6 Important Things to Learn About as You Approach 65
Are you approaching 65 soon? We’ve got you covered! This article will discuss six important things you need to learn when approaching 65. Turning 65 is a significant life milestone. Not only is 65 the typical Medicare age, but it’s also the time when you may be considering retirement. We’ll cover Medicare and retirement topics that you need to be thinking about.
Prepare for Medicare
As you approach 65, the most important thing you can do is prepare yourself for Medicare. It’s the most common healthcare coverage for those 65 and older and those younger with disabilities.
Did you know you can begin to enroll in Medicare even before your 65th birthday? You can sign up for Medicare three months before you turn 65. You can also enroll during your birthday month and the three months after you turn 65. In total, this is a seven-month window to get enrolled in Medicare. Be aware of this important enrollment period because you could face late-enrollment penalties if you need to enroll and miss it.
Original Medicare coverage consists of two parts, Part A and Part B. However, there is also Part C which is known as Medicare Advantage and Part D which is prescription drug coverage.
Consider Additional Medicare Coverage
As mentioned above, Medicare Parts C and D are optional coverage. That is because they are additional coverage and are offered by private insurance companies. There are also Medigap plans that supplement your Original Medicare plan. It is wise to compare Medicare Advantage and Medicare Supplement plans to see what works best for you as they quite different from one another.
You prevent yourself from paying so much in out-of-pocket healthcare expenses by learning about additional Medicare coverage. Original Medicare does not cover 100% of your healthcare costs; thus, additional coverage can be cost-effective.
Review Social Security Benefits
If you have not begun to collect your social security benefits yet, now would be a great time to review them and decide when you will start taking them. The full retirement ages differ based on what year you were born. For example, the full retirement age if you were born from 1943 to 1954 is 66. If you were born from 1955 to 1960, the full retirement age would gradually increase until you reach 67. For those born in 1960 or later, it is 67.
Learning about how accepting benefits at certain times affects you is very important to learn as you’re approaching 65.
Look Over Your Retirement Accounts
Even if you’re planning to work past 65, it’s always good to look over your retirement accounts. Especially to determine if you want to increase how much you’re currently saving or make sure everything is appropriately allocated. Does it still align with when you’re preparing to retire if you have a target retirement date?
If you have a financial advisor, you could meet with them to evaluate your accounts and talk about maintaining your lifestyle in retirement. A big hurdle in retiring is understanding all the deadlines and penalties that deal with your retirement account.
Update Your Estate Planning
As you approach 65, you’ll want to update your estate planning. If you don’t have an estate plan, a financial power of attorney, or a will – start arranging.
If you have an estate plan, are your beneficiaries up to date? Have you had any changes in your personal life? Is there a major life event that happened? Keeping up with this will ensure your assets are in accordance with what you want.
Having your estate in order when you pass makes it easier on loved ones during that difficult time. You will know your family is prepared.
Look Into Tax Breaks
Did you know once you turn 65 that, you qualify for a larger deduction when you file your income tax return? There are also local or state tax breaks available. In addition, there are senior property tax exemptions. You can check the local tax rules in your area to see what tax breaks you may qualify for.
There are lots of essential things to learn as you approach 65. If retirement is on the horizon for you, these things we covered will especially be important. Also, don’t forget to enjoy yourself. Take a vacation you’ve wanted to take, spend extra time with your loved ones, and do the hobbies you didn’t get that much time for while working. This is also a time to enjoy life!