Retirement

What a Good Retirement Plan Needs To Have

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In order to be able to have a good retirement in the time after your career is over, there are several things that you must do as well as things that you need to consider in order to make this time in your life a time to enjoy your family as well as any hobbies that you might have. These plans must be considered when you first begin your career.

Social security

After having Social Security removed from your pay your entire career, retirees are going to now collect your payments. This is the foundation for your retirement income and the rest of your retirement plans needs to be built around this. Currently, you can start collecting social security at 63, or 65 or 70. But it just doesn’t appear in your mailbox – you need to apply for social security to start coming to you. No one will tell you this, so now you know – you need to apply for your payments. The younger you apply the less your check will be. The later you apply the more your checks will be.

Age and social security

The age when you will collect social security makes a major impact on the dollars you ultimately get from this program. The age that is known as your key full retirement age is different depending on the year you were born and your retirement age.

For children

If your spouse dies when you still have children at home, you will not only get social security for yourself but each child who is 18 years or younger also will receive a check until they finish college. If there are disabled children older than 18 they may receive benefits for the rest of their life from your spouse’s retirement account.

Medicare

As we all know medical health care expenses grow the older you are. Often these expenses can be significant if you have ongoing health problems. This can significantly hurt your retirement savings. Medicare was made a law in order to make sure that your medical expenses didn’t wipe out your retirement. Currently, there are healthcare plans that are being put into place by the United States so healthcare insurance may be changed before you are retiring. Just remember that 3 months before your 65 birthday is when you need to apply. Waiting until you are older can make premiums higher.

401(k) plan

Those who are working and contributing to a 401(k) plan will get employer contributions, breaks on taxes and the chance to have money withheld from your paychecks before it gets to spend. Any worker who is in the 25% bracket for taxes and pays the max amount of $18,000 in 2015 will be able to save $4,500 on federal income tax. Those who are age 50 or older can catch up on contributions to $6,000 in 2015 and this will save you even more in taxes.

Changes with some careers

If you are a teacher, in the military or work for the railroad in the United States things are different so you will need to look into any of these professions to see what other benefits you are eligible for.

After these programs, there are many more ways to save for retirement and you should meet with an insurance retirement rep when you are ready to start making plans for your retirement.

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