Turning 70 is just as exhilarating as the beginning of a new decade. However, there may be some crucial retirement planning activities you need to take if you’re approaching 70 in 2024. What you should know is as follows.
Don’t Put Off Filing For Social Security
When you achieve full retirement age (FRA), you are eligible for your full every month Social Security benefit, depending on your individual income history. Your FRA is 66 if you were born in 1954 and will age 70 in 2024. It is actually to your advantage if you haven’t applied for Social Security yet, as you will receive a big increase in your monthly income. Your payments will increase by 8% for each year that you wait past FRA to file for Social Security. Therefore, enrolling at age 70 will now result in a 32% boost. To be clear, though, you should apply for Social Security at the same time as you turn 70. It is no longer possible for that monthly benefit to increase when you become 70. You will only be depriving yourself of qualifying income if you continue to put off filing.
It’s Your Choice To Stay Employed Even If You’re Getting Benefits
You might be getting ready to celebrate turning 70 and retiring the next year. If not, though, more power to you. There are numerous advantages to working longer. It might help your mental well-being and enable you to leave your nest egg untouched, which would allow your balance to increase even further. However, don’t think that after you apply for Social Security, you have to give up your job. At any age (actually, at any age beginning at 62, as that’s the oldest age at which you may file for Social Security), you are permitted to work and get benefits simultaneously. However, after you hit FRA, a job’s earnings have no bearing on your monthly benefits.
Mandatory Minimum Distributions Are Not A Concern For You
You never have to be concerned regarding RMDs (required minimum distributions) if your retirement funds are in a 401(k) or Roth IRA. But, RMDs will eventually apply if your funds are in a typical IRA or 401(k) plan. But before you have to take them, you have yet a few years left. RMDs were triggered at age 70 1/2 for a very long time. That age was moved back to 72 years old by a few years ago’s rule modification, and it has subsequently been raised to 73 years old for those born between the year 1951 and 1959. You do not have to undergo your initial RMD in 2024, even though it’s something you might want to start preparing for in that year. Seventy is a significant age to commemorate. So when your big 2024 birthday comes, go ahead & do it. However, keep these things in mind as well so that you can make wise financial choices that result in the retirement of your dreams.