Ask Terry Questions Retired at 62

Retired at 62

By Terry Savage on October 21, 2013 | Financial Planning / Retirement

Hi Terry,
I’m 62yrs old, retired, collecting a small pension and social security. Any suggestion on tax shelters? I don’t want to pay anymore taxes (than I have to) to the feds. FYI….I do not own a home and I have about $15K in a standard IRA. Thank you…Ruth

SAVAGE SAYS:You don’t need a tax shelter, you need more income!  At your age, you’ll want to bring in some part-time income — from anything such as temp office or sales work to baby-sitting for a working mom.  It’s a shame you collected Social Security at such a young age, because that makes a permanent dent in your future income.  But if you live till your mid-eighties, which is likely, inflation and uncovered health-care costs will dig into your standard of living, as you can expent rising rent and utilities to outstrip the COLA in your Social Security (and in your pension if there is a cost-of-living increase).  So my best advice is to figure out how to supplement your income now, while you can — so you can save a bit more for your expected longevity.



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