5 Surprising Facts to Know About Retirement
Check out some often-overlooked retirement planning facts of life that everyone should be aware of.


You’ve worked the majority of your life. And, you deserve to have many blissful years ahead, which is why it’s so important to have a plan. The first step is education: There are many facts you might not know about retirement, from how your Social Security benefit can be taxed to how you should factor in travel expenses.
Here are five important facts to know about retirement.
Your Social Security Benefit Can be Taxed
Once you qualify for benefits, you will probably feel a little more confident, because you can rely on a monthly Social Security check for the rest of your life. And while this is true, you might be surprised by how much of your benefit you actually get to keep.

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.
Your Social Security benefit can be taxed — up to 85% of it, in fact. If your provisional income as an individual is over $34,000 or over $44,000 as a couple, up to 85% of your benefit is taxable. And, you only have to receive $25,000 in provisional income as an individual or $32,000 as a couple for half of your benefit to be taxed. On top of this, 13 states impose taxes on some or all Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia.
There’s No Age Limit for Contributing to a Roth IRA
While you cannot contribute to a traditional IRA after the age of 70½, you can contribute earned income to a Roth IRA for the rest of your life. You also never have to take required minimum distributions from a Roth IRA. For 2019, the Roth IRA contribution limit is $6,000 for people under 50 years old, and $7,000 for people 50 years of age and over. Remember that after-tax dollars are contributed to a Roth, and qualified distributions are tax-free.
Americans 65 and Older Can Take a Larger Tax Deduction
You don’t have to be retired to take advantage of a slightly larger standard deduction. Once you turn 65, your standard deduction as an individual increases by $1,300 and for a couple filing jointly where both members are 65 or older, it increases by $2,600 for the 2019 tax year. If you’re choosing between itemizing your taxes and taking the standard deduction, this is something to keep in mind.
Retirees Don’t Necessarily Take Travel Expenses into Account
Many people look forward to traveling when they retire. But, according to a Merrill Lynch survey, about two-thirds of people 50 and older say they haven’t set aside funds for a trip. This seems silly when we consider how much time we spend planning where we’ll go on vacation and what we’ll do there. After all, there are more expenses in retirement to plan for than just food and shelter.
About One-Third of Retirees Who Live Independently Also Live Alone
Older adults who live outside of a nursing home or hospital are said to live independently. Almost a third of these adults live alone, according to a study from the Institute on Aging. The study found that the older people get, the more likely they are to live alone. And women are twice as likely as older men to live alone. This fact has financial implications, considering the high cost of and likelihood of needing long-term care.
The Takeaway: Stay Informed and Make a Plan
They say that knowledge is power, and when it comes to retirement this can be especially true. Knowing what your expenses and your income will be are the first steps in creating a comprehensive retirement plan. You don’t need to be an expert on all-things retirement, a financial professional can help guide you through this new stage of life.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Greg O'Donnell is the CEO and founder of O'Donnell Financial Group (www.ODonnellFinancialGroup.com). His mission over the course of three decades has been to guide people to pursue and maintain a healthy financial life plan that accomplishes their goals.
-
Retire in Finland and Live the Nordic Dream
Here's how to retire in Finland as a US retiree. It's ideal for those who value natural beauty, low crime and good healthcare.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?
If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?
If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or Relocate
Homeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and Friends
What starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
What the HECM? Combine It With a QLAC and See What Happens
Combining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.
-
721 UPREIT DSTs: Real Estate Investing Expert Explores the Hidden Risks
Potential investors need to understand the crucial distinction between a REIT's option to buy a Delaware statutory trust's property and its obligation.
-
I'm an Insurance Expert: Yes, You Need Life Insurance Even if the Kids Are Grown and the House Is Paid Off
Life insurance isn't about you. It's about providing for loved ones and covering expenses after you're gone. Here are five key reasons to have it.
-
My Professional Advice: When It Comes to Money, You Do You
This is how embracing the 'letting others be' and 'learning to surrender' mindsets can improve your relationship with money.
-
Direct Indexing Expert Explains How It Can Be a Smarter Way to Invest
Direct indexing provides a more efficient approach to investing that can boost after-tax returns, but is it right for you?