AARP raises red flag on Social Security, Medicare
thestreet.com••business
Key Points:
- Medicare and Social Security face significant funding challenges, with the Social Security trust fund projected to only cover 77% of scheduled benefits by 2033, raising concerns about future retirees' financial security.
- Medicare eligibility generally begins at age 65, creating a health insurance gap for those retiring earlier, who often must rely on COBRA or other temporary coverage options, which can be costly.
- Medicare consists of four parts—A (hospital insurance), B (medical insurance), C (Medicare Advantage), and D (prescription drug coverage)—each with different coverage and premium structures, important for retirees to understand.
- AARP emphasizes that early retirees need to carefully plan for healthcare costs, as Medicare premiums vary by income and most early
