long to accurately project what retirement income and expenses

will be during retirement often brings surprises for future federal

retirees.

Rising health care costs, inflation, and the trend of

living longer during retirement (thus outliving supplement savings like the

TSP) are other issues that many federal employees stated in the recent My

Federal Retirement Reader Survey.

Outside of financial concerns, many of the soon-to-be-retired are considering

part-time work because they are in better health than retirees in the past, and

may want to stay active or do something they enjoy while providing additional

funds to their retirement nest egg.

What shoud you consider?

BEWARE: Caution for returning to work in the federal sector

While a House bill was introduced September 2007 to change this, under

current law, if retired federal employees return to work as part-timers, they

either must suspend receiving their annuities or receive a salary reduced by the

amount they would have received from the annuity. According to public

records, this bill has not yet moved from the introductory stage. The

Office of Personnel Management has provided some exceptions to this. Do

your research. You also may consider becoming an outscourced or "contract"

employee for federal agencies.

Review the multi-part series of lessons for finding "Your