Managing Money In Retirement – Benefits, Scams & Family

Your Money and Retirement

Your retirement income will need to be enough to pay for your needs through to the end of your life.

  • Government Benefits
  • Retirement - Managing Your Money
  • Financial Scams
  • Family Money Stress


Government Benefits

Social Security
You typically have to work for at least ten years in order to qualify for retirement benefits. Social Security bases the benefit that you receive on your highest thirty five years of income. The average Social Security income is about $1,400 a month. Usually, you can start collecting full retirement benefits between the ages of 66 and 67, although it depends on the year you were born in.

After you reach the age of 65, your health insurance options also change. You'll be eligible for Medicare, the health insurance program that the United States offers for individuals 65 and older. It makes sense to apply for Medicare a few months before turning 65, as the process can take quite a bit of time.

Medicare Basics
Basic Medicare coverage begins with Parts A and B.

Part A is often called "hospital insurance". This part is free for the majority of people as they have spent their working lives paying in to Medicare.

Part B is medical insurance. It covers more services and supplies that are needed to treat ongoing medical conditions and acute care, as well as a few preventative services. You'll pay a monthly premium for Medicare Part B.

Original Medicare is made up of Medicare Parts A and B. You can expect Original Medicare to handle about half of your health care expenses, especially preventative care and medically necessary medical appointments. The Medicare website has a feature that lets you check to see if a service or procedure is covered.

With Original Medicare, you still have numerous expenses like deductibles, co-pays, and coinsurance. Medicare Parts C and D offer extra insurance coverage that you can purchase.

Part C is called Medicare Advantage, and is private insurance that provides coverage in one plan that includes Medicare Parts A and B, as well as Medicare D - prescription drug coverage. Other services like hearing, dental, and vision may also be covered as well.

Part D is an additional prescription drug coverage that you can add to your Medicare benefits.

Retirement - Managing Your Money

Long Term Care Insurance
Human life expectancy is growing longer than ever. This means that we're more likely to need long term care than previous generations.

Even better, it doesn't have to mean a nursing home. Whether you'd prefer home modifications such as ramp installations or grab bars, assistance with daily activities, or long term care that can help you live comfortably, there are numerous kinds of long term care available.

These services can be fairly expensive, though.

Out of pocket costs for long term care can cost tens of thousands of dollars, so purchasing a policy for long-term care insurance can save you and your loved ones quite a bit of money.

Another option to consider is a combination of life insurance and long term care insurance policy. These may be more expensive than a typical life insurance policy, but will also help you to maximize the benefits you pay for.

Lifetime Annuity
Do you want to keep receiving an income even after you've clocked out for the last time.

You may want to think about a lifetime annuity.

An annuity is a financial product sold by insurance agencies, which guarantees an income to the person who owns it for a specific period of time, or for the remainder of their life.

Fixed lifetime annuities are often used for retirement, as they provide income of a specific amount for life, so you'll always have an income.

This means you'll have a consistent payment amount for as long as you live.

Bank Accounts
Saving your money is a great way to boost your retirement income. Consider a high-interest bank account, or an account designed for senior adults.

Financial Scams

Older individuals suffer from greater losses if they are the victim of a financial scam, with investment schemes among the most common. It's important research scams that prey on seniors and learn how to protect yourself.

Family Money Stress

Although it can be helpful to obtain opinions from  your friends and family about finances, it's important to think carefully before you actually give them power over your finances.

Sometimes older individuals find that they are being pressured by friends or family to give control of their money or property against their will. This is financial abuse and is against the law.

If this is happening to you, it's important to seek legal advice. Contact your local legal aid office if you can't afford an attorney.

Spend as much time as you can learning about financial decisions when you're in your 50s so that you can utilize your retirement income as well as possible. Visit a financial advisor for input if necessary.

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