Next Generation Trust Services Notes 2014 Changes in Health Insurance, Medicare and Social Security Support Need for Stronger Retirement Savings
Published on February 20, 2014
Administrator of self-directed retirement plans says building up IRA investments is crucial as individuals must plan for longer life spans, higher medical bills and lower Social Security benefits. The baby boomers’ unprecedented burden on the Social Security program, Americans’ longer life spans, and recent changes in health insurance plans could all present big problems to current retirees and those nearing retirement.
The baby boomers’ unprecedented burden on the Social Security program, Americans’ longer life spans, and recent changes in health insurance plans could all present big problems to current retirees and those nearing retirement. The professionals at Next Generation Trust Services point to the very real prospect of increased medical expenses, potentially higher insurance costs, and a decrease in Social Security benefits over the long term; these factors all put pressure on individuals to ensure they will have enough to live on during their retirement years.
Jaime Raskulinecz, CEO of Next Generation, notes that those who are still working should do all they can to bolster their retirement plans now. “Changes in Social Security this year, coupled with shifts in the health care industry, could have a real affect on retirees’ ability to meet their health care costs in their later years. Therefore, now is the time to build up retirement savings to cover future expenses,” said Raskulinecz. “One way to do that more aggressively is to invest through a self-directed retirement plan.”
With self-directed plans, individuals make all their own investment decisions, usually based on assets they already know and understand. Self-directed plans are primarily for investments in alternative assets such as real estate, precious metals, hedge funds, private placements, limited partnership and much more, and may also include traditional investments (stocks, bonds and mutual funds).
Raskulinecz noted that early retirees in particular must pay careful attention to changes in Social Security or plan for how the Affordable Care Act may affect them. For example:
- Individuals who are under age 65 and collecting Social Security benefits, and those reaching full retirement age this year, should expect to see a decrease in their benefits above certain earning limits. Amounts will vary based on wage or salary income.
- The annual cost-of-living increase will be modest compared to previous years, only 1.5 percent in 2014.
- People who have not yet retired will see an upward adjustment in 2014 on the earning maximum by 3 percent (on what gets taxed for Social Security), so many workers will be paying more into the system.
- Older workers or early retirees who are not yet on Medicare and who switch health care plans may find premiums to be higher than anticipated, cutting into disposable income.
- Although there are many cost-savings to many individuals through the Affordable Care Act, certain Medicare plans may carry higher deductibles and co-pays.
A complete list of 2014 Social Security changes is available at http://www.ssa.gov/pressoffice/factsheets/colafacts2014.html.
“We cannot stress enough the importance for people of all ages to be more proactive about saving for retirement, especially given the uncertain future ahead in terms of government benefits,” said Raskulinecz. “For those who are already investing in nontraditional assets outside of their existing retirement plan, or who are knowledgeable and comfortable making their own retirement decisions, a self-directed IRA can help them build greater retirement wealth more effectively.”
For more information about self-directed retirement plans or to open an account, visit http://NextGenerationTrust.com or contact Next Generation Trust Services at (888) 857-80258 or Info@NextGenerationTrust.com.
About Next Generation Trust Services
Next Generation Trust Services (NGTS), headquartered in Roseland, New Jersey, is a professional third-party administrator of self-directed retirement plans. NGTS provides education, administrative support, and account maintenance to individuals interested in self-directing their retirement portfolios with a wide variety of investments that are not typically found in an IRA, such as real estate, precious metals, notes and mortgages, private placements, accounts receivables, limited partnerships, hedge funds, and much more. Next Generation Trust Services serves clients globally via its website, http://www.NextGenerationTrust.com. For more information on self-directing a retirement plan, call 888-857-8058 or e-mail Info(at)NextGenerationTrust(dot)com.
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