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Important considerations before retiring

Dec 16, 2016 | Estate Planning

As we are a few weeks from a new year, many people may be considering what their new year’s resolutions will be. For some, losing weight will be most important. For others, getting a handle on finances and debt is critical. Both are important when it comes to retirement, as there will be millions more who turn 65 in 2017 and will look to retire. Do you think you are ready? This post will identify a few things to help you in your planning. 

Know how your pension benefits work – While not as many companies offer pension benefits compared to a generation ago, it is helpful to know whether a lump sum payment or monthly distributions will be best for you.  A conversation with your human resources director or benefits specialist would be helpful.

Plan for health care –Your health benefits will likely end when you separate from your employer. Because of this, you should be familiar with Medicare Part B as well as your options under your employer’s COBRA plan.

Know whether Social Security may harm, or help you – Under federal law, you may earn up to $17,000 without any effect on your Social Security benefits if you retire after age 62 (but before age 65). After you pass that financial threshold, your benefits may be reduced $1 for every $2 earned. If you retire after age 66 you may earn up to $42,000 before your benefits may be affected.

If you have questions about how retirement may affect your estate plan, an experienced lawyer can help.