Retirement eNews

1) LIFE EXPECTANCY REACHES RECORD HIGH

Babies born in the U.S. can expect to live an average of 77.9 years, according to a recent report from the Centers for Disease Control. But your own life expectancy could well be higher.

That’s because the longer you can avoid (or survive) calamities that knock off less lucky folks, the longer you’re likely to continue living. Statistics say, for example, that a 36-year-old should reach age 79, while a 75-year-old should live to 85.

Of course, these numbers are averages — which means the odds of living even longer are 50-50. It adds up to a potentially long, long retirement. To make it a more comfortable one, you can turn good intentions into a plan with “Your Retirement Road Map” at: retirement.unionplus.org/retirement-goals/roadmap-tool.cfm 

2) REBALANCE INVESTMENTS AT THE END OF A BUMPY YEAR

The stock market hit a record high this year too, but it wasn’t exactly a carefree zoom to the top. In fact, your portfolio probably got a real shakeup. Much of your money may have piled up in a market segment that’s now ripe for a fall, while there’s too little in another sector that could be ready to grow.

Now’s a good time to restore your investment mix to its desired balance. If you don’t have a target to aim for, check out the excellent guide to developing an asset allocation strategy at:

http://partners.leadfusion.com/tools/unionplus/asset_ed01/tool.fcs

3) DID YOU KNOW A DELAY IN ENROLLING IN MEDICARE CAN COST YOU?

Unless you have employer coverage, it’s important to enroll for Medicare during your Initial Enrollment Period (IEP), which extends for three months on either side of your 65th birthday. For instance, if you’ll be 65 in May, you can enroll as soon as February or as late as August. The sooner you enroll, the sooner your coverage starts.

If you miss your IEP:

• You can sign up for Medicare Part B* during the next general enrollment period (January 1 – March 31). Your premium will increase 10% for each 12-month period that you could have had Part B but didn’t take it.
  
  
• You can sign up for Medicare Part D* during its general enrollment period (see next story). Every month you delay enrolling will increase your monthly Part D premium by 1% of the average national premium amount.

These penalties don’t affect people who passed up their IEP because they were covered by employer health insurance. For more information, call 1-800-772-1213 or go to: www.medicare.gov

* Medicare Part B covers doctors’ services; Part D covers prescription drugs. Most people don’t have to pay for Part A, which covers hospital care.

4) NEED TO CHOOSE (OR CHANGE) A MEDICARE PART D PLAN? ACT FAST!

From November 15 to December 31, any eligible person can enroll or change their coverage in Medicare Part D. For more details, see: www.medicare.gov/pdphome.asp

To compare your Part D prescription plan choices, go to: www.medicare.gov/MPDPF/Home.asp 

5) DO YOU KNOW WHO YOUR HEIRS ARE?

Were there births, deaths, marriages, or divorces among your loved ones in 2007? Before the new year begins, be sure to update the beneficiary designations on your retirement accounts and life insurance policies.

Since these designations override instructions in your will, it’s important to keep them current. (Don’t forget to name backups, in case the primary beneficiaries die before you.)

Even if there haven’t been any recent life events in your family, it’s a good idea to review your beneficiaries periodically. Check with your retirement plan administrator or insurance provider, so you can be confident that your accounts and policies are absolutely heir-tight.

6) SOCIAL SECURITY BENEFITS TO INCREASE IN 2008

Social Security checks will be a little plumper next year, thanks to a 2.3% cost of living increase. The average retiree’s monthly payment will go up to $1,079, while couples who are both eligible for benefits will typically receive $1,761 a month.

Copyright (C) 2007 Union Privilege. All rights reserved.
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