One thing we can all be certain of: Boomers will continue to age. In our society, 65 has been known to be a magic number for retirement, but the Boomer generation has changed the very nature of retirement with a desire (and often times a need) to work past the age of 65.
In a past post on his retirement blog, RetirementRevised.com, Mark Miller helpfully reminds us all of the importance of the "big three" if you work past the age of 65, namely, Social Security, Medicare and RMDs (Required Minimum Distributions).
"Working longer is a great way to get the most out of Social Security," writes Miller. The good news is that 66 is the "full retirement age" for Boomers. The importance of this age for working Boomers is that your job earnings after age 66 will not reduce your Social Security benefits. In other words, you can earn as much income as you wish and still earn the full Social Security benefits to which you are entitled. Keep in mind that the later you take benefits up until the age of 70, the higher the benefit amount. However, there is no advantage to waiting past the age of 70, since that is when your benefits max out. Go to SocialSecurity.gov for complete information on Social Security benefits.
The age of 65 is an important marker for Medicare, which is government-supported health insurance. Writes Miller, "...it’s important to sign up sometime in the three months before your 65th birthday up through the three months following, because failing to do so can lead to expensive premium penalties down the road." Medicare offers a number of "parts" or options, so be sure you know what kind of insurance coverage you want, because you will have to pay different premiums for different plans. Medicare is also linked to Social Security, so certain Medicare premiums can be directly deducted from any Social Security payments you receive. Go to Medicare.gov for complete information about Medicare.
Whether you are working or not, Required Minimum Distributions, or RMDs, must be taken from IRAs and other qualified retirement plans beginning in the year you turn 70-1/2. From then on, you must take an RMD each year. The amount of the RMD depends on your own financial situation; this is an area in which a financial advisor can be most helpful.
The "Big Three" will probably be of the utmost importance to ALL Boomers as they age, but they have particular implications for Boomers who work past the age of 65.