These days, it is seemingly impossible to live without proper health insurance. The cost of health care is already quite high and, depending on your health needs, you could be left with a hefty bill after services. With the Affordable Health Care Act coming into play in 2013, there could be changes ahead with regards to health care. For many Americans however, Social Security benefits are how they anticipate paying for retirement health necessities, with or without the Affordable Care Act.
Unfortunately, the Social Security Board of Trustees estimates that this type of retirement funding will not be around, in its current state, forever. By 2033, it may only be able to pay up to 75% of its scheduled benefits. And that does not even take into account the Medicare program – which is how many retirees pay for their health insurance.
So, in light of the fact that we just cannot stop worrying about retirement and health care, let’s break down some quick facts and social security and a way you can supplement the benefits- no matter what happens to them – with long term care insurance.
• Your age has a significant impact on the amount of money you are eligible to collect from social security benefits. While you can start to collect at 62, you want to wait until the full retirement age or you could be facing a reduction of as much as 25% of your benefits.
• Did you know that you need to earn at least 40 “credits” to be able to collect on social security benefits? You can earn up to four credits a year – meaning that, at minimum, you must be in the workforce for 40 years.
• There is a limit on the amount of benefit you can receive. In 2012, the maximum monthly benefit was $2,513.
• Once you hit retirement age, you can delay your benefit. With each year of delay your benefit may grow by 8% until you turn 70.
• You must pay tax on your social security benefits once you start receiving them.
Social security benefits come with a lot of strings. What doesn’t? Long-term care insurance. You can supplement the cost of health care with long-term care insurance to avoid having to pay costly medical bills should you become unable to perform some of the daily acts of living and require health care to assist you. While Medicare and Social Security can help, as you can see, it may not be enough.
If you want to talk about your options, all you have to do is give one of our agents a call today.