Social Security - your thoughts?

[volinbham]

What happens if I don't need medicare?

you can buy it privately

 

[SuzyVol]

you can buy it privately

I don’t remember if one can delay enrolling in Parts A & B. If one delays enrolling in Part D, there is penalty once enrolled. The penalty is based on the number of months ( or years) that enrollment is delayed.

 

[volinbham]

I don’t remember if one can delay enrolling in Parts A & B. If one delays enrolling in Part D, there is penalty once enrolled. The penalty is based on the number of months ( or years) that enrollment is delayed.

I think that's correct - I was trying to say you can pseudo opt out of Medicare by getting a private plan that is indirectly providing Parts A & B (and typically D) plus other things

 

[volinbham]

So digging around about COLAs and claiming time. It appears that once you are eligible (62) the COLA gets applied even if you don't start taking benefits. As I understand, it gets applied to the full retirement amount so if you take say at 64 the COLA would have raised the FR amount that is then reduced back (8% year) to 64. From that point forward the COLA is applied to your benefit (which will be lower than the FR benefit)

Accordingly, a benefit of waiting is that future COLAs will be applied to a higher base. So the big 8.7 COLA last year would have been applied to say 2000 if you took early but to 3200 if you waited; about a 100/mo difference.

 

[Smokey X]

I don’t remember if one can delay enrolling in Parts A & B. If one delays enrolling in Part D, there is penalty once enrolled. The penalty is based on the number of months ( or years) that enrollment is delayed.

not to state the obvious but you can certainly delay if you continue to work past 65 and are covered by an employer insurance plan.
I'm wondering now if it is worth trying to go back to work just for the insurance/drug coverage. It should be a crime to have to pay $1500 for a 30 day supply of specialty drug coverage when I can pay $40 for the same drugs under an employers plan.

 

[Rasputin_Vol]

SS has always been a Ponzi scheme, a corrupt pay-as-you go socialist scam robbing wealth from tax payers and bankrupting the country in the process...there is no trust fund, never has been....now the chicken are coming home to roost....

There is a 4th option...

 

[Orangeburst]

apparently SS is not the major concern..it is Medicare.

 

[LouderVol]

apparently SS is not the major concern..it is Medicare.

my understanding is that SS still gets most of its money from the SS taxes that go straight to it. recently they have had to start taking from the general funds.

Medicare has been pulling from the general funds for a while, its taxes don't come anywhere close to covering those costs, and so has a larger delta between what is "self funded" via the tax and what they pay out, compared to SS. which is not in good shape either.

 

[overseasorange2]

As of late, more republicans are making headlines about extending the age of retirement, cutting Social Security benefits as a way to 1) preserve the program's longevity and 2) reduce the impact on our national debt. Democrats are arguing that no cuts should be made to Social Security, Medicare should be expanded and all increased costs should be paid for by high income earners ($400,000+).

I'm 37 and over the 16 years I've had a "real job" since graduating UT, I've been fortunate enough to "cap out" of the Social Security tax being withheld for a handful of those years. I feel I've paid a lot of money into the program already and each year that passes, I think my chances of seeing any of it in retirement appear to dwindle.

What does the board think about this?

If somebody does not stop forgiving loans, you are more likely not to see it. Why don't they save that money for the people that earned it? I paid into the system for 38 years!

 

[TOUCHDOWN!!TN]

Did you run your numbers for Medicare part B? Medicare part B premiums are based on income. I know (married filing joint) folks paying $1,118 per month. Sucks right out of your net check monthly.

I know Medicare isn’t free, you can choose which insurance provider and the particular plan you want, but it’s not free. I guess I was just dumb I thought it was free. Maybe some plans could be but you get what you pay for. We got the Cadillac plan from united healthcare, it’s less than 160 a month for part B.

 

[TOUCHDOWN!!TN]

not to state the obvious but you can certainly delay if you continue to work past 65 and are covered by an employer insurance plan.
I'm wondering now if it is worth trying to go back to work just for the insurance/drug coverage. It should be a crime to have to pay $1500 for a 30 day supply of specialty drug coverage when I can pay $40 for the same drugs under an employers plan.

Just do the math for yourself and make good decisions. 1500 for meds is a hard pill to swallow. I know pharma is crooked