If you’re an older worker and decide to file for Social Security before you reach full retirement age, you need to account for the impact that income will have on your benefits. That’s because your benefits would be reduced temporarily and up to 85% of your benefits would be taxed if your combined income exceeds a certain threshold.
More income can also push you into a higher tax bracket and that can trigger Medicare surcharges.
For more details read this article at Kipplinger.
And what about longevity? Non-smoking 65-year-old women have a 50% chance of reaching the age of 88, while their male counterparts have the same chance of living for 20 more years, says Kipplinger.com
So you should get long-term health care coverage, plan for incapacity and avoid probate and estate plan to lessen your tax burden. Kipplinger suggests, “Estate planning techniques such as credit shelter trusts, giving assets away during your life, or even changing the state in which you live, can help minimize the impact of these taxes.”