By Sharon Wagner
Retired and want to work part-time? A job keeps the golden years interesting and helps older adults stretch their retirement savings. However, most retirees don’t want to head back to the office full-time. Instead, they’re looking for a part-time encore career that stimulates their mind, pads their pocketbook, and leaves plenty of free time for enjoying their senior years. But does flexible, well-paid, and interesting work for seniors really exist? You bet! But first, here’s what seniors need to know before they jump back into the job market.
4 types of jobs for seniors
What type of work is best suited to a seasoned professional? It depends what you’re looking for. Whether you want to maximize your income or your enjoyment, these are the best types of jobs for older adults.
- Consulting: Consulting lets retirees leverage their career into flexible work.
- Seasonal and temporary jobs: From tax prep to working at a ski resort, there are all types of seasonal jobs for retirees who prefer to keep vacation season-free.
- Home-based jobs: For homebodies and adults with disabilities, home-based jobs are a godsend. Retirees can freelance or find a part-time remote job.
- Gig work: Just looking to earn some extra pocket money? Gigs like pet sitting, childcare, rideshare driving and hobby businesses are ultra-flexible and fun.
Selling yourself on the job market
Worried about landing a good job at your age? While age discrimination is against the law, older workers know that getting hired in your 50s and 60s can be a challenge. To increase your odds of landing the job, emphasize recent experience, especially tech skills, and frame your age as a competitive advantage. Older workers should also embrace their network, using industry events and LinkedIn to rub elbows and learn about new opportunities.
What about starting a business?
As the AARP explains, many older adults are opting to start a business rather than work for someone else. While you might think it’s too risky to start a business this late in life, there are things older adults can do to protect their assets while scratching the entrepreneurial itch. For one, incorporating as a limited liability corporation, or LLC, protects the owner’s personal assets from business debts. Filing requirements for an LLC are simple in most states, although it is important to run a search and ensure your chosen business name isn’t already in use.
The other key to minimizing risk when starting a business late in life is not draining your own savings to do it. While it’s possible to tap an IRA or 401(k) to fund a business, NFIB points out that it’s a risky move. Securing outside funding from a business loan, equity investment, or crowdfunding is a more prudent choice for retirees.
Key tax tips for the self-employed
As a longtime employee, you didn’t have to worry about the intricacies of your pay stub. However, independent contractors and self-employed professionals have different tax responsibilities than company employees. These include paying self employment tax and making quarterly estimated tax payments.
Reducing your tax burden requires knowing what you can deduct and how to deduct it. Since filing self-employment or business taxes is more complicated than your standard tax return, retirees should seek tax help from a firm like Retirement & Estate Advisors & Professionals. With the right tax preparation and planning, you can be sure you’re paying what’s due and not a penny more.
Older professionals have lots of opportunities for well-paid, interesting work after retirement. However, finding the rewarding work you’re looking for may require extra effort when it comes to planning and taxes. Whether it’s freelancing, picking up a gig, or starting a business of your own, make sure you understand the steps you need to take to start growing your retirement income.
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