Common Questions in Retirement- Part 2
Today, I’m continuing to answer some of my clients’ most-asked questions. These are some great and important questions you at home may have as well. If you’re interested in learning more, I recommend contacting us to speak about your own situation.
You can also read the article version below:
We’ll start out with this one: What do I need to know about Medicare?
You may get Medicare automatically! If you’re nearing 65 or already 65 and not getting Social Security though, you may have to enroll on your own. You can choose how to get coverage and get help with costs as well. There are multiple different options to choose from.
The system is divided into parts. Part A is free if you and or your spouse have paid Medicare payroll taxes for 10 years or more. If you don’t meet these requirements, you can still enroll in Part A by paying a regular premium. Part A covers hospital services… while part B covers doctor visits and other outpatient services. This has a monthly premium. Part D also carries a regular cost and covers prescription costs.
These three parts are Traditional, or Original Medicare. You could also choose to sign up for Medicare Advantage, or Part C. Advantage offers medical and may also offer prescription coverage through private insurance for a monthly fee.
If you are 65 or older, but still working and getting health coverage from your job, depending on your coverage, you can delay signing up for Medicare Part B, but need to enroll in appropriate time once you do stop working.
Generally, it’s a good idea to go ahead and enroll in Part A as soon as you are eligible since there is no cost if you have paid into Medicare for the appropriate time period.
Another common question: How long will I need guaranteed income?
We generally advise people budget for needing 80 percent of their working income in retirement. You’ll need to factor in travel desires and health care costs, as well as any money you may want to leave for your beneficiaries.
It’s impossible to know exactly how long you will live, so it can be smart to go by an average life expectancy in your mid-80s. You should also look at your family history to gauge how long you should plan to need retirement income. You may be the best off by planning to reach 90 to be safe.
The last question I’ll answer in this video: How can I protect my retirement income from inflation?
Inflation over time will raise costs for everything you’re currently buying or spending money on. This will only weaken the money you do have saved for your retirement years.
There are things you can do to combat the effects of inflation though, like working past your retirement age. This will let you earn a salary in line with current inflation so future benefits may be higher when you take them.
You could also consider investing in riskier products like stocks to better the chances of your investments keeping up with, or even outpacing the inflation rate. You should of course remain invested in more conservative products as well, to be protected.
Another big option may be to hold off on drawing Social Security benefits until you need to. These benefits are protected to some extent against inflation… and by waiting to receive bigger checks, you may be better off in the long run.
Other options? Own or invest in real estate, and think about purchasing an annuity with an inflation rider.
You can get onto retirementadvisers.net to schedule a time to speak about any of these topics in more detail.
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