How part-time work in retirement can affect Social Security taxes and Medicare costs

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How part-time work in retirement can affect Social Security taxes and Medicare costs
Older workers who opt to file for Social Security before full retirement age are advised to account for the impact of their wage income on their benefits, according to this article on CNBC. That's because their benefits would be reduced temporarily and up to 85% of their benefits will be taxed if their combined income exceeds a certain threshold. Greater income may also push them to a higher tax bracket, which could mean surcharges for Medicare. "If you're a professional and you continue to work, you can be subject to the surcharges pretty easily. It's good to at least anticipate it if it's unavoidable," says an expert.

Are clients ready for longevity? 4 steps to take now
Non-smoking 65-year-old women have a 50% chance of reaching the age of 88, while their male counterparts have the same chance of living for 20 more years, writes an expert for Kiplinger. Those who are likely to live longer are advised to get long-term care coverage, plan for incapacity and avoid probate, writes the expert, adding that they should also engage in estate planning for tax purposes. "Estate planning techniques such as credit shelter trusts, giving assets away during your life, or even changing the state in which you live, can help minimize the impact of these taxes."

Young Americans expect to retire by 60 even as debt levels pile up
A study by Charles Schwab has found that millennials believe that can retire as soon as they reach the age of 60 despite incurring sizeable debt and having limited knowledge about debt management, according to this article on Fox Business. Millennials had saved $1,628 on average but face an average of $8,003 in debt, the study found. Young Americans also showed a “troubling lack of knowledge” about differentiating between good and bad debt, as well as student loans and mortgages, says Charles Schwab.

Student loans after 40: Is your retirement doomed?
The number of older Americans going back to school is increasing, and this is a major financial move for them, according to this article on MarketWatch. That's because they have to put their career on the back burner and halt saving for retirement. “If you’re going back to earn more money or further your career, you have to make sure it makes financial sense,” says a financial advisor.

This article originally appeared in Financial Planning.
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Social Security Retirement income Retirement readiness Longevity strategies Student loan debt