Senior Living News

What Is Part-Time Work?

Companies often define part-time versus full-time jobs based on the number of hours an employee works each pay period. The federal government doesn't specifically define part-time work. However, the IRS defines a full-time employee as one who works an average of at least 30 hours weekly in a calendar month. That means a part-time job would be one where you work less than 30 hours each week, though the number of hours can vary widely. You might have a part-time job that only requires 10 hours a week or one where you work 28 hours.

Pros of Having a Part-Time Job in Retirement

Looking at the pros and cons of having a part-time job can help you decide. Some of the benefits include:

• Supplemental income: If your budget is tight, the part-time income could give you more breathing room. You might also use it to pay for fun extras, such as vacations or splurges, without dipping into your retirement funds.
• Companionship: Going to work gives you regular interactions with coworkers and customers to help fend off loneliness. You might find the social interactions to be energizing and enjoyable.
• Extra perks: Some part-time jobs come with perks. For instance, working at a store or restaurant could get you a discount on purchases made there, which saves you more money. If you work at a museum or other entertainment venues, you might get free admission passes.
• Mentally stimulating: The tasks you do at work engage your mind and can help keep your memory sharp.
• Fulfillment and purpose: Some people like to work to have a sense of purpose. You might enjoy helping people and making a difference.
• Exploration: Perhaps you always wanted to explore a different career than the one you pursued. In retirement, you can test out different industries or types of jobs for fun.
• Sharing talents: If you work in the same industry on a part-time basis, you can continue to share your expertise and influence the industry.

Cons of Having a Part-Time Job in Retirement

There are some drawbacks, however, to working part-time in retirement. To decide, compare the pros and cons to see which ones outweigh the others. Some cons include:

• Less free time: Many people think of their retirement years as a carefree time when they can do whatever they want, including trying new hobbies and socializing with friends. With traditional part-time jobs, you might miss out on that free time. Hours might be somewhat flexible, but you'll still be expected to work scheduled shifts regularly.
• Potential decrease in Social Security benefits: If you're drawing from Social Security, the amount you receive could decrease temporarily while you work part-time.
• Tax liability: The increased income could change your tax bracket, potentially causing you to owe more in taxes.
• Injuries: A part-time job that's physically demanding could result in an injury. For example, being on your feet for long periods could leave you feeling achy and tired.
• Stress: Even part-time jobs can be demanding and stressful. You might also feel more stress if you're trying to balance your part-time job with other responsibilities.

Should You Get a Part-Time Job?

Deciding whether to get a part-time job in retirement depends on your financial decision and personal preferences. Before working part-time, meet with a financial adviser to determine if the income will affect your Social Security benefits. The extra income you make might not offset the decrease in benefits.

Consider your budget, including the debt you owe and your current retirement income. Think about additional purchases you want to make and how those fit into your budget. Determine if extra income would help you reach your financial goals.

Your current schedule and routine could also help you decide. Look at the commitments you already have and how much free time is available for a part-time job. Consider how many hours you might work and how that would change your current routine.

Good Part-Time Jobs for Retirees

Choosing the right part-time job depends on what you enjoy and the skills you have. Your physical condition and any mobility limitations you have might also influence what types of jobs work well for you. If you've decided a part-time job is right for you in retirement, consider these options that might work for you:

• Pet sitter or babysitter
• School bus driver
• Crossing guard
• Receptionist
• Store clerk
• Home health aide
• Substitute teacher

You  might also continue in the same industry you're retiring from but putting in fewer hours. For instance, if you worked as a full-time accountant, you might take a part-time position. You can also work on a freelance basis for as many hours as you want. In the accounting example, you might find a few clients who need accounting help and work freelance for them.

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