Common mistakes many people make as they enter and prepare for retirement are their decisions regarding Social Security benefits and Medicare benefits. Many make these decisions without understanding how they work together.
Taking your Social Security benefit before the age of 65 will result in a huge surprise in your check. Medicare Part B premiums ($135.50 per month in 2019 for beneficiaries who make less than $85K or $170K as a couple) are deducted directly from your monthly benefit. Therefore, leaving you with less income than you originally planned.
The other fact that many don’t realize is that your monthly check may or may not increase with a cost of living adjustment (COLA) and Medicare Part B premiums may increase regardless.
For more information on how Social Security and/or Medicare affect your retirement plan, contact us today at (407) 644-4686.