Planning For Your Retirement

The main goal for everyone that has been working is to finally be able to retire. Planning for your retirement is important and helps you have a financially secure retirement.

There are post-retirement risks that have been identified that can affect your retirement that you need to be aware of. You need to know about these risks, how predictable they are, and how to manage the risks so they won't be detrimental to your retirement.

Because we are now living longer, we can plan on spending more time in retirement than our parents and grandparents. When you plan your finances, retirement will be more relaxing and you can enjoy the retired life.

Social Security provides a great retirement planner that takes you through the planning process step by step.

Learn More About Retirement:

Know your retirement age: No matter what your full retirement age (known as "normal retirement age") is, you might be able to start receiving your retirement benefits as early as age 62 or as late as age 70.

Estimate how long you might expect to live:

An important consideration when to begin collecting Social Security retirement benefits is understanding how long you might live. According to Social Security Administration data, a man reaching age 65 today can expect to live on the average to age 83. A woman turning 65 today can expect to live on the average to age 85.

Remember those are just averages and that about one out of every four 65-year-olds will live past the age of 90, and one out of 10 will live past the age of 95.

Use the retirement estimator and benefits calculator to look at different retirement ages and earning amounts:

The Retirement Estimator gives estimates based on your actual Social Security earnings record. You need to remember these are only estimates because your earnings may change, you might change careers, and your actual benefits will be adjusted for inflation.

Know what happens if you work after you retire:

You can continue to work while you get Social Security retirement or Social Security survivors benefits. If you do keep working, you could get a higher benefit in the future. The higher benefits might be important to you and your family later in life. 

How your earnings and pensions affect your Social Security benefits:

Throughout a lifetime, most people earn a living in several different ways. These different earnings such as different wages, whether you are self-employed, if you were in the military, worked on a farm, or worked outside of the United States, all have an effect on your Social Security retirement benefits.

If You Are Near Retirement Age:

Know your retirement options:

Learn how your family members may qualify for benefits:

When you begin receiving your Social Security retirement benefits, some of your family may also qualify to receive benefits on your record.

If your spouse or child qualify, they may receive a monthly payment of up to one-half of your full retirement benefits. These payments made to your family members will not reduce your your retirement benefit. Actually, the value of the benefits that your family might receive in addition to yours, might actually help you in deciding whether to take your benefits sooner rather than later.

Know how to apply for Social Security benefits and the documentation you will need to provide:

Are you eligible to apply for Social Security? Remember, you must be at least 61 years and 9 months old to apply for Social Security retirement benefits.

You need to apply for benefits no more than four months prior to the date you want your benefits to start. If you are already age 62, you may be able to start your benefits in the month you apply.

If you are not getting Social Security and you are not ready to retire, you still need to sign up for Medicare four months before your 65th birthday.

Apply for your Social Security benefits:

If You Are Near The Age Of 65:

Know how to apply for just Medicare before you reach the age of 65, whether you plan to retire or keep working.

Find out if your health insurance plan changes when you reach the age of 65:

Some health insurance policies might change your coverage once you turn 65. You should contact your health insurance company to determine if your insurance plan will change.

If you are getting Social Security benefits when you reach the age of 65, your Medicare hospital benefits will begin automatically.

What happens after you retire?

Part of planning for your retirement includes considering what would happen if.... after you retire.

What if you actually out-lived your retirement resources?

What if you experience unexpected health care costs?

What if you lose your ability to live independently?

What if your spouse dies?

These are just a few of the real events that could occur after you retire that could greatly affect your retirement finances and plans. You need to plan ahead for your post-retirement years and unexpected events.