![]() Dogan says, “People don't realize that you actually have to pay for a lot of aspects of Medicare, never mind the out-of-pocket costs beyond that.”Īvoid budget-busting expenses with proper financial planning. ![]() The details of health care, what's covered, and who pays for it can be confusing. These costs can take up a hefty part of a senior's income, even for those who felt confident that they had enough in savings. The National Institute on Aging (NIA) reports that many older adults and caregivers worry about medical care expenses. Planning for Insurance and Medical Expenses In addition to the standard retirement contributions, the IRS allows annual catch-up contributions to certain retirement plans 3. If you're aged 50 years or over, there's an opportunity to get back on track. Life happens, and sometimes retirement goals get put on hold. Next, seniors should max out any tax-advantaged accounts, including 401(k)s, IRAs, or HSAs. To make the most of these accounts and your retirement savings, Dogan recommends that older adults first take advantage of company matches from their employers. They also play a starring role in ensuring you can retire comfortably. Your retirement accounts make up a portion of your assets. Your net worth is calculated by subtracting any liabilities, such as debt, from your assets. Just follow our step-by-step guide on how to initiate your Social Security direct deposit.Īccording to the Federal Reserve Board's latest Survey of Consumer Finances, the median net worth of Americans aged 55 to 64 is $212,500. Setting up your funds to be sent directly to your bank account is simple. Direct deposit is also safer, as there's no risk of your check getting lost or stolen. Instead of anxiously waiting for your check to arrive in the mail, an electronic funds transfer is faster and more convenient. If you're already receiving Social Security, why not skip the trip to the bank? Now is a great time to arrange to have your Social Security checks deposited into your bank account through direct deposit. Keep Your Social Security Safe With Direct Deposit ![]() Social Security Disability Insurance (SSDI) benefits.Divorced spouse Social Security benefits.There are several different Social Security benefits, and it's essential to understand which ones you and your family may be eligible to receive. “There are some special considerations for married couples, widows or widowers, and former spouses that can have a significant impact on Social Security benefits.” Neal Stern, CPA, who is also a member of the American Institute of CPAs' National CPA Financial Literacy Commission, touched on the often overlooked aspects of Social Security. Know Your Social Security Benefit Options Want to know where your monthly payment will land? Our in-depth guide to estimating your Social Security benefit has you covered. Plus, signing up early prevents scammers from creating an account using your Social Security number.ĭid You Know? In 2022, the estimated average Social Security payment for all retired workers is $1,657 per month 2. Even if you’re not eligible for benefits yet (anyone over the age of 18 can set up an account), creating a my Social Security account gives you access to personalized estimates, benefit calculators, and customer support. The Social Security Administration's free my Social Security account is an easy, safe, and secure way to view and manage your benefits. There are several ways to understand how Social Security will fit into your overall financial goals and estimate your benefits. Will Social Security cover all of your financial retirement needs? “One of the biggest sticker shocks around Social Security is that it's likely not enough for you to pay your bills once you retire.” Understanding “…how Social Security fits into your financial health is a powerful way to be prepared,” said Andrew Meadows, senior vice president of human resources, brand, and culture at Ubiquity Retirement + Savings. If you're in the planning phase or already receiving Social Security, you're in good company! Approximately 65 million Americans receive Social Security payments annually.
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