Death and Taxes
The saying goes only two things in life are certain and they are death and taxes. The uncertainties that surround these two events are the subject of this blog namely how do you predict your life expectancy and the money needed to live in health and safety till the very end.
Did you know that women who reach age sixty-five are most likely to live another twenty years? Also, women tend to live five years beyond their spouse. Knowing that more women will be living alone and must be self-reliant since they are less likely to have a caregiver living at home or close by. These facts make retirement planning for women even more important today than ever before.
Meeting these retirement planning benchmarks will make the golden years even brighter. The 50s is the right time to review Social Security statements and accelerate savings with an eye toward the road ahead. 401K savings plan is the most popular way to save for retirement. Starting at age 59 ½ begins the withdraw period from 401K without tax penalties.
The sixties are a decade of tremendous life changes. Age 62 is the first age that Social Security benefits are available. Many caregivers are forced to quit outside employment in their sixties and then rely on Social Security as their sole source of income. However, delaying the start of Social Security payments means higher benefits up to the age of 70. The last benchmark is 70 ½ when pension and other retirement withdraws must begin otherwise a tax penalty is assessed.
Retirement is a balancing act of predictions on death and taxes. Reduce these variations by saving and withdrawing at the right times. Remember, living longer means higher lifetime healthcare and caregiving costs. Plan and save for the road ahead. Here is a great tool to help with your planning, click here to download.