Working Past Age 65? Here's How It'll Impact Your Financial Planning

  • By Jen Steever
  • 27 Jul, 2017

Growing Number of Seniors

The number of senior citizens is expected to grow from the current 40 million to 90 million in 2050. This will lead to an increased demand for healthcare services, housing, and -- more than likely -- financial planning services . To make matters even more complicated, a 2015 Gallup poll found that 37% of Americans won't retire until after the age of 65. Whether it's due to personal preference or because they simply cannot afford to retire until much later in life, seniors need to understand that the decision to keep working will impact their financial planning options. That's why it's so important for you to explore the types of financial services available to you now to help you prepare for this type of situation. But if you haven't yet seen a financial planner, you should be aware of how your delayed retirement can affect your financial options.

Working seniors may be required to withdraw from their retirement account

You can continue adding to your retirement account as a working senior, but only up to a certain age. Once you celebrate your 70th-and-a-half birthday, you may be required to take a minimum distribution from your 401(k) or IRA, depending on the type you have. You may be financially set without this extra income, but it can actually put you into a higher tax bracket and completely derail the financial planning you thought you already took care of. But if you have a Roth IRA or an employer-based 401(k), you might not have to take these withdrawals, regardless of your age. You should work all of these details out well before you reach 65 so that you have the option to keep working without being forced to take money out of these accounts.

Working seniors can be penalized for using their Social Security

´╗┐If you aren't earning enough from your current employment situation, you may need to take advantage of Social Security. But you should be aware that you'll lose benefits for doing so. Before making a determination as to whether this step is necessary before you retire, talk to your financial planner and see whether there are areas in which you can cut back on spending or on credit card charges. You may need to tighten the purse strings, but it's often a better financial decision than using your Social Security when you're still part of the workforce.

Working seniors should still sign up for Medicare

If you're still covered under your employer's health plan, you may not think you need to sign up for Medicare . But even if you stay on that health policy, you still need to enroll by the time you turn 65. Otherwise, there are big penalties involved: for every year you fail to sign up, you get an additional 10% penalty. Your employer's policy can cover your primary coverage, but Medicare Part B and D can be a big help in other ways. For many folks, it just makes more sense to use Medicare as their primary coverage but use their employer's plan as a backup. With proper financial planning and a complete understanding of your healthcare plan, you can make a decision as to which option will work best for you.


As we age, our financial situations can become a whole lot more complex than they used to be. Therefore, it's important to work with a reliable financial planner to gain understanding and create a plan that will allow you to retire at the age you want to. To find out more about how working as a senior over the age of 65 may impact your finances, contact us today.


By Jen Steever 06 Sep, 2017
Last month, we addressed a question about the best Medicare Insurance options. We discussed what options folks who are employed by the military, state and local government, or private employers, should explore and plan for.

We will now tackle the options available to the majority of us who retire and go on Medicare. Unlike the folks we discussed last month, when you retire and no longer have commercial health insurance options, it is highly recommended that you get both Part A and Part B of Medicare. Part A has no continuing cost associated with it as it is paid for over the course of our entire working career through payroll deductions. Part B currently costs approximately $105 and is deducted from your Social Security or disability benefits every month.
By Jen Steever 17 Aug, 2017
That is very difficult to answer in the limited space of this blog, so we may continue it in others so that we get these answers just right by answering very carefully. First, not knowing your personal situation, we will explain the different options available for various individuals.
By Jen Steever 15 Aug, 2017

No one likes to think that their health could fail at any point, or that it will likely decline as you age. But it is important to keep these thoughts in mind, especially since the average 65-year-old American has a 70% chance of needing long-term care services in their lifetime.

When you take into consideration that the average medical expenses of a 65-year-old couple can total around $218,000 over 20 years, it's clear why so many people choose to invest in long-term care insurance. For the same reasons, Medicare supplement plans could be a huge money saver in the post-retirement years to come.

If you are wondering whether long-term care insurance is the right financial decision for you, then keep reading to learn more.


By Jen Steever 27 Jul, 2017
The number of senior citizens is expected to grow from the current 40 million to 90 million in 2050. This will lead to an increased demand for healthcare services, housing, and -- more than likely -- financial planning services . To make matters even more complicated, a 2015 Gallup poll found that 37% of Americans won't retire until after the age of 65. Whether it's due to personal preference or because they simply cannot afford to retire until much later in life, seniors need to understand that the decision to keep working will impact their financial planning options. That's why it's so important for you to explore the types of financial services available to you now to help you prepare for this type of situation. But if you haven't yet seen a financial planner, you should be aware of how your delayed retirement can affect your financial options.
By Jen Steever 07 Jul, 2017
from J. Elvin Dashiell and the Senior Information Corner
By Jen Steever 23 Jun, 2017

I have received so many questions over the years regarding the safety of certain investments so I would like to share with you about "safe" and "no risk" investments. I would like to define what those terms mean and how they apply to financial planning. Customers often believe investment choices are supposed to become more conservative and less risky as they approach retirement. They don't always know how to evaluate an investment's risk.

By Jen Steever 14 Jun, 2017
Approximately 45 million people are enrolled in Medicare due to their age, so if you're a senior over the age of 65, you're probably at least a little familiar with what these plans can offer. While original Medicare can provide coverage for vital services, these policies often don't cover every expense. That's why Medicare supplement policies are so popular: they can help bridge these gaps. But because there are so many Medicare supplement plan options to choose from, it's easy to become overwhelmed and confused. Below, we've explained these supplemental plans in a bit more detail.
By Jen Steever 07 Jun, 2017

There's a lot of pressure that comes with planning for your retirement. It's such an individual process for everyone, which makes it difficult to figure out the best course of action for your situation. That's why so many seniors turn to experienced financial planners to help them through the process. But before you explore the different types of financial services available to you, you'll do well to learn about the particular pitfalls seniors tend to experience when planning for their retirement. We've outlined three of them below.

By William Bryant 05 May, 2017

Recently, I received a question from an anxious potential customer who was about to turn 65. Her greatest concern was the confusion about all of the decisions that she needed to make with respect to Medicare. She asked me to simplify that process for her. From Medicare Advantage plans, Medicare Part D prescription drug plans , to Medicare Supplement plans (Medigap plans), Medicare IS confusing! As a matter of fact, the primary statement that I hear from people who are going on Medicare is, “I have never experienced anything as confusing as Medicare.” I am communicating this in a blog in an attempt to reassure seniors that they are not alone in their frustration. Let me try to explain why the information might be confusing.

First, you have several printed materials from the government. The way the material is written, the information often seems to contradict what you read in other publications. Secondly, you may have well-meaning family or friends who provide their own understanding about how Medicare works. Lastly, you receive stacks of mail and materials from many different insurance companies all stating that their plans are better, cheaper, or both.

By William Bryant 21 Apr, 2017

No matter your age, health insurance plans can be confusing. But if you're a senior over the age of 65, it becomes increasingly important for you to make the right choices with your healthcare. By the year  2030, Medicare enrollment  is expected to rise to 79 million people across the nation. With so many participants, there are bound to be folks who make the wrong decision as to which Medicare policies and Medicare supplement plans they choose.

For many seniors, one of the most pivotal parts of their medical care may be their prescription drug plan. Most seniors will have to determine whether Medicare Advantage (known as Medicare Part C) or the Medicare Prescription Drug Plan (known as Medicare Part D) is the best fit for their needs. If you want to determine whether Medicare Part D is the right choice for you, you'll want to ask your provider the following three questions.

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