Insuring Your Future: Thinking Of Retiring?

It can be as difficult to decide whether to stop working when you reach “retirement age” as it was to get that first “real” job. The good news is that there are many options available and it is to your advantage to do some research before making that big decision. You will find it is a good investment of your time.

Here are some things to consider:

Retirement can mean a variety of things these day: Scenario one: You are no longer working, but not yet collecting social security, Scenario two: You are still working full or part time, but collecting Social Security or Scenario three: You are not working but collecting social security either as a result of a disability if you are under 65, or your regular benefit if over 62.

Everyone’s situation is different, and Social Security has created several “retirement planners” to help you decide which retirement route is best for you and your family. There is an online calculator that can provide benefit estimates to help you plan for your retirement. On this site you can create a variety of scenarios to include “stop working” on a specific date, or “work part time”, so you can estimate future earnings and how to maximize your social security “bank”. To use the Estimator, go to www.socialsecurity.gov/estimator. As with any long term financial decision, it is wise to seek the advice of a financial professional who can assess your entire financial picture and make recommendations on the best course to follow.

The easiest way to apply for Social Security retirement benefits is to go online at www.socialsecurity.gov/applyforbenefits . You can also apply at any Social Security office, the closest are in New Haven and Ansonia.

You also have options with health insurance: if you are 65 you can enroll in Medicare and even if still working, sometimes reduce your out of pocket costs. If you are under 65, and no longer working you can choose COBRA through your employer’s group health plan or an individual plan that is less expensive.

Even if you don’t plan to receive Social Security benefits, you will be automatically be enrolled in Medicare A & B when you turn 65. Approximately 2 months prior to your 65th birthday, you will receive a letter from Social Security indicating the effective date of your Medicare coverage. If you plan to continue with your employer’s benefit plan, you should waive the Medicare Part B coverage. Once you are no longer on your employer’s group plan, you will need to notify Social Security that you wish to activate your Medicare Part B coverage. Failure to enroll in Medicare Part B within 60 days of eligibility or loss of group coverage could result in a permanent penalty.

When you enroll in Medicare A & B, you will also need to choose a prescription drug plan and most also purchase a plan that will assist with the portion of medical expenses that Medicare A & B do not cover. At this point, it is wise to consult with an insurance agent who is certified in senior health insurance products who can help you choose the best plan.

Once you have done all of the above, you can start planning that BIG trip!

Trish Pearson is a licensed independent insurance agent and certified long term care specialist. Contact her at 203-640-5969 or trishpearson281@gmail.com.