Income, health, ability or desire to work and spousal need for health insurance are all factors in deciding if or when you retire.
The conclusion from Steven A. Sass in a 2016 study conducted by The Center for Retirement research at Boston College said…,”few workers, however, are equipped even to estimate the financial implications of retirement”.
Mr. Sass points out the inability of many workers being pulled out of the labor force too early, may not have a financially secure retirement. Do you know how much cash flow you will need before and after you retire?
In addition to a Accountant, Elder Law Attorney and Financial Planner you also need a trusted insurance advisor to help you navigate your retirement.
You spent your life building your nest egg, great! However, insurance is the only way to protect that nest egg when it comes to health care, long-term-care and on-going living expenses.
Unless you are on Social Security Disability, for more than 2-years, most retirees have a 7-month window to apply for Social Security.
Even if you’re under 65-years of age and on disability, you can enroll in a Medicare Policy if you are past the 2-year mark. If you are on Social Security disability, you will automatically be enrolled in Medicare Part A and Part B prior to your 65th birth month.
If your new to Medicare the timeline would be 3-months before your 65th birth month and 3-months after your birth month to apply for a Medicare card. You can not enroll in a Medicare policy unless you have a Medicare card with issue dates for Part A and Part B.
If you are going to continue working after your 65th birthday, and your employer has a creditable health and medication plan (employer paid health insurance), then you can delay applying for Part B and delay getting your monthly Social security check until after you retire.
When you do decide to retire and leave your employer health plan, you will have a 2-month period to select and enroll in a Medicare health plan.
Ideally, if you’re going to retire at age sixty-five, it’s best to have a conversation with me at least one year before your retirement date. However, most clients delay contact me until one or two months before their retirement.
Understanding Medicare Part A, B, C and D can take many hours because of the complexities in each of these parts. When we meet, I will cover these parts in a more concise and easy-to-understand way.
A simplified way to look the four parts of Medicare is:
· Part A is anything that happens inside of a Hospital
· Part B is anything that happens outside of a Hospital
· Part C is your Supplemental or Advantage Medicare policy.
· Part D is your medication policy
A simplified way to look at Social Security is that they collect your money while your employed and then disperses your money back to you when you retire.
The Centers for Medicaid and Medicare Services (CMS) administers and manages Medicare for health services and medications. A basic rule to follow is if a benefit is approved by Medicare, Medicare pays 80% and your health plan pays 20%.
Within CMS, the Coordination of Benefits and Recovery (COB&R) department balances claim payment between Medicare (80%) and your insurance carrier (20%).