A recent report from the U.S. Senate Committee on Health, Education, Labor & Pensions found that only 14 percent of Americans believe they will have saved enough money to retire comfortably.
Understandably, a majority of Americans are still struggling to pay today’s bills and have put off saving for retirement. However, there are a few changes in 2014 that those who want to plan for retirement should heed moving forward:
Obamacare. Those planning to retire before the age of 65, when full Social Security benefits and Medicare kicks in, may have been concerned about finding affordable healthcare. However, under Obamacare, insurance companies cannot discriminate against you for a pre-existing health condition or your health history, so you may be able to find a plan that meets your needs at a price you can afford.
Social Security increases. In 2014, Social Security is getting a 1.5 percent cost of living adjustment. The average monthly benefit is estimated to increase from $1,275 to #1,294 in 2014.
Medicare Part D gap reduction. Thanks to Obamacare, the gap for those who spend more than $2,850 but less than $4,550 each year on prescription medicine under Medicare Part D will be reduced from 79 percent of the drug’s cost to 72 percent in 2014.
Saver’s tax credit. The income limit to qualify for the saver’s tax credit increases in 2014, by $1,000 for households to $60,000, by $750 for heads of households to $45,000, and by $500 to individuals to $30,000.
Tax increases. Taxes will increase slightly in 2014 for those earning between $113,700 and $117,000 annually. The maximum earnings taxable for Social Security will increase by $3,300 this year.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0041.