We are being fiscally cautious now, with an eye to the possibility of negative impact to what we expected our Medicare and Social Security to be. I don’t consider it political to discuss this subject; it only becomes political when political commentary is attached. We lost H’s anticipated pension when we were in our 50’s, so we have been there/done that. We are fortunate in that we won’t starve to death, but my heart goes out to those who might go from feeling comfortable to being vulnerable. The only advice I have in turbulent times is to be careful with spending unless you know that you can weather any storm.
10 Likes
Since our healthcare is costing around $26,000 this year just for premiums and then we basically need to pay for all of our medical expenses, it wouldn’t take long for even well funded seniors to go broke.
We can’t wait until the husband turns 65 later this year now. Paying for Medicare will be so much less expensive.
10 Likes
A fork in the road, is a fork in the road. The bulk of this thread is about planning ahead whether that was decades ago or now and weighing all possible circumstances in our lives - this is a possible circumstance in our lives and like other circumstances should be a concern on people’s plate.
6 Likes
I definitely “worry” about that – worry meaning I’ve considered it, but it doesn’t keep me up nights. I can only control what I can control. If it becomes an issue, back to work or something else.
2 Likes
One can ‘plan’ not to have Social Security income or Medicare program available. One can plan to have a health crisis and have primary (or sole breadwinner) income end. One can plan to have funds available if one has to retire early due to lay-off or health requiring one’s career to end.
Likely scenarios. How close one is to age 65 for Medicare (to have medical insurance expenses plus out of pocket costs at a more reasonable rate) if one can work until age 65, also considering spousal insurance costs. Some plan to work until both spouses are 65 or utilize COBRA (or other means) to cover younger spouse.
As some on this thread, our family has gone through its share of downturns. The saving thing for families like ours is that we adapt while also being fiscally sound with saving/investing. Living below our means during higher income years and going through the rough patches keeping our heads above water.
With company buy-outs changing hands several times with DH’s company, eventually the last company had no pension benefits. We had cash and stock ‘pay outs’ that we had go into IRAs, except we do get $131/month annuity amount which was part of the pension settlement approved by the government. Once one is in their 50’s - pension was a thing of the past. We saw the writing on the wall, but it was a disappointment. Over time these IRA funds, we converted to Roth IRAs and paid the taxes. One company he worked for in-between had a SAR/SEP, and we also converted that to IRA and then Roth IRA.
My job ended at a time DH was on the lay-off list (and he has had his name on and off the layoff list many times- and kept employment only because his skill level was needed, and he was willing to travel to the work sites nationally and internationally that needed him). It worked out best for our family for me to be SAHM - and I stayed that way until my ‘sunset career’ - his work travel had to happen. I survived aggressive cancer and aggressive treatments at a time when DH’s 401(k) swung down over $200,000 to a low of $316,000 – and his company changed who was administering their 401(k) so we had very little reporting on the losses in a critical period. At the end of year 4 we were only down $30,000 from the end of year 2007. I was able to do very well with returns based on investment choices, with really some stellar years. We moved some funds into Roth IRAs - it would have been nice to have more funds move over, but we can better afford the taxes in our later years – we are making $25,000 shifts each year in retirement funds (from 401k and going into Roth IRA) to level off what we will need to withdraw under RMD at the age determined - age 73 or whatever it will be for us. We are 68 now.
Absolutely agree with @Youdon_tsay “I can only control what I can control.”
This question is written as when, not if.
Can you please point me to the source that says Medicare is going to be abolished!
1 Like
In uncertain times, planning for the uncertain is not unwise. Please don’t turn this into a political thread.
7 Likes
Not trying to turn it into a political thread. The question was posted here as to planning for “when Medicare is abolished”. I seriously didn’t know Medicare was being abolished so am truly curious as to when this is going to happen so I can plan, as I’m going on Medicare this year.
2 Likes
I can’t say with a 100% certainty that it will happen but I have a feeling that this where the US is headed and this is what we all need to plan for. So let’s talk hypothetically. Our family will not be able to pay out of pocket if one of us needs treatment for a very serious illness.
3 Likes
Talking hypothetically makes it a political issue. Maybe ask your question in the politics forum for a discussion. I’m not planning for a hypothetical based on a fear on something that most likely will never happen.
2 Likes
Not everything is political. Planning for future involves a lot of hypotheticals.
4 Likes
Medicare can’t be abolished without a political vote!!!
1 Like
You do have a good point there. It would be political suicide to vote to get rid of Medicare. I think it’s more likely to be means tested or significant limitations put upon what will be covered. I do think that is a likely scenario to plan for.
3 Likes
In which case, Medicare as we know it would in effect be gone. Meaning, it is an event some will choose to consider when planning for retirement.
4 Likes
deleted
1 Like
Medicare is already means-tested. (Auntie IRMAA.)
5 Likes
Yes parts B and D are for sure. A is not.
1 Like
I don’t know about means tested, but income tested. And it’s definitely less of a hit to pay a couple hundred dollars extra than if you had to pay for entire thing. Our insurance is 36K/yr now, not including dental. Can’t wait for Medicare, whether or not we pay the max rate.
6 Likes
Medicare may also go the way of Advantage only - giving it to private providers to “solve the problem”. I personally do not want that option. We currently pay higher premiums with our Traditional plus Supplement coverage since we’ve had the fortune of health (so far). But for all kinds of reasons discussed upthread, the Advantage programs have not all been advantageous for the consumer.
14 Likes