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It was a rude awakening to the 73-year-old former creative director.
But somehow I fully missed that Colorado taxes that money.
Colorado is one of states that still tax Social Security benefits, albeit with some exemptions.
For retirees like Helen, this means carefully considering how these taxes affect their retirement income and savings strategies.
Also seehow much money youll need to supplement Social Security in every state.
I knew about federal taxes on Social Security, but state taxes?
That was news to me, she said.
I had to recalibrate my budget and savings strategy to account for this additional tax burden.
Adapting the Retirement Plan
Helen realized she needed to make some adjustments and fast.
Heres what she did.
She increased her savings by working an extra year.
I really didnt want to, but hey, Helen said.
She also diversified her income streams so she didnt have to fully rely on Social Security.
I put even more into annuities, high-interest savings accounts and stocks to supplement my income, she said.
Thank goodness by daughter knows all about this stuff, or Id be up the creek.
While Helen ultimately decided to stay in Colorado, she did consider a move.
I thought about New Mexico, she said.
But in the end, moving costs money and my whole world is here.
It just wasnt worth it.
I had to be more mindful of my spending, she shared.
Which, to be honest, sucked.
I dont know… Im retired and have time on my hands, she said.
Might as well use it for good, I say!
However, Helen still wishes she wouldve been a little more informed.
But I cant kick myself too much about it.
You live, you learn, as they say.
Helen does have advice for people approaching retirement, though.
Do your homework, I beg of you, she said.
And ask your friends and family for help they might know more.
Especially people who are a little older than you and in the same area!
They are a wealth of information.
Heck, I want people to ask me!
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