Turning 65 may seem scary at first, you are finally retirement age, but the big question still looms overhead; do I have enough money to actually retire? There are more financial benefits out there than you may realize. Some are small financial perks that will save you a dollar here or there, which all add up when you’re on a fixed income, and there are much larger benefits to take advantage of as well. Here are just a few of the financial benefits out there for you to start using once you turn 65.
Senior Discounts
Senior discounts are normally small percentages off the total price of pretty much wherever you are spending money. This can be anywhere from the movie theater, the hair salon, the mall, or grocery store. Usually the percentage of a senior discount is about 10% off the total of your bill. This may seem small, but once you retire and are on a fixed income, every penny counts. Grocery store and some larger department stores often have a “senior day” were they offer special discounts for seniors on certain days of the week. Most of the time you have to ask for the discount and they may require proof of age by your id but it is well worth it.
Senior Services
Most communities have programs or centers dedicated to seniors. In these senior centers they offer low to no cost meals, activities, classes, and entertainment. These programs also offer discounted memberships to varies places and public transportation discounts. The senior center is a great place to socialize and transition from the workforce into retirement
Tax Deductions
Depending on your states tax laws, seniors are often eligible for several extra tax deductions. If you meet specific age and income requirements, you may also qualify for property tax exemptions as well. Talk to your accountant or tax planner to see what exemptions you might qualify for.
Social Security
Your social security benefit amount can change depending on what age you start claiming it. You can start getting social security payments as early as 62 but you will get a lesser percentage than if you wait until you are 66. If you wait to claim social security until you are 70 you will earn what’s called, “delayed retirement credits” which will boost up the monthly benefit amount.
No Withdrawal Penalties
If you have an IRA, once you turn 59 and a half, you are able to take the money from your account without accruing a 10% penalty. As for your 401k account, if you retire at age 55 or older, you can start withdrawing money penalty free. If you withdraw money put into your 401k while at a different place of employment from where you retired from, you’ll have to wait until you are 59 and a half to avoid the 10% penalty unless you have an early withdrawal exemption.
It can be overwhelming to think of retirement and how it will affect you financially. But there are so many resources and programs that cater to and help seniors make the most of their financial resources and able to better enjoy their retirement.