In each day of calendar 2011, an average of 7,000 persons will reach the age of 65. This is the first wave of Baby Boomers – those born in the years 1946 to 1964. According to a survey conducted by AARP in December, 2010, 31% of those Boomers reaching age 65 in 2011 are still working, and 40% of them do not intend to ever retire. This is a bit of a shift from prior generations, where 65 was the magic year for retirement. For those fellow Sun City Boomers in this first wave, whether you plan to work or retire, there is a list of “to do’s” that need to get done. As you can probably tell, I am among this first wave and have particular interest in making sure I complete the list. Here is where I can use your help in making sure I covered all the major items in the list. So don’t forget to write and let me know if I missed a few critical “to do’s.”
First, don’t forget to apply for the Senior Citizen property tax exemption on your residence and, if you qualify, the Senior Assessment Freeze. Just contact your county assessor for the forms. You can file for the exemption anytime during the calendar year you reach 65. This will save you some property taxes the following year.
Next, about 3 months prior to 65, contact the Social Security Administration to apply for Medicare – Part A (hospital coverage). This is recommended even if you aren’t retiring and still have company medical insurance coverage. Your company insurance will remain the primary coverage until you retire, and Medicare will be secondary. You should also consider Medicare – Part B (doctor visits) and Part D (prescription drugs). If you are retiring, also check into supplemental insurance. You won’t have to worry about what supplemental insurance is available, because you will receive about 100 different offers in the mail a few months before you reach 65. Of course, you also need to consider when to start collecting your social security checks and retirement fund distributions. (See the last Frugal Forum column where we discussed this in detail.)
Another benefit for seniors in Illinois is the reduction in transportation fares. For those with birthdays earlier in the year, you could travel free on Metra and the CTA until September, but now you have to pay half the regular fare (unless your income level qualifies you to travel free). You can obtain the reduced fare application online and submit it 3 weeks before you reach 65.
When filing your Federal and state income tax returns, you will be entitled to an extra exemption for having reached 65. Don’t forget to check the additional box on the tax return.
So, is there anything I missed that should be included on this list? Let me know so I can share it in the next Frugal Forum.
Keep those letters coming, folks. Send your ideas to: The Frugal Forum, P.O. Box 693, Huntley, IL 60142 or by email to: thefrugalforum@gmail.com.
