Retiring in 2022? Ask Yourself These 3 Questions First | Personal-finance

If you had planned to sign up for Social Security when you retire, you might want to rethink that. Each month you delay, Social Security increases your checks until you reach the maximum benefit at age 70. Those who live to be 80 or older generally get more money by delaying benefits than by enrolling early.

But registering early might still be the right decision for you. It all comes down to planning. If you’ve accounted for slightly smaller Social Security checks in your retirement plan, you may not have a problem. But if you were too optimistic in your Social Security estimates, you might want to either rethink your withdrawal strategy or delay your retirement a little longer to give yourself more time to save.

3. Have I budgeted enough for health care?

Most seniors will be able to rely on Medicare to cover some of their health care expenses once they reach age 65. But Medicare has many gaps in its coverage, so you still need your own money which is earmarked for healthcare costs.

The average 65-year-old couple retiring in 2021 would need about $300,000 to cover their medical costs, according to Fidelity — and that’s assuming they don’t need special services, like long-term care. Those retiring in 2022 or later will likely need more than that, as inflation continues to drive up all costs, including medical bills.


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