You have been looking forward to retirement for years. Finally, you will have discretionary time to fill in any way you want. Maybe you dream of traveling the world. Maybe you can’t wait to take up a new hobby. Or maybe you plan to spend your time visiting friends and family.
Regardless of what you choose, the first thing you should do is set yourself up financially.
Claim Social Security
If you haven’t done so already, create your My Social Security account online. This is how you will be able to see and verify your earnings. How much money you get from Social Security will depend on what age you retire. You can retire any time between the ages of 62 and 70. Of course, you can always choose to retire early, but doing so will decrease the amount of money you receive.
You can apply to start receiving your benefits up to four months before you want them to start. Keep in mind that you have to be 62 for the entire month that you choose to claim your benefits. Apply online, by phone, or in person.
Sign Up for Medicare
Medicare is for people who are 65 or older, although younger people with certain disabilities can qualify. Medicare can help pay for regular healthcare costs and end-of-life care. Medicare offers hospital insurance (Part A) for free for people who have paid enough taxes to qualify. You can get medical insurance (Part B) by paying a monthly premium. If you choose to purchase a
Medicare Advantage plan, you will also get prescription drug costs, vision, hearing, and dental in addition to medical insurance. Part D only covers pharmaceutical costs. Whatever you decide, don’t postpone applying for Medicare because your Initial Enrollment Period ends three months after you turn 65.
Manage Your 401(k)
If you have been building a 401(k) plan through work or otherwise, you can start taking qualified distributions at the age of 59 ½. If you don’t yet need the money you can opt to hold your earnings in the account until needed. Your final option is to continue contributing to your account. To do this you will need to convert your 401(k) into an IRA (individual retirement account.)
During retirement, you can satisfy your every whim to your heart’s content! You have earned it! Just wait until you get yourself set up financially. You should be well on your way to a comfortable retirement with the combination of government programs and your own investments.
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