Must know Retirement Benefits & Deadlines

Understanding Retirement Benefits

As you are planning for retirement, it is important to stay on top of certain milestones and deadlines. If you do not pay attention to the details, you are likely to face consequences and penalties that can be serious. Do you have a comprehensive understanding of your retirement investment plan? It is important to understand the right retirement investment options for you, based on when you plan to retire. It is also crucial to know when you can access retirement funds, the best age to start taking Social Security, when you can enroll in Medicare, and how you need to manage your retirement funds, based on your age. Are you planning to retire young? If you plan to retire before age 65, there is even more to consider. You will need to plan for health insurance, prepare to access savings or Social Security, and the ins and outs of working after retirement.

Between Age 50-60

If you retire early, it is important to consider health insurance. You will not be eligible for Medicare until age 65, yet without employer subsidy, health insurance can be extremely expensive. Will you have the option of being on the insurance of an employed spouse? Will you begin a second career and get insurance that way? Consider your options carefully before you take the step of retiring.

If you are late finding investment strategies for retirement, your fifties are a good time to catch up. The IRS will permit you to contribute additional amounts to your 401(k)s and IRAs, beyond what is typically allowed. In this way, you can help save a little bit more toward retirement. Another point to note is that once you turn fifty-five if you lose or leave your job, you may be able to begin taking distributions from your 401(k) without a penalty, although you will still have to pay taxes on the amount you withdraw. At 59 and ½ you can start withdrawing from employer-sponsored plans and IRAs without an early withdrawal penalty. Again, you may have to pay income tax on these withdrawals.

Between Age 60-70

At age 62, you can opt to begin receiving Social Security benefits. If you do this instead of waiting until you reach your full retirement age, though, your monthly amount will be permanently reduced. Retirement investment companies can help you make good decisions about moves like this, as well as give you good retirement investment ideas. Talk to a professional before deciding the right age for you to start taking Social Security.

Once you turn sixty-five, you qualify for Medicare. Most Americans do, and this will pay for a significant portion of your costs for doctor visits, hospital care, and other medical services. It can be tricky to navigate the various parts- A, B, C, and D- into which Medicare is divided, so this is another area for which you would do well to consult with a professional. The full retirement age is between 66 and 67, depending on when you were born. For those born between 1943 and 1954, it is sixty-six, while for people born between 1955 and 1959, the full retirement age is sixty-six plus two months for each year past 1954. For those born in 1960 or later, it is sixty-seven. At age 70, your maximum Social Security benefit is unlocked, so if you can wait until then to begin claiming benefits, you will be able to get the highest possible monthly payment.

Beyond 70

You contribute to your 401(k) during your working years, to lessen your tax burden. However, the government is eventually going to want to tax that money. If you do not start making taxable withdrawals from your retirement accounts once you are seventy, you can accrue heavy penalties. You can continue to invest after retirement, but if you are deciding on the best investment, retirement should make you rethink your strategies. Investment after retirement should focus on safe assets, reduce your risk, and keep your income safe. Talk to your retirement planner about the best way to stay on top of your financial goals, even after you have stopped working.

Starting a Second Career with Personal Savings

On the other hand, many retirees choose not to stop working. Instead, they embark on a second career. This is a particularly good option for those who retire early and can allow you to stay afloat without touching your retirement savings until it is financially beneficial to do so. This is another situation in which having a solid base of personal savings set aside for retirement can be beneficial. Having this kind of foundation in place allows you to pursue your passions, explore a new field, or experiment with something about which you have always been curious. You can invest in yourself using your savings, use the income from your new career for your living expenses, and save your retirement funds to use further down the road.

Need Advice?

When you need retirement investment advice, trust the firm that has served individuals and families in Phoenix, Arizona for over 15 years and is one of the best investment firms for retirement. Sun Cities Financial Group provides clients with high yields from insured and guaranteed deposits not available in traditional banks and brokerage houses, as well as comprehensive services, a personalized approach, and a transparent fee structure. In addition to working with more than 6,000 Federally insured banks, all covered by the maximum FDIC insurance protection, we also employ only dedicated and honest professionals committed to their clients’ best interests. Accredited with an A+ from the Better Business Bureau (BBB) for providing outstanding services to our clients, we have been in business since 1998.

Founded to provide safe and guaranteed returns to our clients, we protect our clients’ savings in ways they are not even aware of, and our staff gets excited about the clients’ reactions. When you invest with us, we will go above and beyond to exceed your expectations, and do the work so that you can reap the benefits by earning more interest while maintaining the safety of your principal. When you are ready to begin your journey towards a secure retirement by scheduling a consultation with retirement investment advisors who have your best interests at the heart of everything they do, contact us by calling 623-207-8423 or visiting our website to learn more.