New data published by USA Today reports that one out of six retirees are considering trying to region the workforce. That’s on top of many who already have in order to try and make ends meet. However, before you join the stampede, consider some of the cons, risk, and alternatives.
Trying to keep up financially appears to be the big driver of this rush to unretire and find a job.
Hyperinflation has made life far more expensive than most expected, planned, or saved for. With the Fed planning another couple of rate hikes, it’s quite likely that living costs will only escalate before we can hope they get better.
At the same time many have found that their retirement nest egg has been destroyed due to investments in the public stock market. Many may be finding their retirement account balances now down by over 30%. When coupled with higher taxes, and inflation, their real financial power may be down 50% or more.
New Census Data reports that at least a third of Long Islanders are considered cost burdened. Many homeowners, and renters may be paying over 50% of their income in housing. That just isn’t a good financial spot to be in.
The Risks Of Coming Out Of Retirement
This is probably one of the worst moments to try and come out of retirement in the past 40 years.
For a start, there are few jobs. Most employers are making massive layoffs and are instituting hiring freezes. A trend which only seems to be growing.
So, it may not even be possible. The good paying jobs also seem to be in AI or new fields in which you have no skills or experience.
Then there is the need to consider the tax consequences, and reduction or loss of any benefits.
If trying to go back to work for an earned paycheck doesn’t really seem to make sense, or isn’t possible, what are the alternatives?
One is simply to find savings on everything you are paying right now. Such as property taxes. As many as half of Long Islanders may be eligible for significant property tax reductions and savings this year.
Acquiring more investment properties may be a smarter solution than going back to work or trying to hold onto stocks that are tanking. This can provide tax benefits, passive income, and a strong foundation for your savings.
While highly controversial in some towns, if you can’t afford to buy more rental homes, you may be able to rent out space in your existing place for more income, including a basement apartment.
If you can move more of your retirement money into real estate this is a great time to find and negotiate better priced deals and discounts. Then challenge the property tax bills on those properties to find even more income and profitability.