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Post Retirement

Post-retirement benefits may include current savings and investments, government programs, and public sector programs. If a pension is provided by an employer, these benefits are distributions and awarded to retirees for their service to the company. Certain programs will also include the employee's immediate family.  However, direct pension plans are becoming scarce and the more typical method of employer contributions to their employees is via 401k type of employer sponsored retirement plans. Typically employees can begin to take advantage of these benefits as soon as they commence retirement.

If you are interested in finding out more about post retirement options, contact a local retirement planner in your area today.

Social security is a benefit allocated by the government. Funding for the benefit is derived from payroll taxes. Collecting social security benefits can begin as early as age 62 with a reduced benefit amount.  If a person decides to continue working beyond 62, they can postpone the benefit until they are ready for retirement. Full retirement benefits can be realized at age 65.
A local professional can help with the following topics that may come up when considering post retirement options:

  • Retirement Planning
  • Government Benefits
  • Pension Plans
  • Inflation
  • Reverse Mortgage
  • Taxes
Various state government entities and private corporations may provide 100% funding into retiree pension plans. In the private sector, these plans have diminished in popularity. Employees are encouraged to join 401k retirement savings plans. Many employers match a certain percentage of the employee's contribution as well. These types of employer sponsored plans provide deferred income for the employee's retirement.

Cost of living increases can affect a retiree’s quality of life if the money they have saved is not sufficient to cover their current expenses and cost of living increases.  Also, keeping up with inflation can sometimes be a challenge for retirees.  According to the CPI, Consumer Price Index, inflation in the past decade has been around 5%.  Therefore, it is important to continue exploring all investment options to continue maximizing the return on your savings and help combat against cost of living increases and inflation.

According to the IRS, there are several tax rules that apply once you reach retirement.  For example, when you retire or reach the age of 65, Social Security taxes will no longer be withheld, FICA taxes will be owed if you get a pension or investment income, and you may be eligible for a higher standard deduction. Additionally, income taxes may be owed on mandatory withdrawals from your IRA or retirement plan when you reach 70 1/2 years.

Do you have questions or concerns regarding post retirement? Contact a qualified local professional today for assistance with your retirement options.