Many pre-retirees spend their time focusing on how to protect their savings, and generally envision their retirement of playing golf or tennis two to five times a week, the sunset walk on the beach and the local social club for evening spirits. Instead, many find themselves worried about the debt they've accumulated, caring for an elderly parent, and perhaps helping take care of their grandchildren.
What most folks don't know is with careful planning, there can be an efficient plan on when retirees want to take social security, where they want to reside for their retirement, and when to downgrade your house or begin spending down their assets. As a matter of fact, an increase in Modified Adjusted Gross Income during retirement can increase Medicare premiums. The metric used to determine Medicare premium pricing is known as Medicare means testing. Bottom line: higher earning retirees will pay higher premiums for Medicare than lower earning retirees.
In conclusion, it's important that pre-retirees carefully work with a financial professional that can help them identify their needs, and develop a plan that will help maximize their retirement income strategy.