Reaching your 65th birthday is an important milestone in life that starts new chapters for individuals. Above all, it is the ideal age for retirement.
While this can be an exciting time for seniors, it can also be stressful. It’s important to have a good idea about your future plans and
finances when turning 65.
Decide if you’ll retire or will keep working to age 70.
Many Americans still choose to retire when they turn 65, though it has become common for seniors to keep working past this milestone. Give your working future some thought. Determine whether you plan to work into your seventies or prepare for retirement now.
Get a complete physical.
Your health is one of the most important things to track and maintain. If you have not yet had a complete physical, schedule one as soon as you turn 65. Having a doctor’s evaluation and recommendations can prolong your life and lead to a healthier, happier standard of living.
Get a health insurance plan.
As a 65-year-old person, you will have to start making decisions about your health care. It is important to plan ahead and get a health insurance plan in place, so you don’t have to worry about medical bills when you need it most.
Make a choice about whether you want to continue with your current health insurance plan or get a new one. Your health is of the utmost importance and you should take this into consideration when making your decision.
This is especially important if you have a risk of a serious heart disease (in example, heart failure and heart attacks) or other health complications, such as high blood pressure.
Similarly, if you’re a person with disabilities, the level of daily of activity you can do and your quality of life may be limited. All of these conditions may require you to pay a steep price for any relevant health services.
Therefore, having a solid health insurance plan will help you cover medical expenses, including the cost of nursing home or adult day care center.
Look into your Medicare options/benefits.
When you turn 65, you become eligible for Medicare and can begin the enrollment process. Depending on whether you’re planning to retire at this age,
you may need to reach out to your local Social Security office to manually enroll. Additionally, ask for help when it comes to deciding on which Medicare plan fits your needs.
Alternative: Look into Medicaid services.
Depending on your state, you may be eligible for Medicaid, which is a government–funded health insurance program.
Medicaid is an especially good option for low-income people. In most states, Medicaid can also be provided for recipients of Aid to Families with Dependent Children (AFDC) program. The number of people receiving this kind of care is increasing.
Get familiar with the terms ‘Medigap’, Medicare Advantage, Initial Enrollment Period, Open Enrollment Period, In-Network, and Out of Network.
Medicare can be a learning curve. It’s in your best interest to familiarize yourself with the different terms included in your healthcare coverage.
Learn about enrollment periods (both the initial enrollment period and the open enrollment period). Explore your coverage network (which doctors are in-network and which are out of network), as well as Medigap and Medicare Advantage.
This way, you’re well-informed and the new terms will not come as a surprise.
Look into taxes in retirement.
When you turn 65, you may be eligible for Social Security benefits. However, the amount of your monthly benefit is based on your work history. If you were not paying taxes during your working years, it will be harder to qualify for this benefit.
In addition, Medicare and Medicaid are only available to certain individuals with disabilities or low-income seniors. Some people may not qualify for these benefits and may need to pay taxes instead. These are important things to consider when turning 65.
Keep saving for retirement.
If you’re still a working individual, you can keep working on your retirement savings even after turning 65.
Retirement planning is important at any age. Whether you are saving for retirement or taking advantage of your employer’s 401k plan, you should make sure that you are doing everything possible to maximize your savings.
Later-in-life savings can still be beneficial for you even as you reach your 70th birthday. You may also be legible for the retirement savers’ tax credit.
While you can’t control the stock market, it is possible to make your savings more secure. Review your retirement plan and choose investments that will keep you financially secure when you retire.
Maximize your contributions in your IRA.
If you have not already done so, take a look at your IRA and 401k contributions. Individuals greater than 50 years old can add an extra $1,000 yearly to their IRA and $6,000 yearly to their 401k plan. If you plan on working past the standard age of retirement, this step will provide additional financial support when you choose to retire.
Research your social security benefits claim options.
Will you claim it at full retirement age, or hold off and collect a higher benefit for the rest of your life.
Much of this decision might relate to whether you plan to retire or keep working into your seventies. While 66 is “full retirement age,” many individuals choose to wait until their seventies to collect Social Security.
Benefits tend to be higher when an individual waits a few years past full retirement age to collect.
Look into a long-term care insurance policy.
It’s a good idea to prepare for the future. In case you need long-term care coverage in the future, it’s best to plan ahead. Invest in a long-term care policy with your insurance company.
Medical coverage such as assisted living and nursing care can be expensive, so it’s best to be ready and informed ahead of time.
Review your coverage options.
Review your current coverage options. Compare the costs and benefits of each option.
If you are a parent, you should be sure that your children are covered by an insurance policy as well. This is especially important if they will be attending college or starting their own careers in the future.
Take time to talk with them about the insurance options available and what additional coverage they require for college expenses and other needs, such as auto or homeowners insurance.
There are a variety of ways to protect your loved ones. Review the different types of coverage and learn how to get them. If you have children, it’s important to plan ahead and make sure they are covered by insurance.
Take care of your legal documents.
Make sure to have a written will and get a power of attorney. While 65 is still relatively young in terms of current lifespans, it’s good to be proactive and take care of all your legal documents. Assign a power of attorney over your affairs and have a
finalized by a lawyer.
Have a discussion with your loved ones about your end-of-life wishes.
Do you have proper life insurance or will your family take care of things out-of-pocket?
Nobody likes talking about end-of-life wishes, but they’re important to go over with your family and loved ones. Even if you have a will and power of attorney, go over your wishes with your loved ones. This way, there is no room for misunderstandings.
Cash in on senior discounts.
One of the positive perks of turning 65 is
the fact that so many establishments offer senior discounts. Ask about them at your favorite restaurants and stores to find ways to save money on purchases you already plan to make.
Check off items on your bucket list and get new hobbies. Enjoy life!
If you’re retiring, it’s a good idea to make
your retirement years as rewarding as possible. If you have ever wanted to take up a hobby you didn’t have time for or travel to a new destination, now is the time.
There are a variety of things to look forward to once you reach retirement age. To take full advantage of this period in your life, get an early start on these important tasks.
Go the extra mile and refer to a professional to help you with any issues that arise. Use the services of a senior advisor to make sure that you make an informed decision about this new stage of your life.
