From senior discounts to tax breaks, aging can benefit your bottom line
Published by: AARP
Getting older has its advantages, especially when it comes to your bank account. That’s because, at a certain age, deals abound for everything from travel to education.
1. Cheaper auto insurance
It’s true that as you age, your auto insurance premiums rise, but if you are in your 50s or 60s, you may see some of the best savings of your lifetime, according to data from Progressive. Drivers in their 50s and 60s tend to have lower rates because they have decades of experience and their vision is intact. Rates tend to rise again at age 75.
2. Travel deals
Many hotels offer senior travelers discounts on lodging. You can save at Choice Hotels, Best Western, and IHG Hotels & Resorts to name a few. The same goes for flights. Airlines, including Delta and United, offer discounts for older adults, though they’re only available in certain markets.
3. Retail discounts
From clothing to haircuts, retailers offer discounts to their older patrons. Kohl’s has a 15 percent discount every Wednesday for its 60-plus customers. At Rite Aid, customers 65 and older can earn five times rewards points on the first Wednesday of every month. Pep Boys and Michaels offer people 55-plus a 10 percent discount with a valid ID. If you are a member of a discount program such as AARP, you can get deals at retailers and service providers around the country. Supermarkets typically pick one day per week to extend a deal to their older shoppers. The discounts range from 5 percent to 10 percent off your grocery bill or select items.
4. Tax breaks
When you reach 50, there are several tax breaks aimed at you, including stepped-up contributions to your IRA, employer-sponsored Health Savings Accounts (HSA) and 401(K)s. The breaks allow you to pay less in taxes and catch up on retirement savings if you have fallen behind.
5. Penalty-free withdrawals
Known in the world of taxes as the Rule of 55, this IRS provision lets workers 55 and older who leave their job take distributions from their employer-sponsored retirement plan without facing the 10 percent early withdrawal penalty. Outside that, you have to wait until 59-and-a-half to begin withdrawing from your retirement plan penalty-free.
6. Social Security payments
As early as 62, you can begin receiving monthly Social Security benefits although you won’t be entitled to full benefits until you reach your full retirement age. The longer you wait to begin collecting, the more you’ll receive. If you delay until age 70, you can receive up to 76 percent more.
7. Free transportation
Whether you live in a city or a more rural setting, there are state, local, and nonprofit programs available to give older adults free rides. For example, Project CART (Community Arranged Resident Transportation) in New York City offers free rides to residents 60 and older pretty much everywhere, including medical appointments and hospitals, senior centers, shopping centers, museums, places of worship, theaters, and cultural events.
Elder Helpers, one of the biggest volunteer networks in the country aimed at helping older adults, offers free rides courtesy of its more than 10,000 volunteers.
8. Low- and no-cost education
From state colleges to private institutions, lots of free classes are available for older adults whether you want to hone a skill or pick up a new one. Plus, you don’t have to worry about grades. Many colleges and universities will let you audit a class.
9. Workouts on the cheap
Depending on your Medicare plan, individuals 65 and older can get access to free gym memberships and online classes through the SilverSneakers plan.
10. Reduced-cost mobile phone service
All of the major wireless carriers, including T-Mobile, Verizon, and AT&T, offer discounts for older adults. If you are 55-plus, you can save as much as 50 percent with T-Mobile’s unlimited Essentials 55 plan. At Verizon, adults 55 and over can save up to $42 a month when they switch to its Senior Phone plan. AT&T charges adults 55-plus $40 a month per line for two lines with unlimited talk, text, and data. If you have an AARP membership, the savings are even more.
11. Meals and entertainment deals
Many restaurants offer buy-one-get-one-free deals or early bird specials, or they take a percentage off your bill. The age the discounts kick in generally ranges from 50 to 60. Movie theater chains offer discount days, including at select Cinemark Theatres and Showcase Cinemas.