Social Security was designed to supplement only pensions and retirement savings. But for many, that's no longer the case. Among beneficiaries 65 and older, 1 out of 5 married couples — and 2 out of 5 singles — receive at least 90 percent of their income from the program, according to the Social Security Administration. Living mostly on Social Security alone can be difficult. But here are tips for those near or in retirement who may find themselves in that situation. Delay Social Security Of course, if you're ailing and not likely to live many years in retirement, you're better off taking Social Security benefits early. But if you're healthy and have other resources to live off, it pays to wait. Your monthly payment will be 76 percent higher if you wait to start benefits at 70 rather than 62, the earliest possible age. By staying in your job longer or finding part-time work in retirement, you can earn a paycheck that can help you postpone drawing on Social Security benefits early. Do a Social Security do-over What if you took Social Security early and now regret it? It may not be too late. If you only recently filed for Social Security, you have up to 12 months to withdraw your application for a do-over. You must repay — without interest — all the benefits you received up to that point. But from then on, your benefit can grow until you're ready to file again. If the 12-month deadline has passed, you have another chance to boost your benefit. Once you reach your full retirement age — currently 66 — you can suspend your monthly payments without having to repay the money you already received. Thereafter, each year your payments are in suspension — until 70 — you will earn extra retirement credits that will enlarge your benefit by up to 8 percent annually. Eliminate debt If you are going to live mostly on Social Security, getting rid of high-interest-rate consumer debt, such as with credit cards, is something you should do before quitting your job. (For those already retired with credit card debt, at least make sure you're not adding to it.) Ideally, your mortgage also will be paid off before you quit working. "Mortgages are often the biggest payment that people make on a monthly basis," says Steven Thalheimer, a principal at Thalheimer Financial Planning in Silver Spring, Md. "If you don't have one, you have greater flexibility with your cash flow should something unexpected crop up." That said, if you still carry a mortgage but it's manageable on your retirement income, don't deplete what modest savings you have to pay off the house, says Robert Schmansky, founder of Clear Financial Advisors in Livonia, Mich. Read more here...
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1. Your new Medicare card will NOT have your SSN.
The Medicare Access and CHIP Reauthorization Act (MACRA) requires CMS (Centers for Medicare & Medicaid Services) remove SSNs from all Medicare cards. The new cards will have a random 11 digit identifier that's a mix of numbers and letters. 2. You will not see your new cards before April 2018. The transition period will begin no earlier than April 1, 2018 and run through December 31, 2019. 3. This change will take some time. With over 55 million Medicare beneficiaries in the US, moving to new Medicare numbers and cards requires a lot of changes to the CMS systems! 4. Your benefits will stay the same. The new Medicare numbers will NOT change anything in your coverage. You can start using your new card as soon as you receive it. 5. You do not need to do anything! This change will be automatic. There is no need to confirm your personal information with Medicare. When CMS sends your new Medicare card, they will mail it to you. SCAM ALERT; Scammers posing as Medicare reps will call asking for your current Medicare number & offer to send you a new card. STAY ALERT. Never give your information to anyone suspicious over the phone! If concerned, contact the NY Senior Medicare Patrol at 877-678-4697 to report.
Be sure to sign up for Part D in time to avoid paying higher premiums for prescription drug coverage.
En español l Medicare is uncharted territory for most of the 10,000 people who come into the program each day. It's not a minefield, exactly, but lurking in the undergrowth are pitfalls and traps that can be costly unless people take care to dodge them. "Avoiding the most common mistakes in Medicare can make the difference between having good financial and health security — or not," says Joe Baker, president of the Medicare Rights Center, a national consumer group. The center hears constantly from older Americans who've been forced to go without coverage for many months or to pay higher premiums for the rest of their lives — just because they didn't know the rules about enrollment. "We are campaigning to get the federal government to send a letter to everyone in their 64th year saying here's what you need to know and who to call to get a question answered," Baker adds. But right now, absent that information, here are the top 10 Medicare mistakes to beware of. 1. Assuming you don't qualify if you haven't worked long enough Earning 40 credits by paying payroll taxes at work — about 10 years' work — ensures that you won't have to pay premiums for Part A services (mainly hospital insurance) when you join Medicare. But you don't need any work credits to qualify for Part B (doctors' services, outpatient care, medical equipment) and Part D (prescription drugs), provided that you're 65 or older, and a U.S. citizen or a legal resident who's lived in the United States for at least five years. You may also qualify for Part A benefits on your spouse's work record, or you can pay premiums for them. If you wait to sign up until you've earned 40 credits, you may end up paying permanent late penalties. 2. Failing to enroll in Part B when you should Signing up at the time that's right for you is critical. If you don't, you risk late penalties, in the form of surcharges added to your premiums for all future years, and delays of several months before coverage kicks in. If you have health coverage beyond age 65 from an employer for which you (or your spouse) actively work, and the employer has 20 or more workers, you can delay Part B enrollment without penalty until the job ends. Otherwise, you need to sign up during your seven-month initial enrollment period — which includes the month you turn 65, three months before and three months after. Read More over at AARP.....
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The St. Lawrence County Chapter (SLCC) #2831 is a community of advocacy and volunteers whose purpose is to 1) promote at the local level the priorities, programs and policies specific for the benefit of our seniors, 2) maximize member engagement in a broad menu of services, information and educational activities, 3) demonstrate the contributions and potential of people who are 50+ to encourage their full participation in contemporary life, 4) create fundraising opportunities to achieve self-sufficiency, and 5) stimulate public interest in a variety of issues.
Past Posts:
November 2019
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