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Almost 65.......Help!

Posted by ShirleyAnn (My Page) on
Sat, Feb 8, 03 at 11:44

My husband will be 65 later this month.....what should we be doing as far as SS and insurance is concerned? He is NOT retiring......who can we ask about these questions?

I do not have a job away from home.

Do any of you have advice for us? We'd appreciate hearing from you......thanks so much!

Shirley


Follow-Up Postings:

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RE: Almost 65.......Help!

First. He needs to go or call your local Social Security office NOW. he needs to be enrolled in the Medicare program. Some insurance policies reduce coverage when the employee reaches that age and instead of paying as before, it become a secondary insurance policy with Medicare becoming the primary coverage.

If this is a group policy with his company, he may find that the coverage actually ends at his birthday. It all depends on the policy on what kind of coverage he will have.

Even if he continues to work, he can still collect Social Security payments. However, the longer he puts off taking these benefits, the larger the payments will be when he does start.

Do not delay in contacting the SS office.


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RE: Almost 65.......Help!

Aileen is absolutely right. Contact your local SS office immediately. I'd call first to see what kinds of documents they will require you to have with you. Also have him check with his employer to see what their policy is concerning turning 65. Where I work, there is no change, Medicare is secondary there.

Another,
Shirley Anne


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RE: Almost 65.......Help!

Canada Pension Plan, a contributory system, is ordinarily applied for at age 65. The applicant must state that s/he is "substantially retired", but I think that the definition of this is somewhat flexible.

Most employees who are continuing to work at anywhere near full time, at a decent wage rate, don't want the extra income which will be taxed at the highest marginal rate.

The monthly payment depends somewhat on the amount contributed, which was graduated according to our income level.

Our seniors can apply at age 60, with benefit rate reduced at the rate of 1% every two months that the benefit begins before age 65, i.e. 6% per year, and 30% reduction if one applies at age 60.

If one delays applying for benefit after 65, benefit rate increases at the same rate as reduction indicated above for early application.

The only person who has a choice about applying is the one who does not need the money - if one needs the money, s/he doesn't have a choice. So, much of the income would be available for investment, if the beneficiary chooses.

Quite a number of financial advisors (of which I was one) suggest that beneficiaries apply as early as practicable. If one invests the pension income at an average rate of return, if one dies before the early 80s, one is ahead.

If skilled investment planning is involved, enabling one to obtain an above-average rate of return, or to use investments that attract taxes at a lower, or deferred rate, one can increase the break-even age to the high 80s or early 90s, possibly higher.

Learning how money works is an interesting hobby - that pays well.

As does learning how the tax system works, and how one may make use of it as one invests.

Good wishes to all,

joyful guy/Ed

P.S. I've posted for a time on "Money Saving Tips", but wasn't eligible here, as I hadn't contributed. That topic went restricted a while ago, and following a trip to the U.S. last summer I had some money left over, so planned to send Spike a contribution - before the restriction went on "Saving".

For some information on my background, visit My Page.

EB


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RE: Almost 65.......Help!

A big thanks to each one of you who responded! We are in touch with the SS office and ready to make the decisions!

Take care,
Shirley


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RE: Almost 65.......Help!

Shirley Ann,

I know next to nothing about the U.S. system.

It seems to me that I heard somewhere a while ago that, if one applied for SS a few years early, there was a hefty reduction in benefit - much higher than the 6% annually that Canada Pension is reduced.

If that may be so, if one postpones asking for benefit for a few years past 65, is there a complementary hefty increase in the benefit when they do request it?

Worth checking into - especially if your husband plans to continue working, so probably doesn't need the extra money that much, just now.

Also, receiving SS may put him into a higher tax bracket.

I think it wise that you check out various options before you decide, and the consequences.

Good wishes for a happy, healthy and prosperous old age, with friends to share your joy in living.

joyful guy/Ed


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