6 Perks of Growing Older in 2020
As more baby boomers continue to reach retirement age, we’re facing unique revelations, challenges and perks that come with the territory. And in some cases, that can mean more money in our pockets. With so many people living longer, it’s time to celebrate getting older. Here’s how nearing retirement age can help you save money:
Increased retirement account limits. For 2020, the IRS has increased the 401(k) contribution limit for eligible employees to $19,500. If you’re 50 or older, you can also make an additional “catch-up” contribution up to $6,500. If you’re still working, it’s a great opportunity to put more away for the future.
Medicare eligibility. Once you turn 65, most American workers become eligible for Medicare healthcare coverage. But keep in mind, unless you're already receiving Social Security benefits, you won’t automatically be signed up to receive Medicare. Begin the process of signing up for Medicare as early as three months before turning 65, to help ensure that your coverage begins the month of your milestone birthday.
No more penalties for IRA or 401(k) withdrawals. You don’t have to be in your 60s to begin enjoying your golden years. Once you hit 59½, distributions from qualified retirement plans, including IRAs, are no longer subject to the 10% additional tax on early distributions, according to the IRS.
Exclusive deals and discounts. How about a discount on your next restaurant meal, theater tickets or museum admission? If you’re 62 or older, you might also be eligible for a good deal on a rental car or a hotel reservation. Many entertainment and travel companies provide discounted services to a certain age bracket. Download the You Gave, Now Save guide from the National Council on Aging to learn more about benefits programs related to healthcare and prescriptions, food, utilities, tax and legal support, and more.
Special services. Check out the local community center for affordable classes, entertainment and opportunities to socialize. Many towns also provide low-cost taxi or van services or discounted public transportation to help older residents get around.
Eligibility for a reverse mortgage loan. This highly flexible home equity loan option is designed specifically for homeowners and homebuyers age 62 and older. It allows you to borrow against the existing equity in your home to create a flexible line of credit; refinance your mortgage or consolidate debts to reduce monthly bills; get funds for major home renovations; supplement your retirement income; or finance the purchase of a home that better fits your life. As with any mortgage, you’ll have to meet your loan obligations: Keeping current with property taxes, insurance, maintenance and any homeowners association fees.
Celebrate another birthday — and cash in on the benefits.
Instead of focusing on the downsides of aging, embrace the opportunities and privileges that come your way. To learn more about the benefits and advantages associated with a reverse mortgage, call Reverse Mortgage Funding LLC (RMF) at 888-277-1567 to connect with an experienced reverse mortgage specialist who can help you evaluate if it may be right for you.
SEE WHAT FUNDS YOU MAY HAVE AVAILABLE
If you have equity in your home and believe you meet the eligibility requirements, a HECM may be the option that could help you retire smart.
†Not financial advice. Consult a financial professional.
This information is intended for those who are interested in financial education. This information is provided for convenience only, and RMF make no warranties concerning the accuracy or completeness of any of the information. Information is subject to change without notice, and RMF is under no obligation to provide updated information. Materials or statements made by a third party and located or posted on the Site are those of the third party and do not necessarily reflect the official policy or position of RMF. This is not financial, tax, compliance or legal advice and should not be taken or relied upon as such. Each individual should consult with his/her financial, tax, or legal professional. All mortgage origination services are provided by Reverse Mortgage Funding LLC, a state licensed mortgage lender, which is licensed or otherwise exempt from state licensing in the states in which it originates mortgage loans.