AARP can lift your spirits, enlighten you about Retirement and applying for your Social Security Benefits. They will show that this next stage in life can be very fulfilling and adventurous.
Retirement allows you to leave your secular job or open your own business. You can also try the following:
- Secure a part-time job for extra money along with your Social Security Benefit.
- Participate and volunteer for your various charities.
- Travel to the vacation resorts you’ve always dreamed about.
- Sit in your home and read, sip your favorite libation or just relax with your new found freedom.
Before you can retire, it’s time to talk to your partner or spouse about how and when you’re going to retire. Discussing Retirement and Money Issues. Now is the time to sit down and make a list of your finances which should generally include items like this below:
- What is your daily, weekly and monthly expenses?
- How much income is coming into your home?
- What debts and interest rates need to be resolved?
- Can you pay off those debts before you retire?
- Funds spent on nonessentials can be saved for retirement.
- If you are living above your income, now is the time to cut back on the spending and save.
Retirement and Health Care Expenses
Gradually changing to a healthy lifestyle of exercising, eating and sleeping habits help reduce the visits to the hospital and doctors office. Health care costs have skyrocketed over the last decade. The insurance companies have co-pays for the doctors, hospital stays, medicines and use of their equipment for the home. AARP has a Health Care Cost Calculator that can give you an estimate about how much you may need and spend on health care during retirement.
Social Security Benefits
You can easily apply online for your Social Security benefits: AARP has a Social Security Benefits Calculator that will give you insight on how much you will receive if you retire between the ages of 62 through 70. Calculating this part of your retirement income is important so you can gain the maximum usage of your hard earned money. Your benefits are reduced 25 percent if you retire early but you receive full benefits at your specific retirement age.
Your Social Security Benefits may be Taxable Income
When you have reached your specific retirement age your social security may be tax-free. The IRS has a ceiling limit on how much you can earn while collecting benefits. If your income is more than the IRS’s limit according to the state you live in, your income will be taxed. There are a question and answer segment on their website about how and why your benefits are taxed. The explanations are clear and easily understood. When you decide to have your taxes withheld call Social Security at 800-772-1213. The Voluntary Withholding Request W-4V form can be filled out online. You have the choice of withholding 7, 10, 15 or 25 percent of your taxable income. The TaxFoundation.org. That is based in Washington, D.C. Lists the states that tax social security benefits.
Social Security Resources
The Social Security website has a wealth of information regarding social security benefits. Social Security provides a handbook about When to Start Receiving Retirement Benefits. You want to open My Social Security Account to keep track of your financial information. Social Security Administration, www.ssa.gov,. Call between 7:00 a.m. and 7 p.m. to speak to a live person Monday through Friday at 1 800 772-1213 to answer your questions. The populace of seniors has reached the millions and the business sector is catering to them.