The mantra of investment commercials focuses on preparing baby boomers who are close to retirement age with the wisdom and knowledge to retire with enough income to enjoy the good life. Indeed, limiting risk is just as important to retirement planning as it is to estate planning. Because of this, there are several things that soon-to-be retirees should keep in mind as you plan for the next stage of your life.
Know about your pension benefits – It is important to understand the different ways that you may receive a pension. Believe it or not, there can be up to 10 ways to take advantage of your benefits. This would require a conversation with a human resources director or benefits specialist to learn what would be best for you.
Know what health care entails – When you step away from your employer, chances are that your health benefits will end. The period for signing up for Medicare Part B seems long (8 months) but it can end in a hurry. If you are not eligible for Medicare, then learn about your options under your employer’s COBRA plan.
Know how Social Security may harm, or help you – Under federal law, a retiree older than 62 and younger than 65 can earn up to $15,120 without any effect on their benefits. After which, benefits are reduced $1 for every $2 earned. Retirees age 66 and older may earn up to $40,080 before benefits are reduced. This calculation is important in order to avoid any demand for repayment.
If you have questions about how retirement may affect your estate plan, an experienced attorney can assist you.