How Should You Prepare For Retirement?

Title:
How Should You Prepare For Retirement?

Word Count:
628

Summary:
If you are nearing the age of 65, it is time to starting planning for what you will be doing when you retire. Planning is the key to success and receiving all the benefits you are entitled to. Do your homework and you will have a wonderful retirement.


Keywords:
benefits, retirement, security, social, social security, *, apply, apply retirement, retirement benefits, birth, plan, don\t, birth certificate


Article Body:
The three major elements of your retirement portfolio are benefits from pensions, savings and investments, and Social Security benefits.

To help you plan for retirement, each year we send you your personal Social Security Statement, which gives you an estimate of the monthly benefit amounts you and your family may qualify for now and in the future. If you've received your Social Security Statement and have questions about it, visit http://www.socialsecurity.gov/mystatement/.

Once you've reviewed your Statement, you may want to explore a variety of retirement scenarios using a range of assumptions about your future earnings or when you stop working. You can do that with our Retirement Planner. The Planner not only tells you how to qualify for Social Security benefits, but it also includes Benefit Calculators that help you calculate your own benefit estimates.

When should you retire?

Generally, you should apply for retirement benefits three months before you want your benefits to begin.

* If you were born before 1938 and you meet all other requirements, you can receive benefits beginning with the first full month you are age 62. However, if you choose to begin receiving benefits before age 65, your benefits will be reduced to account for the longer period over which you'll be paid.
* If you were born after 1937, you also can start your Social Security benefits as early as age 62, but your full retirement age is more than 65.

Even if you don't plan to receive benefits right away, or decide to wait until after you reach full retirement age, you still should sign-up for Medicare three months before your 65th birthday.

Choosing the month you start to get benefits is an important decision. If you are not quite ready to retire, but are thinking about doing so in the near future, the Social Security Retirement Planner will help you prepare. If you plan to continue working after you reach age 62, it may be to your advantage to start your retirement benefits before you stop working.

How do you apply for retirement benefits?

You can apply for retirement benefits online, but not for Medicare. To apply for retirement benefits, just connect to the Internet Retirement Insurance Benefits application and follow the instructions. To apply for Medicare, call or visit your local Social Security office.

Or you can make an appointment for your application to be taken over the telephone or in person at a convenient Social Security office.

If you're deaf or hard of hearing, call our toll-free TTY number, 1-800-325-0778, between 7 AM and 7 PM Monday through Friday.

When you apply for benefits, you'll need the following:

* Your Social Security number
* Your birth certificate (if you don't have a birth certificate, you can get one from the State where you were born. See Where to Write for Vital Records for details on where to write)
* Your W-2 forms or self-employment tax return for last year
* Your military discharge papers if you had military service
* Your spouse's birth certificate and Social Security number if he or she is applying for benefits
* Children's birth certificates and Social Security numbers, if they're applying for children's benefits
* Proof of U.S. citizenship or lawful alien status if you (or a spouse or child applying for benefits) were not born in the U.S.
* The name of your bank and your account number so your benefits can be directly deposited into your account.

Social Security will need original documents or copies certified by the issuing office. You can mail or bring them to a Social Security office. They'll photocopy and return your documents.

Don't delay your retirement just because you don't have all the documents we need--the people in your local Social Security office will help you. Don't wait until you are 65 to plan for your golden years.

Want to remortgage but are worried about your personal data?

The recent scandal where the personal data of 25 million people went missing is worrying. Lots of companies today want your personal details and very often they don’t need them and shouldn’t be asking for them. This is more common in the mortgage market than almost anywhere else. Mortgage comparison sites ask you to provide your phone number so that a broker can call you back. What’s more concerning is that often you won’t know which company is going to call you back because the website you were using has sold your details to another company (usually the highest bidder) and even they don’t know who they have sold them to! However there are sites that do things properly. A good example of this was quoted recently when a website user said “Found this site very useful and easy to use. It gave me the information I needed without having lots of people keep contacting me by telephone. I work full-time during the day and also have a part-time evening job so finding time to take 'information gathering' telephone calls was not what I wanted but it was amazing how many sites say that it is online and then when you have submitted the form then say 'someone will contact you' and do not provide any useful information online.” If you are concerned about your personal data and don’t want to be called by someone you don’t know, then make sure that you use a real mortgage comparison site – one that actually compares the whole of the mortgage market and let’s you apply for the mortgage there and then. Be wary of sites that are actually just there to make money by selling your details to a broker. You should be able to get a personalised illustration without giving your contact details. Get the right site and not only will your data be secure but you will improve your chance of finding the right deal for your remortgage.

Can I Receive Federal Benefits If I Retire In Thailand?

It is possible to receive federal benefits in Thailand. To apply for Social Security benefits, you need to apply to the Social Security Administration 3 months before reaching the age of 62 by completing a questionnaire.

The U.S. Embassy can provide copies of the questionnaire. Once completed, the questionnaire is then sent to the regional Social Security representative in Manila, Philippines. They will then reply directly to the applicant and will provide additional forms, which need to be sent directly to the Social Security Administration in Baltimore, Maryland. The Social Security Administration recommends allowing 120 days for processing.

The address of the regional Social Security Representative is:
Social Security Administration
U.S. Embassy
1131 Roxas Blvd.
0930 Manila Philippines

The address of the Social Security Administration main office is:
Social Security Administration Office of International Operations
P.O. Box 17769
Baltimore, MD 21235 U.S.A

Most U.S. Treasury checks are sent first to the Embassy, which then distributes the checks to recipients. The Embassy suggests that checks be deposited directly into the recipient’s bank account. This helps prevent difficulties in cases of lost, stolen, misplaced or late checks, as well as delays in accessing funds due to bank clearance rules.

If you would like your check to be direct deposited into a bank account in Thailand, you need to contact Bangkok Bank. This is the only Thai bank in which Social Security payments can be direct deposited. Their address is:

Bangkok Bank Foreign Exchange Department
333 Silom Road
Bangkok 10500 Thailand

If you already receive Social Security or other federal benefits in the United States, and you intend to move to Thailand, please notify the Social Security Administration or other federal agency of your change of address. Your benefits will then be sent to your new address. Contact the Consular Section to advise us of your residence in Thailand and inquire about the procedures for having your benefit checks sent overseas or deposited directly into your account.

You may reach the Federal Benefits Unit of the Embassy at 0-2405-4272.

Family Finance

One of the hardest things that young couples report during their first year of marriage is getting to grips with joint finances. While most are willing to share what they have with their partner, they are not sure on the best way to bring this sharing into effect so that they can share with their new partner, but at the same time maintain financial security and a degree of independence. Some couples resolve this by resorting to separate finances and others find a way to keep things together, but it is generally reported as one of the biggest strains on newly married couples.

As well as this, there is also the problem that many people find it difficult to budget and control their finances. It is one thing to fail to keep track of expenditures when you are single, but when you are married you have more to answer to than just yourself. This is especially true once you have children. If one partner fails to keep control of their spending while the other is forced to worry about finances, it can create an enormous strain on the relationship.

Family Budget

One of the best answers to this dilemma is to create a family budget. This should outline what is allowed for the various expenses, which is to be responsible for what expenses and how much each partner can spend on discretionary expenses. While this may seem like a drastic response that takes away all the responsibility and financial independence from both partners, all it is really doing is getting both parties to sit down together beforehand and work out how much they can afford to spend on what, and then sticking to this. It is about being in control of your expenses rather than letting them have control over you.

Other ways of taking care of difficulties between married couples is to divide out the family expenses depending on how much each partner earns. This way both will feel responsible for the security of the family and will feel like they are an important contributor to the family finances.

Financial Matters

While each partner should have a degree of financial freedom, and also privacy, finances should be discussed openly and with without shame. Past debts or mistakes that one party has made should be put in the past and should be forgotten. At the same time, if one partner shows that they are unable stick to the budgets they have agreed, their financial freedom will have to be taken from them and they should be given a tight leash in financial matters.

Helping Your Money Last... After Your Last Paycheck

A look at different ways to afford retirement Today's seniors can expect a longer retirement than their parents. That means more years to finally do what you want to do, including travel and hobbies (not to mention spoiling the grandkids). But a longer retirement also means more years of money going out and no paycheck (or only a small one) coming in. That's why seniors need to be smart about how they pay for their retirement years. "You really need to have a strategy to make sure your savings last," said Lee Bowman, National Coordinator of Community Affairs at the FDIC. To help you set or adjust your own plans for affording retirement, FDIC Consumer News offers this look at some different sources of money, including some potential pitfalls to avoid. But first, remember that this is general guidance only. Your own need for retirement money will depend on factors such as your health-care costs or whether you plan to earn part-time income. As with any major financial decision, be sure to consult with financial advisors and loved ones to decide what strategies are best for you. Social Security and Pension Benefits: Your first order of business: Determine when the best time is to start tapping this money. For example, if you start receiving your Social Security benefits before your "full" retirement age (which could be anywhere from 65 to 67 under current laws), your benefits will be reduced permanently, and perhaps significantly, from what they would be at your full retirement age. And if you receive Social Security benefits early, but you continue to work and your earnings exceed certain limits, your benefits will be reduced even more until you reach full retirement age. On the other hand, if you delay collecting Social Security until after your full retirement age, you can continue to work and still get your full retirement benefits, or even higher benefits, no matter how much you earn. Here's basic guidance from the Social Security Administration (SSA): "As a general rule, early retirement will give you about the same total Social Security benefits over your lifetime, but in smaller amounts to take into account the longer period you will receive them. There are advantages and disadvantages to taking your benefit before your full retirement age. The advantage is that you collect benefits for a longer period of time. The disadvantage is your benefit is permanently reduced." Employer pension plans usually have options somewhat similar to those of Social Security. Contact your employer's personnel department for guidance. No matter when you decide to start receiving your benefits, remember that it could take several weeks to receive your first payment. Also consider having your payments deposited directly into your bank account so you don't have to worry about a check getting lost or stolen in the mail. IRAs, 401(k)s and Other Retirement Savings Plans: As with your Social Security and pension benefits, you may want to delay tapping into your retirement accounts as long as possible so they can continue to grow to cover unexpected medical costs in the future or to protect the inheritance for your heirs. However, if you need to supplement your income, Individual Retirement Accounts (IRA) and other retirement savings can be a good source. Before you start withdrawing money from your retirement accounts, most financial planners suggest setting a target annual withdrawal rate. Make it low enough to avoid depleting these funds too quickly. You can fine tune your withdrawal strategy each year, preferably with the guidance of your financial or tax advisor. For example, if your personal situation changes, you can adjust how much you should withdraw. Also review your retirement portfolio — your mix among stocks, stock mutual funds, CDs (certificates of deposit), bonds and so on — to be sure it's well-diversified. Another caveat: If you have retired, every year after age 70 ½ be sure to take out at least the minimum required distribution from your tax-deferred retirement savings plans (except Roth IRAs) to avoid large IRS tax penalties. (If you are still working at 70 ½ or later, you do not need to start taking minimum distributions from your employer's plan until April 1 of the year following the year you finally retire.) "Remember, you only have to withdraw the money, you don't have to spend it," said Heather Gratton, an FDIC Senior Financial Analyst. "If you don't need the money you can reinvest it somewhere else, such as in a bank savings account." She added that, because each person's situation is different, it's best to discuss your strategy with your tax or other advisor.