4 Financial Areas You’ll Want to Check Out in Your Mid-60s
In the past, many would retire in their mid-60s and receive a pension for the rest of their lives. While it is not as common to see this anymore, your mid-60s are still an important age when it comes to your finances. Your kids have likely grown and left the nest, and making sure you are ready for retirement can keep you from being a burden on your kids when you are older. There are a few things to understand about this stage of life and how it relates to the following financial areas.
Consider Any Life Insurance Policies You Have
Life insurance is especially helpful for families with kids at home or at college, but once your kids have hit their late 20s or early 30s, that coverage is not as important anymore. Evaluate the coverage you currently have, to see if it would be worth selling your policy. It’s easy to find out how much it’s worth and sell it online. You can find out what it is worth here to help with your decision.
You Can Get Medicare
When you hit 65, you can sign up for Medicare, which tends to be more affordable than many types of health care insurance options. Still, if you don’t have Social Security yet, it can be challenging to sing up. You may need to manually sign up for Medicare if you are not yet enrolled in Social Security benefits.
That’s because you won’t be enrolled automatically. If you are still working and will be able to keep your insurance with your current health care provider, you likely won’t need to worry about this step. But if you plan on retiring soon, you will likely want to sign up for Medicare as soon as you can, especially since you will typically have a three-month window of time to do so.
You Can Take Advantage of Your HSA Account
Health savings accounts can be beneficial to your tax situation. You can often deduct contributions from your taxes, or you can contribute pre-tax dollars. The money in the account also grows on a tax-deferred basis, and the funds can be used for eligible expenses any time you need them. When you hit your mid-60s, the money can be used for even more expenses on a tax-free basis. Of course, enrolling in Medicare means you won’t be able to contribute to your HSA anymore, but if you haven’t left your job yet, you may be able to delay signing up for Medicare so you can continue contributing.
It is Still Possible to Save for Retirement
If you are still working right now, you can keep saving for your retirement, even if retirement is right around the corner. Don’t rule out retirement savings from freelance or part-time work either. If you have income from your work, you can keep contributing to your IRA or Roth account. Check the IRS’s limits for the year to see how much you can put in your accounts. Even saving at this time in your life can make a difference later in life, especially since you can still benefit from compound interest.