Financial Planning for Working Seniors: How to Make the Most of Your Income Over 60

Turning 60 isn’t a time to dread becoming older, but a time to create new practices and habits that can help us navigate this new chapter with more skill, freedom and even a bit of grace. Whether you’re employed full time, retrenched from full-time work and earning part time or taking on casual gigs in retirement, wise money management can help you get the most out of your dollars and ensure financial peace of mind.

Why Financial Planning Still Matters Over 60

Even if you’re already retired once, having an active income flips the equation. In general, many seniors in their 60s and beyond have a mix of income sources to draw on, including social security or pension income, personal savings, and wages from continued employment. The challenge is to determine how best to juggle this mix to fund your lifestyle today and protect your future.

1. Reassess Your Financial Goals

In this stage of life, the financial goals you set for yourself will probably look different than those you set back when you were in your 20s, 30s, 40s, or 50s. Perhaps you’re doing so to boost your retirement fund, pay the bills, try new activities, or just keep busy. Maybe you want to see the world a bit more, shrink your home size, or leave some financial love for your loved ones. Determining what is most important to you can shape how you prioritise your saving and spending approaches.

2. Review Income Sources

Many senior citizens would do well to have a variety of sources of income. These might be: income from a part-time job or freelance work, your monthly pension, social security benefits, investment or rental income, and withdrawals from retirement accounts. Knowing how each stream feeds into your overall financial picture and how they play with tax rules is crucial to maximising your take-home pay.

3. Understand Tax Implications

Earning income after retirement may push you into a higher tax bracket and could affect the taxability of your social security benefits. If your combined income exceeds specific thresholds, a portion of those benefits becomes taxable. Additionally, once you reach age 73, you're required to take minimum distributions from certain retirement accounts, which also count as taxable income. With the help of a tax advisor, you can structure your withdrawals and earnings in a way that minimises your overall tax burden and ensures compliance with retirement regulations.

4. Contribute the Most to Retirement

In your 60s: Continue contributing to retirement accounts such as a 401(k) or an IRA if you continue to earn income. Indeed, those 50 and older are eligible to make “catch-up” contributions, which can help you put away even more money each year and may help you increase your retirement savings. Take advantage of any 401(k) match that your employer provides — it’s basically free money kicked into your future nest egg.

5. Budget for Longevity

As we live longer, it is essential to plan for a retirement that can span decades — 20 years or even 30. This should be factored into your budgeting alongside anticipated increases to health care, potential long-term care requirements, and how inflation will affect your money over time. A well-optimised financial plan is one that ensures your money will last as long as you need it to, while allowing you to enjoy your chosen lifestyle.

6. Keep an Emergency Fund

An emergency fund is still key to financial security at any age. The peace of mind of having six- to 12 months’ worth of living expenses socked away in a liquid savings account? It’s also a way to deal with unexpected costs — medical bills, urgent repairs, or unexpected income breaks — without raiding retirement accounts or burdening yourself with needless levels of debt.

7. Avoid “Lifestyle Creep”

With each promotion or new income stream you acquire, the temptation to increase your spending increases as well. But “lifestyle creep” can make it difficult to save or maintain financial security. To maintain financial stability, prioritise your needs over your wants, automatically save or pay down debt, and view any extra income as an opportunity to boost your financial cushion rather than enlarge your spending habits.
 
It’s not about cutting back in your 60s; instead, it’s about making thoughtful, intentional decisions. If you are in it out of necessity, passion, or both, your income remains a lever. By taking the right approach, you can make sure that it will be there for you to support your goals, maintain your independence, and provide you with the freedom to live life on your terms.

Considering getting back in the workforce or figuring out your retirement strategy? There’s no better time than now to seize control and make every dollar count.

How Diverse Jobs Matter Supports Seniors in the Workforce

At Diverse Jobs Matter, we are committed to the principle that no-one is ever too old to work. Experience, dependability and wisdom are three things a lot of employers are actively looking for. Our job board is an age-inclusive service which offers a safe space for job seekers over 60 to access an employment-matching portal that offers connections to a range of age-friendly careers across multiple sectors.

We work with modern employers who are proactive in the fight against age discrimination and who value experienced employees, but we can’t directly control what each company we work with does. We are, however, extremely passionate about doing everything we can to make sure our job listings are as open to all candidates as possible. Whether you’re seeking a flexible remote job, part-time work, or a second career that fuels your creative soul, Diverse Jobs Matter connects you with companies that see potential in you rather than rolling their eyes at the year you were born.

We also provide resources, including CV writing services, which are suitable for older job seekers, career coaching, and advice on how to apply for jobs with confidence. We are here to enable everyone aged 16-75 who is passionate and driven to succeed in the modern workplace.

Go to DiverseJobsMatter to browse our other job sources. co.uk and find out how the next chapter could be your best.

Financial planning in your 60s isn’t about austerity, it’s about making informed, intentional choices. Whether you are working because you have to, you love to, or both, your income still has an influence. With the right strategy, you can make sure it will support your objectives, maintain your independence, and provide the freedom to enjoy life on your terms.
Considering getting back into the workforce or rethinking your retirement plans? Let Diverse Jobs Matter assist you with your next move. Because there’s no age limit on talent.