This month we’re going to look at some financial perks of getting older. Discounts on nearly everything! There are discount programs through some Medicare supplement companies as well as Medicare Advantage companies. There are discounts from senior organizations like AARP and AMAC. There are also a ton of discounts without even joining anything. Your proof of age is all you need. I like my free donut with my coffee, personally.

Tax deductions! Folks age 65 and older are eligible for several extra tax deductions. You are eligible to claim a bigger standard deduction than younger taxpayers. The standard deduction is $1,300 more for each spouse who is age 65 or older, or $2,600 if both members of a married couple meet the age requirement. Individuals age 65 and older can increase their standard deduction by $1,650 in 2020.

Larger retirement account limits! Workers age 50 and older can defer paying income tax on as much as $26,000 that they contribute to a 401(k) plan, $6,500 more than younger workers. The IRA contribution limit is also $1,000 higher for workers 50 and older, or $7,000 in 2020. Also, no more early withdrawal penalty. Once you turn age 59-1/2, there’s no more 10% penalty to withdraw money from your IRA. And if you leave your job at age 55 or later, you can begin taking penalty-free 401(k) withdrawals from the account associated with the job you left. You should also probably think about rolling the funds out of the 401(k) and into your own IRA for more flexibility, control, and safe choices for your assets.

You can sign up for reduced Social Security payments as early as age 62 or claim the full amount you have earned at your full retirement age of 66 and 2 months to 67, depending on your birth year. If you delay claiming your payments past your full retirement age up until age 70, you will earn delayed retirement credits that will further boost your monthly benefit.

Usually, you will have the opportunity to have much less expensive health insurance. I can’t wait for this one!

So, enjoy being a Seasoned Citizen. You’ve earned it!