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Senior citizens are complaining to AARP that they are getting calls from Medicare claiming that because of the coronavirus, they were issuing plastic cards now and asking people to verify their Social Security number. These are not representatives of Medicare, these are scammers trying to get your personal information so that they can commit identity theft. Beware!
Social Security participants are likely to get an ever-so-slightly increase next year (+1.3%) according to the numbers looking at the index that cost of living adjustments (COLA) are based on. Of the 68 million people on Social Security and Disability, the average payment will go up by $19.70 to $1,537. “It makes people have to take more out of savings,†Mary Johnson, a policy analyst for the Senior Citizen League, said. That’s due to the fact that many people believe the index doesn’t adequately account for inflation. “Other people who don’t have savings will go into debt. Many people may go into poverty,†she said.
It’s more important than ever this year that you examine your options for a Medicare Advantage Plan or Medicare Supplement Insurance Plan (Medigap), in particular to see what is covered if you should get the dreaded coronavirus. October 15 to December 7 is the period when all people with Medicare can change their health care plan and prescription drug coverage for the following year. In general, Medicare beneficiaries without some sort of Medicare Supplement Insurance will face Medicare cost-sharing if they contract COVID-19 or have any other health problems. If you do have health conditions and leave a Medigap plan for a Medicare Advantage plan for the first time, you do get a one time 12-month “trial right†to try the Medicare Advantage plan and still have the option to go back to their same Medigap plan without medical underwriting. You can find Medicare plan information or compare plans by calling 1-800-MEDICARE or visit Medicare.gov.
https://www.usatoday.com/story/money/columnist/2020/09/23/medicare-open-enrollment-starts-oct-15-heres-what-to-do/5853137002/
Many people take Social Security at the earliest possible time rather than waiting until their official retirement age, which can cost them over $100K over the remainder of their lifetime. Recessions and a jump in early Social Security claims go hand-in-hand, according to the Center for Retirement Research at Boston College. According to Chicago’s Becker Friedman Institute, there’s been a 7% increase in the number of Americans who retired after the pandemic. Edgar Freeberg, 66, said he had planned on waiting until he was 70 to claim Social Security. “I was going for the 70 thing,†he told USA Today. But after his job was outsourced, he felt he had no other choice. Statistics show that filing at age 62 the average household loses out on about $111,000 in lifetime benefits. Here in Monterey, Social Security payments top the national average by a high margin in the wealthier pockets like Carmel and Pebble Beach. But if you are not on the high end of the wage earning spectrum, it may pay to wait to file.