A Brief intro to Social Security and Medicare

Social Security and Medicare.

These programs can seem complicated, but they’re super important — whether you’re nearing retirement, helping your parents figure things out, or just planning for your future. So, let’s break it all down in plain English. No jargon. No stress.

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Transcript

[00:00:00]
Speaker 1: Hello, and welcome back to our Wealth Grow podcast,
[00:00:03]
Speaker 1: where we make sense of all the financial stuff that usually sounds
like
a headache.
[00:00:08]
Speaker 1: I'm Stuart Cameron,
[00:00:10]
Speaker 1: OSJ branch manager and financial advisor
[00:00:13]
Speaker 1: with Wharton Investment Consultants.
[00:00:16]
Speaker 1: And today, we're tackling two big
[00:00:18]
Speaker 1: topics,
Social Security
[00:00:20]
Speaker 1: and Medicare.
[00:00:23]
Speaker 1: These programs can seem complicated,
[00:00:25]
Speaker 1: but they're super important. Whether you're nearing retirement,
[00:00:29]
Speaker 1: helping your parents figure things out, or just planning for your future.
[00:00:34]
Speaker 1: So let's break it all down in plain English. No jargon, no stress.
[00:00:41]
Speaker 1: All All right. Let's start with
Social Security
.
[00:00:45]
Speaker 1: This is basically a government run retirement program that you paid to through your paycheck.
[00:00:52]
Speaker 1: You know that 6.2%
[00:00:54]
Speaker 1: of that gets taken out.
[00:00:56]
Speaker 1: That's your contribution.
[00:00:58]
Speaker 1: Your employer matches it and together that money goes into a big pot
[00:01:03]
Speaker 1: that helps pay benefits to people who've retired,
[00:01:06]
Speaker 1: are disabled,
[00:01:07]
Speaker 1: or are survivors of someone who passed away.
[00:01:12]
Speaker 1: Once you reach age 62,
[00:01:14]
Speaker 1: you can start getting monthly payments based on your earnings.
[00:01:18]
Speaker 1: But here's the kicker.
[00:01:20]
Speaker 1: If you wait until age 67
[00:01:22]
Speaker 1: or even 70,
[00:01:25]
Speaker 1: those checks get bigger.
[00:01:27]
Speaker 1: So it's all about timing.
[00:01:31]
Speaker 1: So how do you qualify?
[00:01:33]
Speaker 1: You need 40 credits,
[00:01:35]
Speaker 1: which sounds fancy, but it just means working for about ten years.
[00:01:40]
Speaker 1: And the amount you get,
[00:01:42]
Speaker 1: well, that depends on how much you earned,
[00:01:44]
Speaker 1: how many years you worked, and when you start collecting.
[00:01:52]
Speaker 1: So some quick tips to get the most out of it.
[00:01:55]
Speaker 1: Work at least thirty five years,
[00:01:58]
Speaker 1: fewer than that and the government fills in zeros.
[00:02:02]
Speaker 1: Delay start as long as possible,
[00:02:05]
Speaker 1: benefits increased yearly
[00:02:07]
Speaker 1: until age 70.
[00:02:10]
Speaker 1: And think strategically
[00:02:12]
Speaker 1: if you're married,
[00:02:13]
Speaker 1: spousal and survivor benefits can change your game plan.
[00:02:18]
Speaker 1: We will
[00:02:19]
Speaker 1: explore claiming strategies
[00:02:21]
Speaker 1: in more detail in a later podcast.
[00:02:25]
Speaker 1: Now let's switch over to Medicare,
[00:02:28]
Speaker 1: your health insurance
[00:02:29]
Speaker 1: after 65.
[00:02:32]
Speaker 1: There are four parts and yet the names could have been better.
[00:02:36]
Speaker 1: Part a,
[00:02:38]
Speaker 1: hospital stuff is usually free.
[00:02:41]
Speaker 1: Part b,
[00:02:43]
Speaker 1: doctor visits,
[00:02:45]
Speaker 1: outpatient care.
[00:02:47]
Speaker 1: This has a monthly premium.
[00:02:49]
Speaker 1: Part C,
[00:02:51]
Speaker 1: Medicare Advantage,
[00:02:53]
Speaker 1: private insurance that bundles everything.
[00:02:56]
Speaker 1: And part D,
[00:02:58]
Speaker 1: prescription drugs.
[00:03:01]
Speaker 1: If you and your spouse worked ten plus years, part a won't cost you anything.
[00:03:06]
Speaker 1: But b,
[00:03:07]
Speaker 1: c,
[00:03:08]
Speaker 1: and d,
[00:03:09]
Speaker 1: you'll be paid something each month
[00:03:11]
Speaker 1: depending on the plan you choose.
[00:03:15]
Speaker 1: So when do do you enroll?
[00:03:17]
Speaker 1: Your initial enrollment period
[00:03:19]
Speaker 1: starts three months before your 60
[00:03:22]
Speaker 1: birthday,
[00:03:23]
Speaker 1: includes your birthday month and ends three months after.
[00:03:28]
Speaker 1: If you miss that and don't have other health coverage, you could get hit with penalties.
[00:03:34]
Speaker 1: Here's the cost rundown for 2025.
[00:03:38]
Speaker 1: Part B,
[00:03:40]
Speaker 1: about $174
[00:03:42]
Speaker 1: a month,
[00:03:43]
Speaker 1: more if you earn more.
[00:03:45]
Speaker 1: Part d,
[00:03:47]
Speaker 1: depends on the plan, usually 10 to $60
[00:03:50]
Speaker 1: a month.
[00:03:52]
Speaker 1: Medicare Advantage Part c,
[00:03:55]
Speaker 1: that varies a
[00:03:56]
Speaker 1: ton, but often cheaper than combining b and d plus Medigap.
[00:04:02]
Speaker 1: And speaking of Medigap,
[00:04:04]
Speaker 1: that's a supplemental plan that helps cover what Medicare does it,
like
co pays and deductibles.
[00:04:12]
Speaker 1: Let's hit some rapid fire questions
[00:04:14]
Speaker 1: I get all the time.
[00:04:16]
Speaker 1: Question,
[00:04:17]
Speaker 1: is
Social Security
going to disappear?
[00:04:21]
Speaker 1: Nope. Even if the trust fund runs low,
[00:04:24]
Speaker 1: payroll taxes will still fund about 75
[00:04:28]
Speaker 1: to 80% of benefits
[00:04:31]
Speaker 1: and reforms are likely before
[00:04:34]
Speaker 1: that. Question, do I have to sign up for Medicare at 65?
[00:04:38]
Speaker 1: Not
always
.
[00:04:40]
Speaker 1: If you're still working and have good coverage,
[00:04:43]
Speaker 1: you might delay parts b and d. Just make sure you understand the rules.
[00:04:49]
Speaker 1: Can I have Medicare and private insurance? Yes. In fact, many people do. It's all about the coordination ofbenefits.
[00:04:57]
Speaker 1: Can I live abroad and still get
Social Security
?
[00:05:01]
Speaker 1: In many countries, yes.
[00:05:03]
Speaker 1: Medicare though, it doesn't travel well. You'll need private international coverage.
[00:05:10]
Speaker 1: Okay. Let's land this plane.
[00:05:12]
Speaker 1:
Social Security
and Medicare are huge pieces of your retirement puzzle.
[00:05:16]
Speaker 1: And while they're complicated,
[00:05:18]
Speaker 1: they're also manageable,
[00:05:20]
Speaker 1: especially if you start learning now.
[00:05:23]
Speaker 1: There's three things you can do today.
[00:05:26]
Speaker 1: Check your
Social Security
estimate
[00:05:28]
Speaker 1: at ssa.gov.
[00:05:32]
Speaker 1: Explore Medicare plans at medicare.gov,
[00:05:36]
Speaker 1: or ask your financial advisor about your specific situation.
[00:05:40]
Speaker 1: It's worth it.
[00:05:42]
Speaker 1: Well, that's it for this episode. You've made it.
[00:05:45]
Speaker 1: Thanks for joining us on Wealth Grow.
[00:05:48]
Speaker 1: If you
like
this episode, be sure to follow, leave a
review
, and share it with someone who needs to hear it.
[00:05:56]
Speaker 1: Have questions or want to suggest a topic? Just send an email.
[00:06:00]
Speaker 1: I'd love to hear from
[00:06:02]
Speaker 1: you. Until next time, take care of your money and I'll take care of you.
[00:06:11]
Speaker 1: Thanks for listening. And until next time, plan wisely, invest smartly, and build a legacy that lasts.
[00:06:18]
Speaker 1: These podcasts are brought to you by Wharton Investment Consultants,
[00:06:22]
Speaker 1: fifty ten Canby Drive, Wilmington, Delaware
[00:06:25]
Speaker 1: one nine eight zero eight.
[00:06:28]
Speaker 1: Telephone, (302)
[00:06:30]
Speaker 1: 239-2111.
[00:06:33]
Speaker 1: Securities and advisory services are offered through registered representatives
[00:06:38]
Speaker 1: of Sotera advisor Advisor Networks LLC,
[00:06:42]
Speaker 1: member FINRA SIPC,
[00:06:44]
Speaker 1: a broker dealer, and a registered investment adviser.
[00:06:48]
Speaker 1: Sotera is under separate ownership from any other named entity.
[00:06:53]
Speaker 1: The views depicted in this material are for information purposes only
[00:06:57]
Speaker 1: and are not necessarily those of
Cetera
Advisor Networks LLC.
[00:07:03]
Speaker 1: They should not be considered specific advice or recommendations for any individual.
[00:07:08]
Speaker 1: Neither
Cetera
Advisor Networks LLC
[00:07:11]
Speaker 1: nor any of its representatives
[00:07:14]
Speaker 1: may give
legal
or
tax
advice.