Your 2019 Retirement Planning Guide
Retirement Tips for All Stages of Retirement
Staying on top of your retirement should be a cake walk. Easier said than done.
We all know that when it comes making financial decisions, it’s always advisable to stay in the know as much as possible. That’s why we’ve put together our 2019 retirement planning guide to potentially help you increase your awareness of some retirement facts that may affect you and provide you with some retirement resources you can use to better your financial outlook for 2019.
Did you know?
Up to 85% of a retiree’s Social Security income can be taxed.
Surprised? You’re not alone. Many retirees are not aware of this. In addition to the Internal Revenue Service, 13 states levy taxes on some or all Social Security retirement benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia.
Do you want to avoid this? Take a proactive stance on your taxes when you get free tax advice from the I.R.S.
The I.R.S. offers free tax advice to people 60 and older through its Tax Counseling for the Elderly program. We were pleased with this find and helpful resource to include in our retirement planning guide.
Want to keep saving into your retirement? Here’s a retirement tip: You can continue to save with an IRA.
There is no age limit for contributing to a Roth IRA, just an inflation-adjusted income limit. So, a retiree can keep directing money into a Roth IRA for life, provided they are not earning too much. In fact, a senior can potentially contribute to a traditional IRA until the year they turn 70½.1
Retirees standard tax deduction on federal taxes is a bit larger than others.
Actually, this is true for all taxpayers aged 65 and older, whether they are retired or not. Right now, the standard deduction for an individual taxpayer in this age bracket is $13,600, compared to $12,000 for those 64 or younger.2
Retirees credit dependency wanes as their retirement evolves.
GoBankingRates says that only slightly more than a quarter of Americans over age 75 have any credit card debt, compared to 42% of those aged 65-74.1 Retirement tips like these are a pleasure to include in our 2019 retirement planning guide.
Around one in three seniors who live independently also live alone.
In fact, the Institute on Aging notes that nearly half of women older than age 75 are on their own. Compared to male seniors, female seniors are nearly twice as likely to live without a spouse, partner, family member, or roommate.1
About 64% of females do not have a backup plan to rely on if they are forced into an early retirement.
That is, they would have to completely readjust and reassess their vision of retirement, and redetermine their sources of retirement income. The Transamerica Center for Retirement Studies learned this from its latest survey of more than 6,300 U.S. workers.3
A significant percentage of retirees are carrying education and mortgage debt.
The Consumer Finance Protection Bureau says that throughout the U.S., the population of borrowers aged 60 and older who have outstanding student loans grew by at least 20% in every state between 2012 and 2017. In more than half of the 50 states, the increase was 45% or greater. Generations ago, seniors who lived in a home often owned it, free and clear; in this decade, that has not always been so. The Federal Reserve’s recent Survey of Consumer Finance found that more than a third of those aged 65-74 have outstanding home loans; nearly a quarter of Americans who are 75 and older are in the same situation.1
Few older Americans budget for travel expenses.
While compiling facts for our retirement planning guide, we learned that while retirees certainly love to travel, Merrill Lynch found that roughly two-thirds of people aged 50 and older admitted that they had never earmarked funds for their trips, and only 10% said they had planned their vacations extensively.1
What financial facts might you want to reconsider after reading our 2019 retirement planning guide?
What monetary realities might you need to acknowledge as your retirement progresses from one phase to the next? The reality of retirement may surprise you. If you have not met with a financial professional about your retirement savings and income needs, you may wish to do so. When it comes to retirement, the more information you have, the better.
You can call us at 772-807-4628 now to set up that complimentary consultation or use the online appointment Scheduler to reserve a time that is convenient to meet.
1 – gobankingrates.com/retirement/planning/weird-things-about-retiring/
2 – fool.com/taxes/2018/04/15/2018-standard-deduction-how-much-it-is-and-why-you.aspx
3 – thestreet.com/retirement/18-facts-about-womens-retirement-14558073