Key Points The IRS typically imposes a 10% early withdrawal penalty on 401(k) distributions taken prior to age 59 and 1/2. If you separate from your employer the year you turn 55 or later, you may be able to access your savings penalty-free. The rule applies only to certain accounts under specific conditions, so it’s […]
Key Points A recent estimate by the Senior Citizens League calls for a 3.8% COLA in 2027. That could give the typical Social Security check a decent boost. It’s important not to get hung up on any given number at this stage of the game. The $23,760 Social Security bonus most retirees completely overlook › […]
Key Points Save consistently. Choose the right investments. Keep your spending in check. The $23,760 Social Security bonus most retirees completely overlook › Many people end up working until their 60s or beyond because they have no choice. But you may find that retiring at 55 is more ideal for you because it gives you […]
Key Points Medicare premiums can be a huge strain on retirees’ budgets. Knowing when to enroll could lead to lower costs. Managing your plan choices annually is also key. The $23,760 Social Security bonus most retirees completely overlook › Many people know to anticipate expensive healthcare costs in retirement. But you may be surprised by […]
Key Points Social Security’s 2027 COLA recently got a downgrade. The estimates are still higher than this year’s COLA. A smaller raise means less rampant inflation this summer, so it’s not a total loss. The $23,760 Social Security bonus most retirees completely overlook › There are many retirees who get most of their income from […]
Key Points Maxing out a traditional IRA can reduce your taxable income by $7,500 this year. I choose not to do this because I contribute to a Roth IRA instead. I have to pay taxes on my contributions up front, but I’ll get tax-free withdrawals in retirement. The $23,760 Social Security bonus most retirees completely […]
Key Points There’s no rule against claiming Social Security early while you’re still working. However, doing this could put you at risk of losing money to the earnings test. You may be better off waiting until you retire or reach your FRA to apply for benefits. The $23,760 Social Security bonus most retirees completely overlook […]
Key Points You may not be able to max out a 401(k) or contribute as much as you’d like. At the very least, aim to contribute enough to claim your workplace match. If you don’t, you’ll be giving up free money and so much more. The $23,760 Social Security bonus most retirees completely overlook › […]
Key Points Social Security benefits are expected to get around a 3.8% boost next year. This may cause some seniors to face Social Security benefit taxes for the first time. It could also increase your tax bill by more than the COLA amount. The $23,760 Social Security bonus most retirees completely overlook › Social Security […]
Key Points Exceeding your 401(k)’s annual contribution limit can trigger tax penalties. Those earning more than $150,000 must make Roth catch-up contributions starting this year. Those with lower incomes may continue making tax-deferred catch-up contributions if they wish. The $23,760 Social Security bonus most retirees completely overlook › A high 401(k) contribution rate is great, […]
Key Points An early market crash could put your savings at risk. With the right plan, you can get through a downturn early on in retirement. A flexible approach coupled with a cash cushion could go a long way. The $23,760 Social Security bonus most retirees completely overlook › If there’s one scenario that has […]
Key Points Your 2027 Social Security COLA may not boost your checks as much as you were hoping for. You may need to rely upon personal savings or a job to supplement your checks. You could also check whether you qualify for other government benefits to help with essential expenses. The $23,760 Social Security bonus […]
Key Points Current estimates suggest Social Security’s 2027 cost-of-living adjustment (COLA) could be more generous than this year’s 2.8% raise. If inflation slows down during the summer, next year’s COLA could be smaller. That’s not necessarily a bad thing for retirees. The $23,760 Social Security bonus most retirees completely overlook › If you’re collecting Social […]
Key Points Some in Congress are pushing to drop the retirement earnings test. Proponents say it will give seniors greater financial flexibility. Others worry that it will add to the current Social Security trust fund woes. The $23,760 Social Security bonus most retirees completely overlook › A proposed bill in Congress would scrap the “retirement […]
Key Points Not having a mortgage doesn’t make housing inexpensive. Getting rid of a huge property tax bill and lowering utility costs could help stretch my savings. There’s only so much maintenance I want to do when I don’t need the space. The $23,760 Social Security bonus most retirees completely overlook › Many people say […]
Key Points The Promise Act doesn’t lay out specific Social Security changes, but it sets the stage for a disciplined approach to shoring up the program’s trust fund. The Promise Act also calls for automatic reviews every 10 years. Under the proposal, if the Social Security Board of Trustees reports that the program is no […]
Key Points The Senior Citizens League prediction of a 3.9% COLA for 2027 is based on the recent inflation rate. It’s safe to assume that a portion of that raise will go toward paying higher prices for everyday items. Once the money is in your account, there are several ways you can make it stretch […]
Key Points Right now, you only pay Social Security payroll taxes on the first $184,500 you earn in 2026. One proposal would force wealthy Americans to pay payroll taxes on all of their income each year. This would help with Social Security’s funding crisis, but it wouldn’t fully eliminate the shortfall. The $23,760 Social Security […]
