Setting goals are important in life. Especially at the start of the New Year, writing a goal down can help your mindset and increase the likelihood of success. For seniors looking to either semi or fully retire in 2022, this is a good strategy. USA Today’s Maurie Backman offers five more strategies that can help make 2022 the year of retirement.
Backman’s strategies are straightforward and serve as helpful advice. Their tips are as follows:
#1 Get the Best Social Security Benefits
One way to retire in 2022 is to strengthen your benefits. It’s possible to better your Social Security benefits through careful strategy. Putting off filing till full retirement age, or even later, increases your benefit significantly. Determine how ling you can wait to claim your benefit, and be aware that the earlier you claim them, the less they will be.
#2 Know What You Owe in Taxes
Taxes are forever, even in retirement. So, it is important to understand how taxes affect you, and potentially your benefits. Being fully retired, you live off a fixed income so your taxes will reflect that; being semi-retired, were you work less and collect benefits mean that your taxes will be bases of all forms of income.
#3 Know How to Withdraw Correctly
While the money in our retirement savings is our money, it can be dangerous to withdraw from accounts like Roth and 401ks too quickly. These accounts establish your retirement fund, so you want to allow these accounts to mature, not deplete too quickly, and avoid any penalties or extra taxes when you take your money out.
#4 Expect Healthcare Costs
Healthcare is easily one of the most common expenses for seniors. In 2022, along with inflation, Medicare costs are expected to rise. The higher the healthcare expenses the shorter your savings last. Incorporate any actual healthcare costs, and planned costs, into a budget to see how much you need to save.
#5 Build a Budget and Stick to It
Retirement is expensive so it’s vital to know what financial assets you have to work with. Set your costs and savings side-by-side and see if one’s larger than the other. It’s common to change lifestyles while in retirement. For example, moving to a cheaper state, downsizing your living arrangements, or taking on a passion project that brings in extra cash, are always to strengthen a retirement budget and minimize additional costs. These aren’t the only options either, as just having a simple way to track monthly expenses is an expert way to help your retirement savings last longer.
However, or whenever you fully retire, the Council for Retirement Security will work to defend your hard-earned benefits, so you can enjoy this new year and this new chapter in life.