SOUTHFIELD, Mich. (WXYZ) — Retirement is something many workers envision one day, but it can be a daunting task to plan for, especially since things change from year to year.
Some changes taking effect this year could mean more money in your pocket. This year, retirees can expect changes to Medicare, Social Security, and when you can start withdrawing money from your Individual Retirement Account.
Retirement is in full swing for Elaine Mclain.
“My concept of retirement is that you never really retire,” Mclain said.
And this is not the first time that she has left the labor market.
“I graduated from Seaholm High School, which is just around the corner, and went to Mercy College in Detroit. I’m a child and adolescent psychiatric nurse. I did that from a very young age. I continued to do some forensic business consulting and then retired the first time to raise my family,” Mclain said.
She says that while she has been able to plan for her future, she knows it is an ever-changing landscape for many, as changes occur every year.
“I have friends who are widows who are really struggling with what comes next or small single families or entrepreneurs who don’t know what’s going to happen if we have a recession or inflation continues,” she said.
This year, retirees or those nearing retirement age can expect further changes, including Medicare cost cuts and an increase in Social Security. Additionally, the age at which you must start withdrawing money from your IRA accounts is also being pushed back.
“It means they’ll have the ability to grow their money without having to worry about taxes on those distributions that they’ll have to take because it’s really a strength to spend your money,” the Detroit Financial CEO said. , Jimmy Pollack.
He says that although there are many changes every year, that doesn’t necessarily mean you should be afraid.
“The general topics that are talked about don’t apply to everyone in the same way. For each of us, those needs are very different,” Pollack said.
Pollack says that for anyone planning to retire, saving will be king, and the sooner you start, the better.
“One of the things I often hear from young people is that when I earn a little more money, I’m going to start saving. I haven’t earned enough to start saving. And the reality is that it doesn’t matter if you save $50 per salary, per month, per quarter, just put it aside, because the longer the money sits, works and grows, the better off we will be financially,” Pollack said.
Pollack says his best advice for anyone planning to retire soon is to start by setting a realistic budget and consulting a professional.