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Lost Benefits? Medicare Penalties? Your Answers to Top Retirement Questions
July 15, 2025
Retirement is more than just stopping work; it's stepping into a new phase of life, full of potential and new experiences. But with this excitement often comes a natural set of questions about how to best prepare and navigate the journey. At Security National Bank, we believe in empowering you with the knowledge to make informed decisions.
This comprehensive guide delves into some of the most frequently asked retirement questions, offering insights and practical steps to help you confidently embark on your next chapter.
1. Social Security: When and How to Claim Your Benefits
Social Security will likely be a cornerstone of your retirement income, making the timing of your claim a significant decision.
When to claim:
You can start receiving benefits as early as age 62, but doing so results in a permanent reduction to your monthly payment. Your Full Retirement Age (FRA), which is between 66 and 67 depending on your birth year, is when you receive 100% of your earned benefits. For those born in 1960 or later, your FRA is 67. If you delay claiming beyond your FRA, up to age 70, you'll earn delayed retirement credits, increasing your monthly payment for life.
How to apply:
The easiest way to apply is online at the official Social Security Administration (SSA) website. You can apply up to four months before you want your benefits to begin. Make sure to have your personal details, employment history, and bank account information ready for direct deposit. You can also call them at 1-800-772-1213 or visit a local SSA office.
2. Medicare: Enrollment, Deadlines, and Avoiding Penalties
Healthcare is a significant consideration in retirement, and understanding Medicare enrollment is crucial to avoid costly penalties and ensure continuous coverage.
When to Apply:
Your Initial Enrollment Period (IEP) is a 7-month window. It begins three months before the month you turn 65, includes your birth month, and extends for three months after. For example, if you turn 65 in October, your IEP is July 1st through January 31st of the following year. Applying within the first three months of your IEP ensures your coverage begins by the month you turn 65.
Avoiding late enrollment penalties:
If you don't sign up for Part B (Medical Insurance) when you're first eligible and don't have other "creditable" coverage (like through an employer's group health plan), you could face a permanent late enrollment penalty. This penalty is typically an additional 10% on your Part B premium for each 12-month period you could have had Part B but didn't sign up. Similar penalties can apply to Part D (prescription drug coverage).
Special Enrollment Periods (SEPs):
If you're working past 65 and covered by a group health plan through your job (or your spouse's), you might qualify for a Special Enrollment Period when that coverage ends. This allows you to enroll in Medicare without penalties.
State-specific resources for Medicare guidance:
3. Retirement Lost and Found: Tracing Forgotten Benefits
It's surprisingly common for people to lose track of retirement funds from previous employers, especially after job changes, company mergers, or relocations.
- Department of Labor's "Retirement Lost and Found": This is a key resource designed to help you locate old 401(k)s, pensions, or other benefits you may have forgotten.
- Pension Benefit Guaranty Corporation (PBGC): If your former employer had a traditional pension plan that ended, the PBGC may be holding your benefits. They have a searchable database for "missing participants."
- State Unclaimed Property: Smaller accounts or uncashed checks from old plans can sometimes end up in state unclaimed property funds. Check the unclaimed property website for any state where you lived or worked.
- Other search strategies: Review old pay stubs or W-2 forms, which sometimes indicate retirement plan participation. You can also contact your former employer's HR department directly.
4. Estate Planning: Protecting Your Legacy and Your Wishes
Ensuring your legal and personal affairs are in order provides immense peace of mind for you and your loved ones.
Update your will:
Your will outlines how your assets should be distributed. Any major life event (marriage, divorce, birth of grandchildren, significant changes in assets) should prompt a review and update of your will to reflect your current wishes.
Update all beneficiaries:
This is extremely important! Beneficiary designations on accounts like IRAs, 401(k)s, life insurance policies, and annuities supersede your will. If these are outdated, your assets might go to unintended recipients, potentially causing family disputes and unnecessary tax complications. Review these regularly.
Communicate your wishes:
Have open and honest conversations with trusted family members about your financial, medical, and end-of-life preferences. This clarity can prevent stress and difficult decisions for them during emotional times.
Consider pre-paying funeral expenses
While optional, pre-paying or pre-planning funeral arrangements can lift a significant emotional and financial burden from your family during a difficult period
Designate a Power of Attorney (POA):
Durable Financial POA: Designates someone you trust to manage your financial affairs if you become unable to do so. "Durable" means it remains effective even if you are incapacitated.
Healthcare POA/Medical Directive: Designates someone to make healthcare decisions on your behalf and outlines your medical treatment preferences (often part of an Advance Directive or Living Will). These documents ensure your voice is heard even if you can't speak for yourself.
5. Your Retirement Vision & Lifestyle: Planning for More Than Money
Retirement isn't just about having enough money; it's about having a purpose and a fulfilling lifestyle.
- Define your vision: Take time to seriously think about what you truly want to do in retirement. Will you travel extensively, dive into new hobbies, volunteer, or even start a passion project?
- Create a "Bucket List": Start jotting down those dreams and aspirations. This helps bring your vision to life and can guide your financial planning.
- Life Insurance Review: Your life insurance needs evolve. In retirement, you might need less coverage if your dependents are grown, or you might adjust it for estate planning purposes, such as covering potential estate taxes or leaving a specific legacy.
Look into Long-Term Care (LTC) Policies:
- What it is: LTC insurance helps cover the costs of extended care, such as nursing home care, assisted living, or in-home care, which are typically not covered by Medicare. It's designed to protect your retirement savings from potentially high care expenses.
- Do you need one? If you have significant assets you wish to protect and are concerned about future care costs, an LTC policy is worth exploring. Premiums are generally lower if you purchase a policy when you are younger and healthier.
Travel preparedness:
If international travel is on your retirement bucket list, don't forget to plan for it:
International Travel Insurance: Medicare generally does NOT cover healthcare outside the U.S. It's crucial to purchase a comprehensive travel medical insurance policy that covers emergency medical expenses and medical evacuation.
Phone plan for international travel: Avoid expensive roaming charges! Look into international roaming plans from your provider, consider purchasing a local SIM card (if your phone is unlocked) or an eSIM for data, and utilize Wi-Fi calling whenever possible.
A secure and joyful retirement requires a well-rounded approach. By addressing these key areas, you'll be well-positioned to enjoy your next chapter to the fullest. We understand that this is a lot to consider, and your individual situation is unique.
At Security National Bank, our financial advisors are here to help you navigate these complexities and create a personalized plan that aligns with your retirement vision. Ready to build your confident retirement roadmap? Contact us today for a personalized consultation!