If you’re worried about making your money last your lifetime, then continuing to bring in some cash through a job, even if it is part time, can be a huge help. Let’s say you take on some work that gives you enough income so you’re able to reduce your IRA withdrawals by $15,000 a year for 10 years.
Okay, so you delay making that $15,000 IRA withdrawal for 10 years and thus keep the money growing tax deferred at an 8% annualized rate. At the end of that 10-year stretch, your IRA will have nearly $220,000 more in it than it would if you had been withdrawing $15,000 a year instead.
One point to keep in mind: if you take early Social Security benefits (anytime between age 62 and your full retirement age), each dollar of income you earn above $15,120 each year will reduce your Social Security payout by $1 for every $2 you earn over the limit. Once you hit full retirement age, working won’t affect those benefits.