If you’re turning 65 soon, retirement planning has kicked into high gear. This is a milestone age for many people, because you need to make three important decisions around this time. So if your 65’th birthday is approaching, make sure to put these items on your to-do list.
Get an estimate of your Social Security benefits. Your Social Security benefits are based upon a specific formula used by the Social Security Administration. An experienced financial planner or a Social Security representative can help you with this step. Since your retirement income will be based partly upon your Social Security benefits, you definitely want to obtain an accurate estimate of what you can expect. Your financial professional or Social Security representative can also help you to understand the potential benefits of delaying your claim a few more years to earn a larger monthly check.
Consider income taxes after retirement. If you’re getting ready to retire, remember that income taxes will still be a part of your financial plan even after you stop working. Meeting with a financial planner or tax professional can help you to anticipate your potential tax burden, so that you don’t face any surprises after you retire.
Investigate your options an enroll in Medicare. When you turn 65, you must enroll in Medicare (unless you still have health insurance coverage through an employer, in which case you can opt into Medicare as co-insurance, or not). But enrolling in Medicare can be a complex decision. You will choose between Original Medicare or a Medicare Advantage plan. Plus, your original enrollment window is the best (and possibly only) opportunity to obtain a Medigap plan. So take this time to investigate all of your options, and enroll in a Medicare plan (or plans) that work best for your situation. And remember, you can change your mind each year during the Annual Election Period or Medicare Advantage Open Enrollment.
For more information on your Medicare options, give us a call. We can help you understand the different plans available to you, and guide you toward the choices that suit your needs and budget.