If you plan to retire at 62, there are things that you need to be aware of before you hand in your resignation. Are you really ready for what’s to come? You need to think about two important things – Social Security and Medicare. It is normal if you fear running out of money but you have been building and protecting your future for a long time. Now is about polishing your smart decisions.
When tackling your Social Security, the most common advice is to start collecting it until you are older. Remember that you will get a larger benefit by waiting to collect it. In fact, many retirees use their own savings to cover expenses while delaying Social Security. The next thing to consider is the Medicare. It will start when you reach 65 years old. If you retire earlier, you need to make sure that you can afford health insurance enough at least until you are 65.
You should focus your attention on Medicare for now. Here are the five things that you need to know about virginia medicare plans.
Original Medicare and Medicare Advantage Plans are the two ways to get Medicare. In the case of Original Medicare, there are two parts – Part A (inpatient or Hospital Insurance including nursing facility, hospice care, and home health) and Part B (outpatient or Medical Insurance including mental health care, laboratory tests, ambulance services and medical equipment). In Medicare Advantage Plan, there’s Plan C (offers same under Parts A and B) and finally, Part D (outpatient prescription drug insurance).
What’s not covered?
You have to know that Medicare will not cover everything. There are medical services that it does not cover like long-term care, dental care, dentures, cosmetic surgery, acupuncture, routine foot care, hearing aids and eye exams prescribing glasses or contact lenses.
What is the enrollment deadline?
It is crucial that you remember the enrollment deadlines. If you fail to sign up during the initial enrollment period, you will be fined or you could be charged with higher premiums. The initial enrollment period is 7 months – 3 months before you turn 65, the month you are 65 and 3 months after you turned 65.
What is the premium amount?
Most people do not pay for Medicare Part A. However, the premium for Part B is $134 per month. This amount is only applicable for new enrollees that haven’t claimed their Social Security. For other recipients, they pay $109 per month.
What is the out-of-pocket cost?
You have to know that there’s $183 Part B deductible in 2017. After that, you will be charged 20% of the approved amount for most services. There is no limit annually on out-of-pocket costs. For Part A, it has a $1,316 deductible if you are hospitalised. Additional costs will apply if you exceed 60 days in the hospital.