Milestones in your future
Baby Boomer's Financial Timeline
by Debra Karplus
7 Social Security Sins
Finding Senior Discounts
Senior Discounts for the 50-Plus Crowd
According to the Administration of Aging (AOA), in their most recent published data, in 2010, there were approximately sixty million people aged 45 to 63. That large number of people born between 1946 and in 1964, the post-World War II population explosion, is called baby boomers. That was approximately 22% of the American population nationwide at that time. Today, the youngest of the baby boomers is edging in on their 50s; the oldest are approaching their eighth decade. There are several notable age milestones for baby boomers to be aware of and plan for.
When you were growing up, turning 13 transformed you into a teenager. At 16 years old, you were old enough to drive. The next major milestone for you was being able to vote and enlist in the military. But today's baby boomers have their own set of exciting rites of passage to look forward to and to embrace that make life even better than it already is.
Reaping the benefits of aging begins at age 50.
The American Association of Retired Persons (AARP), a huge organization and lobby group for older Americans, will welcome you into their membership by the time you turn 50. For only a $16 annual membership, which is cheaper per year if you join for three or five years at a time, there are numerous benefits to members that will quickly make the membership worth your while. Members can enjoy discounts on travel, entertainment, health, financial, and much more. There's no obvious reason not to join AARP once you turn 50.
The Osher Lifelong Learning Institute (OLLI) is located in many college towns and other communities. These college-type classes, study groups, lectures, group travel and more are for people over 50, but there are no grades, required attendance, dorms, or hangovers, just learning for the sake of learning. OLLI memberships typically offer an array of useful benefits. OLLI at the University of Illinois, for example, with its $150 annual membership, includes a city bus pass, which if bought individually is $72 per year.
59 1/2 is no longer just a mirage for baby boomers.
When you started saving for retirement with an Individual Retirement Account (IRA) or a Roth IRA, the age 59 1/2 seemed light years away. Then one day you woke up and realized that it was your half birthday, that magical age between 59 and 60 years old. Most adults don'rt give much thought to half birthdays, but this one is quite significant. The Internal Revenue Service (IRS) has specific guidelines regarding how and when you can withdraw money from your IRA. The Roth IRA tends to be much more liberal pertaining to withdrawals. Presumably your financial broker or places where you have investments, such as Fidelity Investments, can help you make financial decisions about making withdrawals.
Social security eligibility begins at age 62.
The Social Security Administration (SSA) allows you to apply for social security benefits a few months before you turn 62. Their website walks you through all the ways you can complete the application process, including online, by phone, or in person. Many financial professionals will advise and encourage you to wait as long as possible to begin collecting Social Security benefits, but this decision should be based on your current health and expected longevity, your financial situation, and other pensions and ways you may have provided for your golden years. Request a few opinions from knowledgeable experts before applying for benefits. It may be to your advantage to wait and overall receive significantly larger monthly payments from the SSA.
Amtrak considers you to be a senior at age 62 also. Expect a 15% discount on your travel. This may be the time to take that cross country train trip you had always fantasized about. Check www.amtrak.com to learn more about what Amtrak has to offer to their senior passengers.
The sky is the limit at 65.
Most airlines offer enticing discounts to seniors, people over 65 years old. It varies from airline to airline. Next time you are booking a flight online, click on the senior rate to see what kind of discount you might look forward to when you turn 65.
Discounts for seniors exist in some other places that you might not expect. Movie theaters typically offer senior discounts that often are even lower than matinee admission. The people working at these ticket counters often do not know what age is considered "senior." If you are over 30, you probably look old to them! Your auto repair shop may have lower prices for their senior customers. Your appliance repairman or handyman may offer senior discounts, too. It always pays to ask.
Debra is an occupational therapist, accountant, teacher and freelance writer. She is a writer for Advance for Occupational Therapy Practitioners. She also writes for Grand Magazine, has some items (fiction and non fiction) selling on Amazon.com (kindle) and has written several articles for freelancewriting.com. Learn more about her at DebraKarplus.blogspot.com.
Take the Next Step:
- Subscribe to our weekly After 50 Finances newsletter. Each issue features articles and tips that address today's financial challenges faced by those of us in the 50+ age bracket.
- Visit us on Pinterest for even more money-saving tips for Baby Boomers on a budget.
- See this week's Baby Boomers tools for helping you live better for less.
Share your thoughts about this article with the editor.
Also in Baby Boomers
- Estate planning in a second marriage
- Using credit cards once you reach retirement
- The pros and cons of becoming a landlord
- Finding an inheritance
- 25th anniversary party ideas
- Build a career bridge to a secure retirement
- Financial tips when nearing retirement Video
- 6 simple steps to ace a life insurance physical
- Are boomers too fat to be healthy?
- Why you should master your debt before you retire
- 10 commandments of retirement planning
- IRA required minimum distribution calculator
- Retirement shortfall calculator
- Life expectancy calculator
- Social security income calculator
- More retirement planning calculators