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There are many reasons why people might choose to delay their retirement, for example-a better financial situation, the need to be around for children through their teenage years, the desire to travel the world before it’s all gone, or simply because they want to keep doing what they love. The decision is up to you!

Nowadays, people are working well into their golden years. It used to be that you would retire at 65, but roughly half of Americans don’t expect to even retire until age 70 or older. If this sounds like you, you might want to follow in the footsteps of others around the world who have decided to take their retirement in their stride and keep working as they grow older.

There are many reasons for people to choose to delay their retirement, for example-a better financial situation, the need to be around for children through their teenage years , or simply because they want to keep doing what they love. The decision is up to you!

Health insurance is an important part of maintaining good health. It also protects you from the cost of medical care when injured or sick. Millions of people rely on health insurance to fill in the gaps between what their employer offers and what they can afford out of pocket.

Well-being insurance is usually arranged through your employer, but it is possible to purchase your own insurance on the open market. The company that you work for may be able to recommend a good plan that is right for you.

The first step is to analyze your personal situation. For most people, the best time to start receiving benefits will be shortly after their full retirement age (FRA). But sometimes it may make sense to delay that even longer or never retire at all! So let's look into how that decision could affect you.

But first, let's look into just how Social Security benefits are calculated. You receive 100 percent of the benefit your spouse would have received if they were still alive when you start collecting, but just 70 percent if they pass away before you do. These percentages will increase by about 8 percent for every year past their FRA that you wait to start your benefit.

This is the time in an individual's life when s/he should begin thinking about retirement and what sort of benefits he or she will receive while retired. There are many personal considerations that go into this decision, including current income levels, current debt load, spouse's situation, expected future earning power at age 62 vs. age 70+, expected marital status at 70 vs. 90, etc.

After analyzing your personal situation, you will be able to decide the best time for you to begin receiving Social Security benefits. It might make sense to never retire or wait past your FRA in some cases.

You can begin taking distributions at age 70 1/2, or you can wait until you retire. If you take money out before the age of 59 1/2, however, you'll have to pay penalties up to 50% of the withdrawal amount. The first decision is one that cannot be undone- so it's important to know what's best for your retirement account and personal goals before making the final call!

The first thing you should do is estimate how many years your retirement savings can sustain you and then find out what ratio of income to expenses works best for people in your age bracket. Many young retirees, for example, may spend 80% of their pre-retirement incomes right up until they run out of money.

Then, put together a budget that contains every penny you spend over the next few years so that you can track what your expenses are. For example, you may have to pay for utilities, phone service, lawn care servicing and accounting services. Once you have developed your budget, stick to it because there is nothing worse than blowing all of your retirement savings in the first few years and then having to go back into work.

When you reach retirement age, it's natural to wonder if you can afford to retire. There are a lot of factors that go into answering this question, and no one knows for sure what the future holds. But there are some things we know about your current financial situation which will help answer the question: What is my net worth?

We all have assets and liabilities -- what we own minus what we owe. Your home, car, furniture and other possessions represent your assets while credit card debt or student loans represent your liabilities. Collectively these items make up your net worth. Now let’s see how these two compare!

Your assets should be greater than your liabilities by at least 25%. This means that if you have $100,000 in assets, your liabilities should be $75,000 or less. If you have more than $100,000 in debt, then your net worth is negative and you may not be able to retire unless you reduce expenses elsewhere.  

It depends upon which kind of annuity you've. In the event you select a fixed-rate annuity, you're not accountable for selecting the investments – the insurance coverage business handles that job and agrees to spend you a pre-determined fixed return.

Whenever you go for a variable annuity, you determine how you can invest your cash within the sub-accounts (basically mutual funds) provided inside the annuity. The worth of one's account depends upon the overall performance from the funds you select. Whilst a variable annuity has the advantage of tax-deferred development, its annual costs are most likely to become a lot greater than the costs on normal mutual funds – so ordinary funds might be a much better choice.

Whenever you invest inside your annuity you also select how you would like your eventual payouts to become calculated. Your choices consist of:

Earnings for assured period (also known as period particular annuity). You're assured a particular payment quantity to get a set time period (say, 5 years or 30 years). In the event you die prior to the finish from the period your beneficiary will obtain the remainder from the payments for the assured period.

Lifetime payments. A assured earnings payout throughout your lifetime only; there isn't any survivor advantage. The payouts may be fixed or variable. The quantity of the payout is determined by just how much you invest as well as your life expectancy. In the time of death all payments quit – your heirs do not get something.

Earnings for life having a assured period particular advantage (also known as life with period particular). A mixture of a life annuity along with a period particular annuity. You obtain a assured payout for life that consists of a period particular phase. In the event you die throughout the period particular phase from the account, your beneficiary will continue to obtain the payment for the remainder from the period. For instance, life having a ten year period particular is really a typical arrangement. In the event you die 5 years following you start collecting, the payments continue for your survivor for 5 much more years.

Joint and survivor annuity. Your beneficiary will continue to obtain payouts for the rest of their life following you die. A well-liked choice for married couples.

Usually you need to think about an annuity only following you've maxed out other tax-advantaged retirement investment automobiles, like 401(k) plans and IRAs. When you have extra cash to set aside for retirement, an annuity's tax-free development might make sense – particularly if you're inside a high-income tax bracket these days.

Annuities have some substantial drawbacks. For 1, you have to be prepared to sock away the cash for many years. In the event you make a withdrawal inside the initial 5 to seven years and also you usually will probably be hit with surrender charges of as much as 7% of one's investment or much more. Annuities often charge other higher charges also, generally such as an initial commission that may be as much as 10% of one's investment. In the event you buy a variable annuity, ongoing investment management as well as other charges frequently quantity to 2% to 3% a year.

These charge structures may be complicated and unclear. Insurance coverage agents and other people who sell them might tout the good attributes and downplay the drawbacks, so make certain that you simply ask a great deal of concerns and cautiously evaluation the annuity strategy initial.

Prior to you invest, you need to evaluate that charge structure with normal no-load mutual funds, which levy no sales commission or surrender charge and impose typical annual costs of much less than 0.5% (for index funds) or about 1.5% (actively managed funds), and figure out whether or not you may be much better off going that route by yourself.

It is also essential to know that earnings you withdraw from an annuity will probably be taxed as ordinary earnings, regardless of how lengthy you've owned the account. The maximum earnings tax price these days is 35%, but if you have got a whilst prior to you retire, you are able to be particular tax prices will not improve.

Withdrawing cash from an annuity may be a pricey move, so make certain you evaluation your plan's guidelines and federal law prior to you do.

In the event you make withdrawals prior to you attain age 59 ? , you'll be needed to spend Uncle Sam a 10% early withdrawal penalty also as normal earnings tax in your investment earnings. (The quantity you contributed towards the annuity won't be not taxed.)

In case your withdrawals come inside the initial 5 to seven years that you simply personal the annuity, you most likely will owe the insurance coverage business a surrender charge. The surrender charge is usually 7% or so of one's withdrawal quantity in the event you leave following just 1 year, and also the charge then usually declines by 1 percentage point a year till it gets to zero following year seven or eight.

Beware: Some annuities have initial surrender charges that may be as higher as 20%. But verify your plan's guidelines, simply because some annuities permit you to withdraw as much as 10% of one's investment without needing to spend the surrender charge.

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