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Social Security Benefits: Here Are Major Steps You Must Take Before Your Retirement

Social Security Benefits
Social Security Benefits; Source- Forbes

If 2024 is your retirement year, you might be looking forward to that special occasion. And every day you might be getting more and more thrilled about it. Retirement might result in a significant shift in one’s financial situation because it may mean quitting your job entirely. Thus, it’s critical to get off to a solid financial start. In light of that, the following three actions are crucial to take as soon as you submit your resignation.

Social Security Benefits

Social Security Benefits; Source- CNET

Social Security Payments

Perhaps you’re used to making $95,000 a year. If that paycheck isn’t coming in, maybe you’ll be able to cover the costs of living with a combination of investments and Social Security payments. However, it’s crucial to properly manage your finances to prevent going into debt or prematurely exhausting your savings. Create a budget if you’re retired and have a better understanding of your basic living expenses so you can see what each item includes. You can evaluate your expenditures and confirm that the bills you are paying are ones that you ought to maintain.

Social Security After 62

With your outstanding mortgage payments, you may realize that staying in your house isn’t financially sustainable. You can enroll in Social Security at any age after you turn 62. However, until you reach full retirement age (FRA), you are not entitled to your entire monthly payment based on your individual wage history. To receive a higher monthly Social Security income, you can also postpone filing past FRA; however, this incentive expires as soon as you hit 70. If you want to retire before turning 70, it’s wise to evaluate your financial status and determine whether you should apply for Social Security right away. If not, delaying should result in a lifetime increase in your monthly benefit.

Eligibility For Health Care

Many people’s health insurance is dependent upon their employment. However, you can lose your eligibility for employer-sponsored health insurance once you resign. It’s critical to obtain coverage as soon as possible since, in the event of an accident or illness, not having insurance could result in crippling medical expenses. The age at which you can enroll in Medicare is 65. If your spouse is still employed and has health insurance through their employment and you decide to retire before the age of 65, you might be able to transfer to their plan. Alternatively, you might be eligible to use COBRA to pay for a certain time for ongoing coverage under your employer’s plan.

However, because COBRA requires you to pay for your health insurance on your own without an employer subsidy, it can be very costly. Still, if you don’t have a spouse’s plan to switch to and are a few months away from being Medicare-eligible, it might be a sensible option. Although you may be excited about approaching retirement at this point in your life, remember to take care of these necessary tasks as soon as that phase of life gets underway. In this manner, you can get off to a solid financial start.

 

 

 

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