What Are the Issues that you need to consider before Claiming Social Security, Medicare, and Insurance?
When Should I Claim Social Security? -
Social Security is Longevity Insurance; it pays as long as you live. While you may claim benefits as soon as you reach age 62, many people wait until Normal Retirement Age, now between age 65 and 67 depending on the year you were born. If you claim before Normal Retirement Age, you will have a reduction in your monthly payment and by deferring social security, the Social Security Administration will increase your monthly payment by 8% per year up to age 70. We can calculate various scenarios to determine the best time for you to claim benefits.
And Medicare-
Unless you continue to work for a company with 20 or more covered employees, you are required to claim Medicare at age 65. If you don’t, you’ll be penalized. And you’ll need to learn your alphabet: Parts A, B, C, D.
Do I need supplemental insurance? -
The good news is that most of the policies are standardized, but picking the right coverage will help you match the proper premiums against an acceptable amount of out-of-pocket costs. So-called Medigap or supplemental insurance can help you budget your estimated health care costs. Medicare covers lots of health costs, but not all. Knowing what Medicare covers and what supplemental insurance covers is important when determining which policies are best.
Planning for higher health costs -
If history repeats, health care costs will continue to rise and once you stop working, you’ll have less ability to offset these higher costs. That’s why it’s critical to consider your options at the start of your retirement journey.
Will I need help when i’m older? -
As you age you may need some additional help - help with your money, help with activities of daily living, and ultimately you may need a higher level of care. Should you purchase long-term care insurance or just plan for higher costs? The answers are not simple, especially if you have waited to purchase long-term care insurance.