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In
the past, Americans looked forward to retirement. They made
plans to travel, spend time at the fishing hole and enjoy
the grandkids. Now, more and more of us are delaying retirement
just to get by.
While this column will offer suggestions for retirement planning,
you always need to check with your financial planner or family
members to decide which retirement strategies work best for
you. Tax consequences can be significant—always do the research
or check with an expert.
Social Security Benefits
Should you decide to begin receiving your Social Security
benefits before you reach “full retirement” age, your benefits
will be reduced permanently from what they would have been
at full retirement age.
Additionally, if you take early benefits and continue working,
your benefits may be reduced even more until you reach full
retirement age.
However, if you wait until your full retirement age to begin
collecting your benefits, you can continue to work and still
get your full benefits and perhaps even higher benefits, no
matter how much you earn.
For help in calculating whether early retirement is best for
you, log on to the Social Security webpage at
www.socialsecurity.gov and click on “Calculate Your
Benefits.”
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Pensions and Retirement Accounts
As with your Social Security benefits, you may want to delay
tapping into your pension and other retirement accounts. This
allows them to continue to grow to cover unexpected medical
costs or other expenses. Before making that retirement account
withdrawal, check with your financial planner so that you
don’t deplete your fund too quickly.
Reduce Debts as Much as Possible
Many senior citizens need credit cards to pay for medical,
pharmacy and other expenses. When living on a fixed income,
carrying a large credit card balance month to month may become
unmanageable, so try to reduce debts as much as possible before
you retire.
The rules and regulations governing retirement accounts can
be complicated. The FDIC suggests that a year before you plan
to retire, make an appointment with a Social Security Claims
Administrator to discuss your situation. You will also want
to sit down with your workplace personnel department and financial
advisor. After you decide on a retirement date, apply for
Social Security benefits and other pensions about three months
in advance.
And, remember, once you do retire, you don’t want to have
to run to the bank to deposit those Social Security benefits
and other pension payments. Plan to have them directly deposited
into your checking account. It’s safe, secure and affords
you more time to spend with the grandchildren.
CONSUMER TIPS is provided as a public
service by the Missouri Independent Bankers Association
AND
Community Bank of the Ozarks
P.O. Box 43
Sunrise Beach, MO 65079
(573) 374-5245
1-800-927-4314
www.cbobanker.com
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