[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/if-you-plan-to-retire-this-year-be-prepared-white-plains-ny-new-york-ny\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/if-you-plan-to-retire-this-year-be-prepared-white-plains-ny-new-york-ny\/","headline":"If You Plan to Retire This Year, Be Prepared","name":"If You Plan to Retire This Year, Be Prepared","description":"\u201cMany people are looking forward to 2020, simply because it’s the start of a new decade. However, if you plan to retire in 2020, then you clearly have your own set of reasons to get excited for the year ahead.\u201d If you\u2019re sure that you are going to leave the working world and start your […]","datePublished":"2020-02-24","dateModified":"2023-07-29","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a4e66d61.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a4e66d61.jpg","height":250,"width":366},"url":"https:\/\/www.amorusolaw.com\/blog\/if-you-plan-to-retire-this-year-be-prepared-white-plains-ny-new-york-ny\/","about":["COBRA","Health Insurance","Social Security"],"wordCount":621,"keywords":["COBRA","Full Retirement Age","Health Insurance","Medicare","Social Security"],"articleBody":"\u201cMany people are looking forward to 2020, simply because it’s the start of a new decade. However, if you plan to retire in 2020, then you clearly have your own set of reasons to get excited for the year ahead.\u201dIf you\u2019re sure that you are going to leave the working world and start your retirement life in 2020, better not put in your notice at work until you\u2019ve done your homework. The Motley Fool article “Retiring in 2020? 3 Things You Need to Know” covers three important steps.If you were born in 1958, then this is the year you celebrate your 62nd birthday\u2014which means you are eligible to collect Social Security. However, if you do, your benefits will be reduced as you have not yet reached your \u201cFull Retirement Age\u201d or FRA. People born in 1958 need to be 66 and eight months to reach that important milestone. At that point, you can collect your full benefit. Collect earlier, and your monthly benefit is reduced for the rest of your life.Born in 1954 or earlier? Full retirement age for you is 66, if you were born between 1943 and 1954. If you were born at the tail end of this range, then you can collect your full Social Security benefit this year. However, it still may pay to hold off on claiming benefits.The longer you can delay tapping your Social Security benefits, the better. From the time you reach your FRA until age 70, your monthly benefit grows by about 8% each year. Few investments today have that kind of guaranteed yield. Some advisors recommend tapping retirement accounts first and delaying Social Security benefits as long as possible. It\u2019s worth taking a closer look to see how this can be of benefit.If you are planning to retire, but you\u2019re not 65, you\u2019ll need to find and pay for health insurance until you celebrate your 65th birthday. You can enroll in Medicare a few months before your 65th birthday, but if you\u2019re 62, then you have a three-year health insurance gap. Private health insurance is extremely expensive, there\u2019s no way around it. Before putting in that letter to HR that you\u2019re retiring, get some real numbers on this cost. If your employer will consider having you work part-time so that you can maintain your employer-covered health insurance, it may be a good idea.If you\u2019re closer to age 65, then COBRA is a consideration, although it may still be expensive. Typically, COBRA allows you to retain your existing health coverage if you change jobs, or are fired, for a certain amount of time. However, you have to pay for the full cost of health coverage.If your gap is only three months, then COBRA might make sense. However, if your gap is a year or more, then you need to be realistic about health coverage options. Pre-existing conditions and a limited marketplace for individual coverage may make this the reason you keep working until 65. You should also check the rules of going from COBRA to Medicare\u2014they may not be the same as going from an employee plan to Medicare.The more prepared you are for retirement, the more you\u2019ll be able to relax and enjoy this new phase of your life. If these three points have made it clear that you\u2019re not yet able to retire, understand that it is better to work a little longer to reach your eventual goal of retirement, then to find yourself struggling to pay bills and jeopardize a lifetime of savings because of unexpected expenses.Reference: The Motley Fool (Dec. 28, 2019) “Retiring in 2020? 3 Things You Need to Know”For more information on elder law, retirement planning and estate planning, please visit my estate planning website."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"If You Plan to Retire This Year, Be Prepared","item":"https:\/\/www.amorusolaw.com\/blog\/if-you-plan-to-retire-this-year-be-prepared-white-plains-ny-new-york-ny\/#breadcrumbitem"}]}]