Social Security and Retirement Planning Legal Center
As people grow older, they may start thinking about what will happen when their career ends and how they want to provide for their family. Ideally, you should keep these issues in mind throughout your working years so that you build a strong foundation for your retirement. Government benefits through the Social Security Administration can help retirees stabilize their finances when they stop earning a salary. However, you should not rely on government benefits but instead should develop an investment plan and craft strategies to maximize your assets.
One important reason to build financial security is to cover the costs of any health care and nursing care that you need. Whether you live independently or choose to move into an assisted living facility or a nursing home, you will want to make sure that you have access to resources that protect your wellbeing.
Social Security Benefits
Certain individuals can obtain retirement benefits or disability benefits through the Social Security Administration. Dependents and survivors of eligible individuals may be able to obtain benefits as well. You can claim retirement benefits as early as when you turn 62, although you will absorb a penalty if you claim them before your full retirement age. You will receive the standard amount of benefits if you claim them at your full retirement age, and you will receive an enhanced amount if you claim them after you reach your full retirement age. Meanwhile, getting disability benefits involves supplying medical documentation to show that your condition meets the criteria of a listing in the SSA Listing of Impairments or prevents you from working in any job. Read more here about the benefits offered by the Social Security Administration and how to apply for them.
Medicare and Medicaid
Medicare is available to people who are eligible for Social Security benefits. You can apply for this program once you turn 65. It provides three main types of coverage (Parts A, B, and D), which account for hospital insurance, medical insurance, and some prescription medications, respectively. Medicaid is a program funded by the federal government but operated by individual states. Eligibility is based on financial need rather than age. Recipients may receive a greater range of benefits than Medicare recipients, and sometimes they can use Medicaid to cover Medicare deductibles and copayments. Read more here about these two programs.
Retirement Planning
By carefully calculating your budget for retirement, you will be able to set goals and expectations. You may want to plan a lifestyle that allows you to live below your means, which can help you put aside some of your income as retirement savings. Meanwhile, contributing part of your income to retirement plans can be a critical step to take. You may gain access to a plan through your employer, such as a 401(k) plan, or you may start a plan individually, such as an IRA. (People who are self-employed have distinctive plan options to consider.) If you make smart investment decisions and do not exhaust your retirement accounts, you can continue to lead a comfortable life once you stop working. Read more here about retirement planning strategies.
Family Members and Retirement Accounts
Sometimes significant funds remain in a retirement account when a person dies. If the holder of the account properly designates a beneficiary, the funds can pass directly to a family member without going through the onerous process of probate. This requires designating a beneficiary in the account paperwork, rather than a will. An account holder should keep thorough records of all of their accounts and ensure that their loved ones and the executor of their estate can find this information easily. They also should make sure that any person whom they have entrusted with a financial power of attorney has access to these records in case they need to manage the accounts while the account holder is incapacitated. Read more here about family members and their rights to the contents of retirement accounts.
