Retirement planning at any age can be challenging but you can take certain steps when you're in your mid-60s and beyond. Reaching age 65 doesn't always mean that it's time to retire even if you're financially secure. Many people in their sixties love their jobs and want to continue working but there are a few things to consider and take care of as part of your retirement 澳洲幸运5官方开奖结果体彩网:planning if you're in your mid-60s.

The common age for retirement was 65 at one time but times have changed. Even the 澳洲幸运5官方开奖结果体彩网:S💮ocial Security꧂ Administration (SSA) has increased the age when full retirement benefits become available. There's also been a shift from 澳洲幸运5官方开奖结果体彩网:defined-benefit plans to 澳洲幸运5官方开奖结果体彩网:defined-contribution plans in many company-sponsored plans.

Adding to these changes is the fact that many savings programs aren't producing projected returns. It's easy to see why many individuals may have to postpone retirement.

Determine Your Retirement Readiness

Think about whether you're really ready to quit from a psychological and financial perspective if your employer's policy is to offer retirement at age 65. Consider whether you want to ask your employer to allow you to work a few more years, or if you'd like to be hired as a consultant.

You'll ideally do this at least a 澳洲幸运5官方开奖结果体彩网:year before you reach age 65 because some employers start the retirement process early. They focus on hiring and retaining employees who are experienced and "know the business" 🌼;to strengthen their intellectual banks.

Staying on as a salaried employee not only means you'll continue to receive a steady income but you'll also continue to receive 澳洲幸运5官方开奖结果体彩网:health coverage and any other benefits your employer offers. Going the consultant route offers you more fle🌱xibility and could allow you to have more of a working retirement.

Create a Retirement Budget

Retirees who have saved up for many years can feel that reaching retirement age means it's 澳洲幸运5官方开奖结果体彩网:ti𝐆me to enjoy the fruits of th🔯eir labor. The r🧸isk is that people can go overboard and spend it all in a few years.

Budget your expenses to avoid falling into thꦛis trap. Be sure to include any new costs you plan to incur, such as extra travel. This will help you make a realistic determination of how easily you can afford some of those plans.

According to William DeShurko, chief investment officer at Fund Trader Pro, "An easy way to do a budget is to take out your most recent pay stubs. Look at the net pay amount after all deductions have been made. Convert that to a monthly number. Add or subtract amounts that will be different in retirement. Usually, this number doesn't change much. If anything, it goes up to account for more travel. If you have to budget down to every expenditure, don't retire. You can't be cutting it close with a 30- or 40-year period of spending ahead of you."

Decide When to Take Social Security

Social Security is usually included in an individual⛄'s financial projections for retirement. One key decision when factoring Social Security into your equation is to determine whether you will🐲 receive full or reduced benefits.

You're eligible to receive full retirement benefits from the SSA at age 66 if you were born between 1943 and 1954. Your full retirement age is determined by how long after 1954 you were born if you were born in 1955 or later.

Source: Social Security Administration

Your annual benefits will be less if you take Social Security benefits before you reach your 澳洲幸运5官方开奖结果体彩网:full retirement age. Consider waiting until age 70 to garner the maximum possible benefit if you don't need the payments when you reach full retirement age. Waiting any longer than age 70 won't increase the amount you'll receive.

"Factors that drive when it is best to take Social Security include the historical income of you and your spouse, your ages, and 澳洲幸运5官方开奖结果体彩网:life expectancy," says , founder and president of Index Fund Advisors and author of Index Funds: The 12-Step Recovery Program for Active Investors.

"Most adults who are healthy would benefit from suspending their Social Security until they reach age 70," Hebner adds. "There are online resources for investors to help them maximize their potential Social Security payout.”

Sign up for Medicare

Medicare can be used to cover certain medical-related expenses so you don't have to use your savings to cover these amounts. Medicare provides hospital insurance for in-patient care and certain follow-up care and medical insurance coverage for physician services that aren'tꦡ covered under the hospital i🐭nsurance.

Medicare is available to individuals who are at least age 65. The age can be younger for individuals who are disabled or have permanent kidney failure. The medical portion of the insurance is available at a premium and is optional.

You may not need the medical portion if you're covered by a health plan at work. You can compare the costs and features of both and choose the one that's most suitable for you. The hospital insurance is available at no additional cost to you because you already paid for it as part of your 澳洲幸运5官方开奖结果体彩网:Social Security taxes while you were working.

Use Your Home for Income

It may be time to consider whether you should move to a smaller home that's less costly to maintain or to an area where the cost of living is lower. Changing residences could provide some extra money to add to your retirement nest egg.

Consider whether the risks involved in a reverse mortgage are suitable for you if you're not willing to move or sell your home but you need additional income. A lender uses the equity in you♊r home to provide you with tax-free income under a reverse mortgage program.

Be sure to ask as many questions as possible before applying for a reverse mortgage, including how much you'll have to pay in fees, the terms of the mortgage, and your receipt-of-payment options.

Manage Your Income During Retirement

Take steps to ensure that you minimize taxes and maximize what you get to keep if you must take income from your savings to finance your retirement. 澳洲幸运5官方开奖结果体彩网:Your unique financial profile will determine the mos🍰t opportune time to use certain types of income.

Withdrawals from tax-deferred accounts such 澳洲幸运5官方开奖结果体彩网:traditional IRAs and employer-sponsored plans should generally occur during the years when youꦰr tax rate is lower. This will help to minimize the amount of income tax you owe on those amounts.

Take Required Minimum Distributions

You must satisfy your RMD amounts from those accounts if you're of the 澳洲幸运5官方开奖结果体彩网:required min𝄹imum distribution (RMD) age, regardless of your tax rate.

The RMD age was 70½ for years then the 澳洲幸运5官方开奖结果体彩网:SECURE Act became law in Dec. 2019 and bumped it up to reflect increased life expectancies. You have until age 73 if you were born between 1951 and 1959 or until age 75 if you were born in 1960 or later to start taking RMDs from your traditional IRAs and 401(k) plans. You'll owe a penalty of as much as 25% penalty on the amount you should have withdrawn if you miss an RMD.

Keep in mind that Roth IRAs don't have RMDs. You can keep your money in a Roth as long as you like and 澳洲幸运5官方开奖结果体彩网:pass the entire account to your beneficiaries.

The Bottom Line

You'll likely read lots of advice about 澳洲幸运5官方开奖结果体彩网:timing your retirement and ways to manage your income but there's no one-size-fits-all solution. Working with a 澳洲幸运5官方开奖结果体彩网:financial planner or retirement counselor can 澳洲幸运5官方开奖结果体彩网:help you design a solution tailored to your needs and income. Start planning for retirement as early as possible and don't forget to 澳𝐆洲幸运5官方开奖结果体彩网:rebalance your investment portfolio as often as necessary.