Getting older might seem like a downhill ride, but there are several advantages to advancing age. Among them are retiring and being able to devote more time to the things you have always wanted to do, such as traveling or pursuing hobbies.
Seniors also get to spend more time with family and friends, volunteer at charitable organizations, and form new social circles.
However, these are not the only benefits. There is a set of financial perks that come with getting older that all seniors should know about:
Education and senior services
While college might be out of many young people’s financial reach, few seniors know that they can attend classes for free or at heavily reduced rates. Many people take advantage of these opportunities when they retire if they plan to continue working or start their own business in a new industry or sector.
Seniors can also access other services, like low-cost taxi or van transportation services, to help them attend medical appointments, and do their grocery shopping. Local senior centers offer low-cost meals, entertainment, exercise classes, computer literacy courses, and the chance to socialize with others.
Medicare benefits
From the age of 65, senior citizens are entitled to Medicare, which covers Parts A and B. Part A is free and covers hospitalization. Part B comes with a monthly premium that can be deducted from Social Security retirement payouts. It covers diagnostic treatment, such as visits to the doctor.
To avoid the often hefty copayments that come with being on Medicare, Russell Noga, an expert from Medisupps, advises seniors to invest in Medicare Supplement Plans 2021. These plans augment coverage for Parts A and B, include Parts C and D, that cover additional services and prescription benefits.
There are several plan options available, and consultation with a professional will help seniors choose the best one to suit their needs and budget.
Social Security retirement benefits
Your retirement benefits from Social Security can kick in as early as age 62, although benefits will be reduced as you are not yet of full retirement age. Full benefits kick in if you claim at the right age, which is 66 or 67, depending on your birth year. For even better benefits, delaying your application for Social Security until the age of 70 is advisable. Benefits continue paying out until your death.
Some older people elect to leave their existing jobs in their 50s because the demands are difficult to meet. They often elect to set up consulting businesses or sell their skills and expertise on a freelance basis or try working in a different field.
Tax benefits
Seniors are eligible for an extra tax deduction, starting with an increased standard deduction that kicks in at age 65. There are additional tax deferral programs for property or school taxes that vary from one state to another if your income is below a specified amount.
Deferral on the payment of income tax of 401(k) contributions applies to workers from the age of 50 onward, and the IRA contribution limit rises. However, the tax bill on this deferral must be settled when the taxpayer is aged 70 and a half.
Senior discounts
Many stores have special senior shopping days when you are entitled to an additional discount on your purchases. The age threshold at which you qualify varies from one store to another. National Parks, museums, theaters, and other entertainment complexes offer discounts to people over a certain age.
Usually, providing proof of your age is all that is required. Many hotels, tour operators, and rental car companies offer seniors discounts, and they can pay reduced rates when traveling using Amtrak or Greyhound.