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>> HI!
I'M BARBARA FROM THE SOCIAL
SECURITY ADMINISTRATION, HERE
TODAY TO TALK TO YOU ABOUT THE
RETIREMENT TOOLKIT.
THE TOOLKIT IS A COLLABORATION
OF THE SOCIAL SECURITY
ADMINISTRATION, THE CENTERS FOR
MEDICARE AND MEDICAID SERVICES,
AND THE DEPARTMENT OF LABOR.
WE CREATED THE RETIREMENT
TOOLKIT BECAUSE WE WANT YOU TO
HAVE THE INFORMATION YOU NEED TO
MAKE THE BEST DECISIONS ABOUT
YOUR RETIREMENT.
YOU WILL NEED TO MAKE A NUMBER
OF IMPORTANT DECISIONS AS YOU
APPROACH RETIREMENT.
DECISIONS THAT CONCERN YOUR
SOCIAL SECURITY BENEFITS, YOUR
MEDICARE BENEFITS, AND YOUR
RETIREMENT SAVINGS ACCOUNTS,
SUCH AS 401(K) PLANS.
SOME OF THESE DECISIONS ARE
ESPECIALLY IMPORTANT DEPENDING
ON YOUR AGE.
THIS IS PARTICULARLY TRUE
WITH MEDICARE.
IF YOU DO NOT MAKE A DECISION
ABOUT MEDICARE AT THE RIGHT AGE,
YOU MAY PAY A HIGHER MONTHLY
PREMIUM FOR YOUR
MEDICARE BENEFITS.
THE RETIREMENT TOOLKIT WILL HELP
YOU UNDERSTAND WHICH DECISIONS
YOU NEED TO MAKE AND
AT WHAT AGE.
THE TOOLKIT CONTAINS A BRIEF
DESCRIPTION OF YOUR SOCIAL
SECURITY BENEFITS, YOUR MEDICARE
BENEFITS, AND THE PERSONAL
RETIREMENT SAVINGS ACCOUNTS YOU
MAY HAVE THROUGH YOUR EMPLOYER.
IT ALSO CONTAINS A LIST OF
PUBLICATIONS AND INTERACTIVE
TOOLS TO HELP YOU PLAN
FOR RETIREMENT.
AND I THINK ITS MOST IMPORTANT
FEATURE IS A TIMELINE THAT
INDICATES AT WHAT AGES YOU NEED
TO MAKE DECISIONS ABOUT
WHICH BENEFITS.
BECAUSE KNOWING WHEN TO MAKE
CERTAIN DECISIONS IS SO
IMPORTANT, I AM GOING TO FOCUS
ON THE AGES AT WHICH DECISIONS
NEED TO BE MADE ABOUT SOCIAL
SECURITY AND MEDICARE BENEFITS.
THE TIMELINE SHOWS THAT AGE 62
IS THE EARLIEST AGE YOU CAN
CLAIM SOCIAL SECURITY BENEFITS.
IT ALSO SHOWS THAT IF YOU CLAIM
BENEFITS AT 62, YOUR MONTHLY
BENEFITS WILL BE REDUCED.
IN ADDITION, IF YOU CONTINUE TO
WORK AND EARN ABOVE A CERTAIN
AMOUNT, YOUR MONTHLY BENEFITS
WILL BE REDUCED EVEN FURTHER.
HOWEVER, ONCE YOU REACH YOUR
FULL RETIREMENT AGE, YOUR
MONTHLY BENEFITS WILL BE
INCREASED PERMANENTLY TO ACCOUNT
FOR ANY MONTHS THAT BENEFITS
WERE REDUCED BECAUSE OF YOUR
EARNINGS FROM WORK.
THE TIMELINE MAKES CLEAR THAT
THE FULL RETIREMENT AGE IS
EITHER 66 OR 67 DEPENDING UPON
YOUR BIRTH YEAR.
IF YOU WAIT TO CLAIM BENEFITS
UNTIL YOUR FULL RETIREMENT AGE,
YOU WILL RECEIVE YOUR FULL
BENEFITS AND WILL NOT BE SUBJECT
TO AN EARNINGS LIMIT IF YOU
CONTINUE TO WORK.
IN ADDITION, IF YOU DELAY
CLAIMING SOCIAL SECURITY
BENEFITS UNTIL BETWEEN AGES 66
AND 70, YOUR MONTHLY BENEFITS
WILL INCREASE FOR EVERY MONTH
THAT YOU DELAY CLAIMING.
THIS MEANS THAT FOR EVERY YEAR
THAT YOU DELAY CLAIMING, YOUR
MONTHLY BENEFITS WILL INCREASE
BY 8 PERCENT.
THESE INCREASES IN YOUR MONTHLY
BENEFITS ARE CALLED DELAYED
RETIREMENT CREDITS.
IT IS ALSO IMPORTANT TO KNOW
WHEN TO CLAIM MEDICARE BENEFITS.
AGE 65 IS THE IMPORTANT AGE.
MEDICARE PART A, WHICH MOST
WORKERS HAVE, COVERS HOSPITAL
INSURANCE AND HAS NO PREMIUM IF
YOU PAID MEDICARE TAXES
WHILE WORKING.
PARTS B AND D, HOWEVER, ARE
SUBJECT TO PREMIUMS
AND PENALTIES.
MEDICARE PART B COVERS MEDICAL
INSURANCE, SUCH AS DOCTORS'
SERVICES, OUTPATIENT CARE, AND
HOME HEALTH CARE.
YOU WILL BE CHARGED A MONTHLY
PREMIUM FOR PART B BASED ON YOUR
INCOME LEVEL.
IF YOU ARE ALREADY RECEIVING
SOCIAL SECURITY BENEFITS WHEN
YOU TURN AGE 65, YOU ARE
AUTOMATICALLY ENROLLED IN
MEDICARE PART B UNLESS YOU
DECLINE IT.
IF YOU ARE NOT RECEIVING SOCIAL
SECURITY BENEFITS, YOU NEED TO
ENROLL DURING THE SEVEN-MONTH
PERIOD THAT BEGINS THREE MONTHS
BEFORE THE MONTH YOU TURN 65,
INCLUDES THE MONTH YOU TURN 65,
AND ENDS THREE MONTHS AFTER THE
MONTH YOU TURN 65.
IF YOU HAVE GROUP HEALTH
INSURANCE THROUGH YOUR EMPLOYER,
YOU ARE ABLE TO POSTPONE
CLAIMING MEDICARE UNTIL YOU
RETIRE OR YOUR COVERAGE ENDS,
WHICHEVER COMES FIRST.
BUT THE DECISION ON WHEN TO
CLAIM MEDICARE WILL ALSO DEPEND
ON HOW YOUR INSURANCE WORKS
WITH MEDICARE.
IF YOU DO NOT SIGN UP FOR PART B
WHEN YOU ARE FIRST ELIGIBLE, YOU
MAY HAVE TO PAY A LATE
ENROLLMENT PENALTY FOR AS LONG
AS YOU HAVE PART B.
MEDICARE PART D IS THE COMPONENT
OF MEDICARE THAT COVERS
PRESCRIPTION DRUG COSTS.
YOU CAN SIGN UP FOR PART D WHEN
YOU FIRST BECOME ELIGIBLE FOR
MEDICARE AT AGE 65, OR BETWEEN
OCTOBER 15TH AND DECEMBER 7TH
EACH YEAR OR DURING SPECIAL
ENROLLMENT PERIODS.
ADDITIONALLY, YOU WILL NEED TO
SELECT A DRUG PLAN AND MOST OF
THESE PLANS CHARGE A
MONTHLY PREMIUM.
IF YOU DO NOT SIGN UP WHEN FIRST
ELIGIBLE FOR MEDICARE, YOU MAY
PAY A PENALTY THAT WILL INCREASE
YOUR PREMIUMS FOR AS LONG AS YOU
RECEIVE PART D.
THE ONLY WAY TO AVOID THE
PENALTY IS TO SHOW PROOF THAT
YOU HAVE DRUG COVERAGE THAT IS
AT LEAST AS GOOD AS MEDICARE'S,
WHICH IS THE CASE FOR MOST
EMPLOYER-PROVIDED
HEALTH CARE PLANS.
I HOPE YOU HAVE FOUND THIS BRIEF
OVERVIEW OF THE RETIREMENT
TOOLKIT HELPFUL.
YOU CAN FIND THE TOOLKIT
ON OUR WEBSITE AT
WWW.SOCIALSECURITY.GOV/RETIRE.
I ENCOURAGE YOU TO TAKE A LOOK
AT THE TOOLKIT, THE INFORMATION
IT PROVIDES, AND THE
PUBLICATIONS IT LISTS.
MOST IMPORTANTLY, THINK ABOUT
THE BEST RETIREMENT
DECISIONS FOR YOU.