Milestones in your future
Baby Boomer's Financial Timeline
by Debra Karplus
7 Social Security Sins
6 Facts Baby Boomers Need to Know About Credit
Social Security Benefits If You've Been Married More Than Once
According to the Administration of Aging (AOA), in their most recent published data, in 2010, there were approximately sixty million people aged 45 to 63. That large number of people born between 1946 and in 1964, the post-World War II population explosion, is called baby boomers. That was approximately 22% of the American population nationwide at that time. Today, the youngest of the baby boomers is edging in on their 50s; the oldest are approaching their eighth decade. There are several notable age milestones for baby boomers to be aware of and plan for.
When you were growing up, turning 13 transformed you into a teenager. At 16 years old, you were old enough to drive. The next major milestone for you was being able to vote and enlist in the military. But today's baby boomers have their own set of exciting rites of passage to look forward to and to embrace that make life even better than it already is.
Reaping the benefits of aging begins at age 50.
The American Association of Retired Persons (AARP), a huge organization and lobby group for older Americans, will welcome you into their membership by the time you turn 50. For only a $16 annual membership, which is cheaper per year if you join for three or five years at a time, there are numerous benefits to members that will quickly make the membership worth your while. Members can enjoy discounts on travel, entertainment, health, financial, and much more. There's no obvious reason not to join AARP once you turn 50.
The Osher Lifelong Learning Institute (OLLI) is located in many college towns and other communities. These college-type classes, study groups, lectures, group travel and more are for people over 50, but there are no grades, required attendance, dorms, or hangovers, just learning for the sake of learning. OLLI memberships typically offer an array of useful benefits. OLLI at the University of Illinois, for example, with its $150 annual membership, includes a city bus pass, which if bought individually is $72 per year.
59 1/2 is no longer just a mirage for baby boomers.
When you started saving for retirement with an Individual Retirement Account (IRA) or a Roth IRA, the age 59 1/2 seemed light years away. Then one day you woke up and realized that it was your half birthday, that magical age between 59 and 60 years old. Most adults don'rt give much thought to half birthdays, but this one is quite significant. The Internal Revenue Service (IRS) has specific guidelines regarding how and when you can withdraw money from your IRA. The Roth IRA tends to be much more liberal pertaining to withdrawals. Presumably your financial broker or places where you have investments, such as Fidelity Investments, can help you make financial decisions about making withdrawals.
Social security eligibility begins at age 62.
The Social Security Administration (SSA) allows you to apply for social security benefits a few months before you turn 62. Their website walks you through all the ways you can complete the application process, including online, by phone, or in person. Many financial professionals will advise and encourage you to wait as long as possible to begin collecting Social Security benefits, but this decision should be based on your current health and expected longevity, your financial situation, and other pensions and ways you may have provided for your golden years. Request a few opinions from knowledgeable experts before applying for benefits. It may be to your advantage to wait and overall receive significantly larger monthly payments from the SSA.
Amtrak considers you to be a senior at age 62 also. Expect a 15% discount on your travel. This may be the time to take that cross country train trip you had always fantasized about. Check www.amtrak.com to learn more about what Amtrak has to offer to their senior passengers.
The sky is the limit at 65.
Most airlines offer enticing discounts to seniors, people over 65 years old. It varies from airline to airline. Next time you are booking a flight online, click on the senior rate to see what kind of discount you might look forward to when you turn 65.
Discounts for seniors exist in some other places that you might not expect. Movie theaters typically offer senior discounts that often are even lower than matinee admission. The people working at these ticket counters often do not know what age is considered "senior." If you are over 30, you probably look old to them! Your auto repair shop may have lower prices for their senior customers. Your appliance repairman or handyman may offer senior discounts, too. It always pays to ask.
Debra is an occupational therapist, accountant, teacher and freelance writer. She is a writer for Advance for Occupational Therapy Practitioners. She also writes for Grand Magazine, has some items (fiction and non fiction) selling on Amazon.com (kindle), has written several travel articles for the Champaign-Urbana News-Gazette and several articles for freelancewriting.com. Learn more about her at DebraKarplus.blogspot.com.
Take the Next Step:
- Use this tool to maximize your retirement by determining the best age to take your Social Security benefits. Don't leave thousands on the table by taking Social Security at the wrong time.
- Subscribe to After 50 Finances. You've learned how to work smarter, not harder. This weekly newsletter is dedicated to people just like you. Subscribers get a FREE copy of our After 50 Finances Pre-Retirement Checklist, a list of everything you need to do to be ready for retirement.
- Determine if debt could derail your retirement and what you can do about it now. Our checklist can help you. Afterall, one of the most important ingredients for a comfortable retirement is to be debt free when you retire.
- Find information geared specifically for Baby Boomers in The Dollar Stretcher section dedicated to your financial issues. If you're over 50 your financial needs are different. And so are your questions.
Share your thoughts about this article with the editor.
Baby Boomer Tools & Resources
- A tool to determine the best time to take Social Security benefits
- Get out of debt before you retire
- Get free answers to financial questions
- Get free answers to legal questions
- Retirement shortfall calculator
- Life expectancy calculator
- IRA required minimum distribution calculator
- More retirement planning calculators
Trending in Baby Boomers
- Investing retirement money that you may never need
- Financial tips when nearing retirement
- Why pay off your mortgage with a reverse mortgage loan?
- 3 ways retirees can tap into their home equity
- Using credit cards in retirement
- Could an underfunded government pension put your retirement at risk?
- Get onboard with affordable train travel
- This week's Readers' Tips