Welcome to Retirement Scan, our daily roundup of retirement news.
Seniors who are working abroad should be on Medicare, especially if they plan on moving back to the U.S. permanently or occasionally, according to an article from CNBC. They are advised to sign up during the initial enrollment period that starts three months before their 65th birthday, unless they have filed for Social Security. Seniors who have qualifying health coverage may sign up after the period without facing the late-enrollment penalty, but they are required to present proof of coverage such as tax returns, medical statements and pay stubs.
Workers saving for retirement are advised to build a cash buffer to mitigate the impact of volatile markets, according to an article in Barron’s. They should also consider a downturn an opportunity to look for new investment options and review their exposure to stocks, an expert says. “Don’t panic; do your homework and seriously consider seeking assistance from a professional financial advisor,” according to the Transamerica Center for Retirement Studies expert.
Lawmakers are considering legislation that would enable seniors to continue funding a tax-advantaged health savings accounts even after enrolling in Medicare, according to a MarketWatch article. However, under the bill, they could no longer tap into their HSAs to cover their Medicare Part B premiums. “One of the best things about HSAs are that someone can diligently save in it for 10 to 15 years before retirement, and bank a lot of that money to pay for Part B,” an expert says.
Employees who are already retired should defer Social Security to ensure they will live comfortably in retirement, according to an article from Yahoo Finance. They should also have a retirement budget, talks about their plans with their loved ones and shift to safer investments. It also pays to develop a tax-efficient withdrawal strategy to minimize the tax bite. “Income tax is typically among the largest expenses for retirees in the mid-market affluent space and is typically the one budget item that they do not mind cutting,” an expert says.
