The classic retirement fantasy is simple: Work until 65, get your gold watch and live happily ever after on your pension. Reality is a bit different.
Here are three things no one tells you about retirement.
First, Medicare isn’t free. You can and should enroll at 65, but brace yourself for premiums and co-pays. It also doesn’t cover everything, notably long-term care. Buying a medigap supplemental insurance policy can help with out-of-pocket costs. (See also 11 Common Medicare Mistakes to Avoid for more.)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Second, you might owe taxes on Social Security. The feds can tax up to 85% of benefits, depending on your income. Thirteen states also tax Social Security. When budgeting for retirement, take income taxes into account. (See also 10 Things You Need to Know About Social Security for more.)
Third, some senior discounts can stink. Take hotels. While a senior rate might beat the standard rate, you could do better simply by booking on a discount travel site such as Hotels.com. A triple-A member discount might beat the senior rate, too. It pays to check. (See also 5 Senior Discounts to Avoid for more.)
These are just a few of the surprises that retirees might encounter. Check out more things no one tells you about retirement to see the rest.
-
Visa Is the Worst Dow Stock Wednesday. Here's WhyVisa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
-
Another Analyst Moves to the Sidelines on Tesla Stock After EarningsTesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
-
What Does Medicare Not Cover? Seven Things You Should KnowHealthy Living on a Budget Medicare Part A and Part B leave gaps in your health care coverage. But Medicare Advantage has problems, too.
-
13 Smart Estate Planning Movesretirement Follow this estate planning checklist for you (and your heirs) to hold on to more of your hard-earned money.
-
Should You Rent in Retirement?Making Your Money Last Renting isn't right for all retirees, but it does offer flexibility and it frees up cash.
-
6 RMD Changes We Could See This YearMaking Your Money Last Congress is considering two bills that would make major changes to required minimum distributions. Could your RMDs be affected?
-
A Kiplinger-ATHENE Poll: Retirees Are Worried About MoneyMaking Your Money Last Concerns about recession, inflation and health care costs weigh on retirees and near retirees.
-
The Retiree's Guide to Going Back to WorkMaking Your Money Last Inflation and a bear market have prompted some retirees to change course.
-
Does an Annuity Belong in a 401(k)?Making Your Money Last Unlike pensions, 401(k)s place the risk of outliving savings squarely on the retiree's shoulders. Find out what's right for you.
-
Social Security: 8 Must-Know Facts About Your BenefitsMaking Your Money Last What you don't understand about Social Security could cost you. Here are key facts worth knowing.
