A citizen born in 1953 would be 69 years old. I promise you: there are no 69 year olds working at our agency.
Anyway, I did learn something valuable. I'm glad I have the information, even if I'm not crazy about the ramifications. As the law stands now,* if my income in retirement is more than $25,000, I will need to pay at least some tax. However, I won't be required to pay taxes on the entire amount of my Social Security check. Right now,* there's a cap so no more than 85% of my SS payment is taxable.
Do I understand this? Kinda sorta. But here was my key takeaway ...
Retirement will not be easy. I hoped when I stopped earning money, the paperwork surrounding money would be reduced. That's simply not true. I will forever be wondering if I have the right Medicare supplement plan. I will forever be handing documents over to an accountant to do my taxes and keep me out of prison.
Oh well, as Maurice Chevalier once said, "Growing old isn't so bad when you consider the alternative."
*And these laws could change and change again before I start collecting.
My husband is 66 now so he has Medicare, but he is also still on my insurance so he is still trying to figure out the whole Medicare supplement thing. I hope he figures it out, and then when I get to that age, he can teach me what to do about it. I plan to teach four more school years after this one, then I will be 66 - almost 67. I am hoping that between hubby and I we can make it with our pensions (from two states) and his Social Security so I don't have to take mine until I am 70. I think you get more money if you wait until you are 70 - but I am not sure. Like you, I find it all so very confusing. When you figure it all out, let the rest of us know. ;-)
ReplyDeleteYes, it is always changing. My basic Medicare payment just went up from around $145 to $170 a month. This is for the basic. I was born one year after that cut off.
ReplyDeleteMy husband is your age, so we're trying to sort through some of this, too. It is inexcusable that the government has made this so trying for people who are entering their golden years, people who shouldn't have to worry about tax accountants and health plans and such.
ReplyDeleteI hope I can afford to retire.
ReplyDeleteI do not know how I am going to navigate retirement if and when I am able to attempt it! HA!
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