1. Social Security Benefits
The full retirement age ranges anywhere from 66 to 67 years old depending on when you were born. The amount of your Social Security benefits depends on when you choose to start receiving benefits. The older you are when you start receiving benefits, the more you will receive per month.
Check your earnings on your Social Security Statement each year to determine your eligibility and your benefit amount. It doesn’t matter if you take benefits before full retirement age with a lower monthly amount or you take it past full retirement age with higher monthly payments, your benefits will last for as long as you live. During this time, your benefits will be adjusted to coincide with inflation.
2. Taxes
Depending on your income, you may have to pay federal income taxes on your Social Security benefits. You can choose to have taxes withheld. You can continue to work and still receive retirement benefits. Depending on the amount you earn before full retirement age, a part or all of your benefit amount may be temporarily withheld. At full retirement age, your benefit amount will be recalculated to take this reduction or withholding into account.
There are some cases where earnings can increase your benefit amount. If you earn more income in the latest year out of 35 years, your benefit amount will be recalculated and you will be paid any increase due.
3. Medicare
Remember to sign up three months in advance of turning 65 for Medicare even if you choose to receive retirement benefits at a later age. If you are covered by a health plan provided by work, special rules may apply. It’s important to know all the ins and outs of Medicare in order to avoid possible lifelong penalties.
4. Social Security Disability Benefits
There is a possibility of receiving Social Security Disability benefits. If you have a mental or physical disability and are unable to work and meet certain eligibility requirements, you may be eligible for Social Security Disability benefits.
5. Benefits for Family Members
Your family may be eligible for benefits included in your record. Family members may even be eligible for survivor benefits. If you earn more than your spouse when you claim benefits affects the surviving spouse’s benefits.
Just remember that Social Security should not be your only source of income in retirement.
6. Debt and Cash Flow
Let’s discuss your assumptions for retirement spending, your debt load, and financial picture. This includes; do you have a retirement budget?
