- ORIGINAL NEWS
As Americans reach ‘peak 65,’ here’s what to know when planning for Medicare, Social Security
- SUMMARY
As the “silver tsunami” of baby boomers approaches retirement, navigating your financial future becomes crucial.
Medicare and Social Security decisions made at age 65 will significantly impact your well-being.
Upon turning 65, you are eligible for Medicare coverage.
You can choose “original” Medicare (Parts A, B, and optional Part D or medigap) or Medicare Advantage plans, which offer additional coverage like prescription drugs.
Original Medicare provides a wider provider network, while Medicare Advantage may have lower monthly premiums.
Consider your circumstances and additional expenses to make an informed choice.
Regarding Social Security, your full retirement age depends on your birth year.
Claiming early may reduce your benefits by up to 30%, while delaying until age 70 can increase them by 8% annually.
While higher Social Security benefits are generally preferable, many claim early due to financial necessity or reduced earnings.
Even delaying benefits for a few months can increase your lifetime income.
It’s crucial to note that healthcare costs are projected to rise substantially in the future.
Medicare costs for a 65-year-old in 2024 could increase by over $900 per month by 2054, assuming a conservative 6% inflation rate.
Healthcare costs influence your Medicare and Social Security decisions, so consider your future needs and expenses carefully.
Remember, these decisions can impact your financial well-being throughout retirement.
Explore your options thoroughly, weigh the pros and cons, and consult with financial experts if needed to make informed choices that will secure your financial future.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“Medicare Advantage enrollees have no supplemental coverage, they should set aside more money for surprise out-of-pocket costs, Carson said.”
“The monthly outlay for beneficiaries covered by Medicare Advantage is much lower, according to J.P. Morgan’s estimates”
Negative
“More than 11,200 baby boomers are expected to turn 65 every day from now through 2027, a phase that has been dubbed “peak 65.””
“A so-called three-legged stool of retirement planning — employer pensions, personal savings and Social Security — has largely gone by the wayside as many private-sector employees no longer have traditional pensions that may provide income throughout retirement”