Retirement: What You Should Expect 

Retirement can be different to a lot of people. Some may eagerly wait for their time to finally relax and spend their retirement leisurely. Some may dread the fact that their impending retirement may not result into a time to relax and enjoy. It is important for people to know what to expect as they approach retirement age. Here are just some of them. 

Social Security Benefits Can Be Taxed 

While people may think that Social Security benefits may be tax-free, they will be surprised that many US states impose taxes on some or all of the said benefits. It is even possible that 85 percent of your Social Security benefit can be taxed. The said tax can be based on the amount of your provisional income, which is $34,000 for an individual and $44,000 for couples. Income over that amount can be subject to taxes during your retirement.   

US Seniors 65 and Up Can Enjoy A Larger Tax Break 

And while your Social Security benefits may not be immune to taxes, there are other better things to expect. Seniors can also enjoy a larger tax deduction by an additional $1,300 once they turn 65 years old. They do not have to be in retirement just to enjoy the larger tax break. This is something they can bear in mind when considering itemizing their taxes or taking the standard deduction.    

Most Seniors Fail To Take Travel Costs Into Consideration 

With retirement usually involving traveling for most people, they need to be aware of how the travel-related expenses. Unfortunately, many retirees fail to do so. A majority of those who retire did not plan or set aside a budget for travel. That is why they usually dig into their retirement funds a bit deeper just to acquire a travel budget. In order to avoid getting into such issues later, make sure to create separate budget for traveling during retirement. 

 

 

Posted by Ardent Editor on Sep 22 2019 in Retirement Life Tags:

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