Is illness or injury in your plan?
When was the last time you made plans to get sick? Probably never. For most people, illness or injury comes unexpectedly and can be very costly. Make sure you have a plan in place to cover health expenses in retirement.
Retirees over the age of 65 can take advantage of Medicare but will still need to have additional funds in place to cover what Medicare will not.
According to a study done by the Employee Benefits Research Institute (EBRI), a healthy couple turning 65 in 2018 would need to save $511,000 to be 90 percent certain they could cover all out-of-pocket healthcare expenses. That number could rise, as healthcare costs are rising faster than inflation.
Everyone's case is unique. It is important to consider:
- Medicare parts A, B, C and D — which will you want?
- A supplemental medical insurance policy — to cover things Medicare does not, such as vision, dental, hearing aids, etc.
- Long-term care insurance — will you need it?
Don't let these healthcare costs sneak up on you. Make sure to include this important category in budgeting for retirement.
Age 70 and still working? You have options!
If you are age 70 and have at least 20 years of creditable service, you can receive monthly benefits and continue to work. For members in an elected office, you must be age 55 with at least 20 years of creditable service.
Members who make this election cannot earn additional service credit but may continue to contribute to their Annuity Savings Accounts. Aside from possible increases for cost of living, the benefit amount will remain the same. Members choosing this option will not receive a supplemental benefit when they terminate covered employment.
Your money is coming in faster...what are you doing with it?
Thanks to new technology, your employer can now submit your Annuity Savings Account contributions each payroll. In the past, this was done quarterly.
Submitting contributions more often gives you greater control and opportunity to benefit from your investments. To learn more about key investment factors, like asset allocation and diversification, click
here.
Get the gist of INPRS and the law
INPRS must follow the laws put in place by the Indiana General Assembly and signed by the governor.
The Indiana General Assembly is the legislative branch of the state of Indiana. It is made up of the Indiana House of Representatives and the Indiana Senate.
The House and the Senate can initiate legislation. Bills are debated and passed separately but must be passed by both before they can be submitted to the governor.
Before a bill becomes a law, the governor must sign the bill or let it become law without signature. A bill is effective on July 1 of the year it is enacted unless a different effective date is specified in the bill.
INPRS is a qualified governmental pension plan governed under section 401(a) of the Internal Revenue Code. We are required to follow applicable federal laws and the laws put in place by the Indiana General Assembly pertaining to the administration of the seven funds we administer.
For more information on the Indiana General Assembly, please visit their Web site at
http://www.in.gov/legislative/index.htm.
Q: When should I start thinking about planning for retirement?
A: Now! Whether you're just beginning your working life or nearing retirement, when it comes to retirement planning, there is no such thing as too early.
If you wait too long to plan you may not be able to retire as comfortably as you like. Make sure you understand your benefit with us, as well as any other benefits to which you may be entitled. You may wish to speak with a financial planner to ensure you are on the right track to meet your retirement goals.
Q: I have a condition that may prevent me from managing my account. Is a Power of Attorney an option?
A: Yes. In order for a member to designate an individual to act on his or her behalf, the member must name an "attorney in fact."
This can be done through a Power of Attorney. In order for the attorney in fact to act on behalf of the member, a copy of the Power of Attorney must be in the member's file. INPRS also allows members to designate an attorney in fact only for matters dealing with the member's INPRS account. To learn more, click
here.
