Whether you’re two years away from retirement or five years away, it’s never too soon to start thinking about the steps you will need to take and begin preparing for them.
What is Your Expected Retirement Date?
While many people have an age generally in mind for when they would like to retire, it’s a good idea to get specific about when you think you will retire. This enables you to work backwards on how much longer you can actually plan to work, how much longer you can save for retirement, and when you will need to begin making the transition – which can take longer than you might think!
When Do You Plan to Take Social Security Benefits?
Knowing when and how to begin drawing on your Social Security benefits is a critical step in the retirement planning process. In fact, it doesn’t just affect your retirement income – it also affects your Medicare enrollment. Beginning to think about your Social Security situation is a great starting point for mapping out the rest of your journey to retirement.
How Will Retirement Affect Your Health Savings Account?
If you have a High Deductible Health Plan (HDHP) and therefore a Health Savings Account (HSA) through your employer, you definitely want to understand how retirement can impact this benefit. HSAs are a great way to save tax-free dollars for future medical expenses, but you want to make sure you understand all the rules in order to plan appropriately.
If you plan to retire on or before your 65th birthday, your HSA should not be impacted by your retirement plans. However, if you plan to work beyond age 65, you may need to delay Medicare Part A enrollment. This is because enrollment in Part A makes both you and your employer ineligible to contribute to your HSA. It’s important however to ensure you understand the proper way to delay your Medicare enrollment to ensure you don’t incur late enrollment penalties.
What Will Health Care Cost in Retirement?
For years, studies have indicated that health care will likely be your biggest expense in retirement. Based on this data, we highly recommend that you take time prior to retirement to learn about how the various retirement health care options work and what they cost.
Who Will Help You with Your Retirement Health Care Decisions?
In the same way that many people choose to work with financial advisors to plan their retirement investments, it makes sense to work with a health plan advisor to ensure you make informed health care decisions as you transition to retirement. This is especially true given the significant cost that health care can add up to in retirement.
At RetireMEDiQ, we are experts in the details of retiree health plans so that you do not have to be. Whether you are years away from retirement or are just around the corner, we want to be a resource to you to help you every step of the way.
We highly recommend that individuals who are just beginning to consider retirement sign up for our personalized email newsletter. Our newsletters are packed with important information that is customized to where you are in your retirement journey, ensuring that you cut through the clutter and have the most important information for your situation – right when you need it. You can sign up here today!