For many retirees and those living on welfare, there is no denying that Social Security provides a decent dependable source of regular income. In anything, according to an economic assessment survey conducted two years ago around 2015 March, Social Security accounts for about 50% income of over 78% of retirees in the US. However, considering that we are dealing with retirees at this juncture, a good junk of this income is often channeled to funding health-related costs such as regular medication and the like. Therefore, this leaves with less money available in their personal bottom lines for other assorted retirement expenses or just leisure.
Social Security is Important
Contrary to what most of us in the top echelons of the society think, Social Security is quite vital to people in the lower income brackets. Especially in WV social security is paramount as it represents a retirement income that a beneficiary can’t outlive.
The benefits are often also extended to one’s spouse – as survivor benefits – in the event of an unexpected demise. What’s more, these survivor benefits are also adjusted for inflation as time elapses. So, this implies that the $100 Social Security allocation that one earned in the 2000s could be adjusted for a far much bigger figure in 2020. That’s why for a great deal of the population, Social Security is quite an important source of income.
How About the Rising Healthcare Costs?
Most people work under the assumption that Medicare and other government-funded medical care plans will cover their health-care costs wholly after retirement. However, this couldn’t be any further from the truth. Medicare also caters for just a portion of the entire costs of your health-care services after reaching the age of 65. Thus, this leaves you with a relatively colossal amount of uninsured and unaccounted-for medical expenses. And this leads to several observations.
For starters, the amount of money that you will be channeling to your health care funds ultimately depends on the age you decide to retire from active employment. Apart from that, your general health status, the average cost of medical care in your locale, and how long you live will also play a role in how much you will spend in your sunset years.
Medicare’s Impact on Your Social Security
A significant percentage (nearly 72%) of people above 65 often receive Medicare. Generally, this old-age-healthcare plan consists of two parts, Part A and Part B. Part A is usually free and covers general medication and 20% of the total fees charged by your doctor’s visits. Part B encompasses many insurance premiums and is normally deducted from the Social Security check. And considering that Social Security is considered a type of fixed income, changes in the medical care industry that can contribute to the rise in insurance premiums will affect the bite taken off your Social Security. In other words, you should spend more of your retirement savings (and other personal nest eggs) than you had anticipated as the cost of old-age healthcare skyrockets.