How Older Adults Can Access Their Social Security Benefits

If you work until the age of 66, you will be able to claim your full Social Security benefit for retirement. This age is subject to change, however. Individuals who were born in 1956 will need to wait until they are 66 and four months to claim their full benefit. The retirement age will continue to increase until it reaches 67 for everyone born in 1960 or later.

What Are Your Options if You Need to Claim Early?

If you start collecting social security benefits before the age to receive full benefits, you get a smaller payment. Currently, you receive 25 percent less than if you wait until full retirement age to begin collecting benefits. For most people, it makes sense to wait until you reach the full retirement age to begin collecting social security.

What if You Need to Retire Early?

It is estimated that one in every four workers will become disabled before reaching retirement age. In cases where this happens, you may qualify for disability payments. To qualify for social security disability, you must have a medical condition that will prevent you from working for at least a year, or that will result in your death. 



If you have a partial disability or a short-term health condition, you do not qualify for this benefit. You must meet the definition of disability as it is spelled out by the social security administration and be younger than the full retirement age. Certain family members of the disabled may also be able to collect disability payments.

What is the Process for Applying for Social Security Disability?

If you believe that you or a family member qualifies for social security disability, you can fill out an application online. The process to collect disability from the social security administration can be lengthy and complicated. 

It often makes sense to contact one of many social security lawyers to speed the process along. It is not uncommon to initially be rejected for disability, but for the payments to be granted on appeal.

What Happens When You Reach Full Retirement Age?

If you are still receiving disability payments when you reach full retirement age, your payments will convert to retirement benefits. When most workers retire, their social security is based on their previous 35 years earnings. 

To prevent years spent collecting disability from lowering your retirement benefit amounts, the Social Security Administration ignores the years spent collecting disability when determining your benefits.

The process of applying for social security benefits can be overwhelming and intimidating, particularly if it is happening at a time when you are already facing a health crisis. 

Having someone to help walk you through the process can provide emotional support at this critical time. Someone familiar with the process can also make sure you have the paperwork necessary to get your claim submitted properly.

Retirement Plan: 3 Extra Comforts to Consider Saving For

Budgeting for retirement is challenging for many people. After all, to properly prepare your finances for your non-working years, you need to determine each expense that you may need to pay for. 

You also need to assign a reasonable estimated cost to each expense. While some expenses are obvious, such as housing expenses and food, there are a few additional expenses that you may not currently have in your projected budget. 

While these additional items are not essential, they can improve your quality of life in retirement.

Frequent Travel

Many retirees plan to travel in early retirement, but they may plan to remain closer to home as they advance in age. Some travel plans may be relatively affordable, such as spending a few weeks with an adult child in his or her home. 

Other plans may be much more expensive, such as spending a few weeks vacationing in Europe. Ensure that you budget appropriately for your travel plans so that you are not stuck at home unnecessarily.

In-Home Healthcare Services

You may equate in-home healthcare services to hospice and other significant services, but traveling doctors and nurses can also visit your home for routine exams, sick visits and more. 

Your need for medical care likely will increase substantially as you get older, and this is at a time when your mobility may be declining. Budgeting for the extra expense of in-home care for even seemingly minor needs can be a true convenience later in life.

New Vehicles

Many retirees continue driving their own vehicle for decades after they leave the workforce. They enjoy the independence associated with having a personal method of transportation. 

However, many people fail to budget for the replacement of their vehicle from time to time. You may drive the same vehicle for many long years in retirement, but you eventually will want or need to replace it with a newer model. 

Rather than plan to take out an auto loan and increase your monthly expenses, consider saving money so that you can make a few new car purchases in retirement using cash.

One of the most important steps to take to ensure that you have enough money in retirement to enjoy the lifestyle that you desire is to budget intelligently for that lifestyle. 

Consider adding these and other extra comforts to your budget that can improve your quality of life. When you budget appropriately for them, you can adjust your savings and investment goals accordingly and ensure that you have money available to spend on these items.

How to Live Comfortably on a Fixed Retirement Income

When you're working, it's relatively easy to put in some extra overtime to boost your earnings. After you retire, however, you have to adjust to living on a fixed income; that means freeing up room in your budget so that you have cash in the bank for when something unexpected happens. You don't have to suffer through your retirement, but practicing a little frugality will help you build a financial cushion for unexpected expenses.  

Dine In

On average, Americans spend nearly half their budget on food. One of the best ways to cut your expenses is to cook more at home. Take advantage of having more time in your schedule and spend some time exploring new recipes, you may even find that you enjoy cooking more than you thought. You don't have to live on Ramen noodles, but be reasonable about your food budget and mix-up "treat" nights where you may have something more expensive like steak with other nights where you have less expensive meals like pasta. Try to plan your weekly meals in advance so that you don't overspend when you go to the grocery store. 

Give Up Your Landline

Many retirees like the security of having traditional telephone at home and a cell phone for when they are on the road. While that is a nice luxury, it also means you have two phone bills to pay every month. Since long distance doesn't cost extra and the majority of cell phone plans offer adequate minutes for a reasonable price, many people are opting to have their cell phone as their only phone. Another nice safety feature of cell phones is that even if you are out of minutes on your prepaid plan or over minutes on your contract, you can still always make 911 calls in case of an emergency. Many cell phone plans include free directory assistance as well. 

Don't Use Credit Cards

Even though you've worked all your life to build an excellent credit score, you really should avoid taking on new consumer debt during your post-retirement years. Switching to a cash or debit card only policy for purchases will help reduce your monthly bills so that you can stretch your income further. Keep your credit cards for legitimate uses only. If you do like to use credit cards in order to take advantage of reward programs, then pay off your balances every month so that they don't accrue interest. Treat credit card spending just as if you are spending cash, if you don't have the money in the bank to cover the bill, don't buy things on credit.

Share Vacation Expenses

It is natural to want to travel during your golden years and you've earned that privilege. However, expensive cruises and long overseas trips can decimate your savings quickly. Travel with friends or family members who can help you cover some of the expenses such as lodging. If you like to spend time at the beach, see if you can rent a vacation home with another couple instead of staying at a pricey hotel. Split your trips up so that you have plenty of time to save up enough money so you can have a good time without feeling guilty about spending too much money. It is also a good idea to book vacations as early as possible.

Use Senior Discounts

If you go to a store, a diner, or any other place that offers discounts to senior citizens, then take advantage of them. Some people pass up on these discounts because they make them feel "old" or they don't like revealing their true age. This is like throwing money away. Even if it is, only a small percentage off, senior citizen discounts save you money. If someone were going to sell you something for $5, would you pay $10 for it? No, of course you wouldn't. Not asking about senior discounts or turning them down is the same as paying for more for things than you really have to. Some places only offer discounts on certain days, so plan your schedule around discount times.

Review Your Monthly Bills

Every bit of money you can take off your monthly bills is more money in your pocket. For example, look at your cable bill carefully. Do you really watch all those channels? You can most likely switch to a basic plan that is less expensive. Be sure to turn off lights when you leave a room and unplug appliances that you don't use very often. It is also a good idea not to overindulge in heating and air condition. That doesn't mean you have to be uncomfortable, but don't keep your home ridiculously cold in the summer and sweltering during the winter. Utility costs are typically a large chunk of household expenses, so try to be conservative. 

Cut Clothing Expenses

Yes, you do want to have nice clothes when you go out, but you don't need to keep a wardrobe full of professional attire as you had when you were working. Mix up your wardrobe so that you have nice clothes for special occasions and some inexpensive clothes for just running around doing errands or doing chores around the house. Locate some second hand shops in good neighborhoods and you can save a lot of money on clothes, especially everyday wear. That doesn't mean you shouldn't buy new clothes at all, but allot money in your budget for clothing and stick to that fixed amount.


There really is no such thing as having too much money saved up for retirement. Retirement is just another phase of your life, not the end of it. Don't make the mistake of spending money as if you are going to die quickly. Many people live 20 years or more past their retirement age. Be a little frugal about spending money and it will help you stretch your retirement income a lot further. Sure, you can splurge occasionally, but makes sure it is a planned expense.


About the Author: Tony Standin is a personal finance expert with a passion for frugal living. His goal is to help others learn to plan, budget, and save for the future so they can experience the most comfortable retirement possible!

The Retirement Savings Crisis - Infographic

It's terrible how ill prepared most of us are for retirement. It's not like we don't know it's going to happen. We have more than half of our lives to get ready for it. Sadly, some of those that did prepare have had their savings taken out by the current economic problems. 

If the government really wanted to do something about this they should have a method to start the preparation for retirement when we are born. At birth we give children a Social Security card, why not a retirement account also. Why wait to start something important like that 25 years later? What's your take?

Image created by www.MastersinAccounting.info

Living on a Budget after Retirement

Frugal living is not easy even if you have a job. There are so many things to think of, to budget and to decide. Most of the time, a regular wage is not enough to cover the expenses you need to settle monthly. In fact, it has now become a big challenge to live decently. How much more if you are nearing your retirement age? 

For some people, retirement is never an issue especially if they have ample savings for their future. But for the majority whose salaries are good enough to let them survive each month, life after retirement is still hazy. Does this sounds familiar? Well then, here are a few tips to help you get through your retirement and live a frugal life.

Plan Ahead Where to Retire

Before your retirement period, it is essential to plan things ahead. Decide where you want to spend your retirement. Do you want to stay in your home? Or, are you planning to move in another place where costs of living are lower? The cost of living in each state and city varies. For example, if you are living in a big city like NYC, obviously, you need to spend more. 

If you want to live on a budget after retirement, find an area with cheap cost of living than your current place. Some cities have lower property taxes and housing rates. In addition, these areas might have lower personal and sales taxes. One good example of city with low-cost of living is Austin, Texas. In this city, the costs of housing, food and transportation remain cheap in comparison to other cities. 

Live in a Smaller Home

If you used to live in a 5-bedroom house, it’s about time to reconsider letting it go. At this age, chances are, your children are grown up and have their own family. Staying in a big house with only two of you living will really make you feel empty. And this is even worse, if you are alone. Additionally, huge home requires more maintenance, which means more budget and work needed. 

Downsize your retirement home. Look for a smaller house or an apartment that can accommodate you (and your partner if you have). Smaller living space consumes less energy. And, less energy used means low utility bills. Thus, this enables you to save money and minimize expenses. Above all, the best thing about small home is less maintenance. 

Invest Only on Essential Things

After retirement, you might be tempted to buy anything that catches your attention with your retirement fee. Resist temptation! This will likely drain your finances in no time. If you want to buy something, make sure it is of great use and you really need it. Don't buy a brand new couch just because it has a very nice shade. If you really need it, go for it. But if it’s not necessary, do not spend your money. 

When it comes to your health, you should never be stingy. Investing in medical devices, like medical guardian, is essential if there is a need for you to have it. Health must not be neglected at this stage. The most important thing to keep in mind is to be wise. 

So, these are just some tips on how to live on a budget after retirement. Remember, planning is a vital element to have a successful retirement.

This article is by Ashley O’connor.

7 Habits of Highly Successful Retirees

retirement (Photo credit: 401(K) 2013)

Planning for your retirement is something that all of us know we must do, but many of us put this kind of planning off, we avoid it as we think we've got stacks of time to worry about it. However, if you wish to have a successful retirement, you must take the time to make plans to ensure that it is everything you desire.

There are seven things that every successful retiree did prior to retiring that has made their retirement happy and secure. Surprisingly, they are not all financially related. Most of these retirees stated the following seven habits as the key to their happy retirement.

1. Savings Accounts

You want to have a bank account set aside just for your retirement. While you are still working, only make deposits in this account. When you retire, use this account to manage your finances. By changing your accounts when you retire, you have mentally created a new way to approach your money. 

2. Have Investments

Take advantage of every investment opportunity you can afford while you are working to guarantee an income when you retire. Make sure that your investments are diverse, and if at all possible, make sure that they have low maintenance fees. You want to make sure that your investments are funding your retirement and not paying high commissions to the brokers. 

3. Pay off Bills

Try to eliminate as many bills as possible before your retirement date. Review your current bills to determine if there are ways you can reduce them, such as downsizing cable options, getting rid of a land line phone and only opting for cell service, and moving credit card debt to low interest cards. Debt free living helps reduce retirement stress.

4. Downsize Your Life

You have spent your entire life working, now it is time for enjoyment. Look for ways to reduce your obligations so that you can only concentrate on your passions. If you have club memberships that you are no longer interest in, get rid of them. If you want a smaller home with less yard work, look for a new home before retiring. Have a pro-active approach to making your life your own and not filled with chores and duties. 

5. Take Advantage of Senior Discounts

There are so many different senior discount programs available, including those for necessities such as insurance policies and utilities, that it is foolish not to use them to your advantage. So many people avoid the “stigma” of senior citizen. The truth is, you need to embrace this title and take advantage of everything that it offers. 

6. Make Plans for Fun

One of the hardest things that retirees must face is waking up in the morning with nothing planned. After a lifetime of getting up and going to work, adapting to not having to be somewhere each morning can be difficult. Successful retirees always make sure they have at least one thing planned each day so that they are never sitting around with nothing to do. 

7. Volunteer

Retirees that offer their services to local charities, even for a few hours a week, seem to be the most successful. There are so many opportunities, from mentoring children to advising business owners, to accepting tickets at the gate of a state park, that any retiree can find a volunteer position that makes them happy.

The tricks to a successful and happy retirement are not as hard as you may have thought. As you can see, it just takes a little planning and a desire to be happy that will make your retirement the best time of your life.

This article was written by Perth Financial Adviser, Medhat Takla from Chambers Investment Planners. You can catch Medhat on Google+ and LinkedIn as well.