3 Things You Need to Know in Your Early Sixties
Once you’ve reached your early sixties, you’re in the home stretch of retirement planning. But that doesn’t mean you should leap into retirement just because you feel like it! There are still important decisions to make that will impact your financial stability in retirement. Here’s what you need to know as you get ready to retire.?
You can claim Social Security at age 62. This is the earliest age at which you can claim your benefits. But just because you can, doesn’t mean you should. Claiming your benefits early can result in a permanent reduction of your monthly payments, up to 30 percent less than they would have been at full retirement age.?
Having said that, there are sometimes good reasons for claiming benefits early. Just remember that your decision will also affect your spouse, if they were planning to claim spousal benefits instead of their own.?
You can take withdrawals from your retirement account. Starting at age 59 ?, you can take withdrawals from your retirement account without incurring penalties. But once again, that doesn’t mean you should.?
Your retirement savings will continue to grow, depending upon the average rate of return you’re earning. Any money taken out of the account will obviously not earn interest, so leaving the money untouched for a few more years can make a major difference in the size of your nest egg. And since retirement could last two decades or more, most of us need all the savings we can muster.?
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You will be eligible for Medicare at age 65. If you retire before you turn 65, you will need a plan to cover healthcare expenses (which can be surprising and significant at this age). Health insurance can be expensive, so weigh your options carefully before retiring early.?
And when you do retire, remember that Medicare will not cover all of your medical expenses. You will still need to plan for co-pays, deductibles, and prescriptions, and services like dental and vision. Some Medicare Advantage plans do offer more comprehensive coverage than Original Medicare, but you will often pay a premium for those plans.?
If you’ve now reached your early sixties, it’s time to schedule a check-up on your retirement plans. Call us to schedule an appointment, and we will help you set a retirement date.?