• As you turn 65, you are eligible to participate in the initial Medicare enrollment process
  • Initial Medicare Enrollment Period
    • 7-month window for initial enrollment
      • 3 months before 65^th birthday month
      • 65^th birthday month
      • 3 months after 65^th birthday month
    • It is important that you complete your enrollment during the initial enrollment time period because Medicare charges late-enrollment penalties.
  • Medicare enrollment options
    • By phone or in person at a Social Security office
    • Online at Medicare.gov

• Medicare Part A and Part B premiums depend on your Social Security eligibility
  • In general, Medicare Part A (Hospital Insurance) is available premium-free for those with 40 credits because of the FICA tax on their earnings.
  • Those without a qualifying work history may still get Medicare coverage by paying the monthly premiums themselves.
    • These individuals must enroll in both Medicare Part A and Part B (Medical Insurance) and pay premiums for both coverages.
  • Individuals who have earned less than 40 credits may still get Medicare Part A, but on a pro-rated premium based on the number of credits earned.
    • Those able to continue working can accumulate the 40 credits and no longer have to pay the Part A monthly premium.
  • Post-65/Medicare insurance options available
    • TRS will mail you enrollment information and a checklist to assist with your Medicare enrollment within 90 days of your 65th birthday
      • Medicare Parts A and B eligibility
        • Benefit recipients deemed eligible for Medicare Parts A and B have an opportunity to enroll into the Medicare Advantage TRAIL Program within six months of their 65th birth months.
        • Benefit recipients who are not deemed eligible for Medicare Parts A and B can still enroll in a standard TRIP plan but will be subject to higher premiums
      • TRIP premium and accessibility information summary

• Your insurance changes at age 65 with Medicare is a good time to reflect on your health, retirement lifestyle, and future plans to consider if additional types of coverages might be appropriate.
  • Additional plans and coverages are made available to retirees through the Illinois Retired Teachers Association (IRTA)
    • Dental and vision plans
    • Long term, short term, and home health care
    • Cancer, heart, and stroke plans
    • Emergency Medical Transportation Coverage

• A retirement pension means you’ll always have monthly retirement income
• You may have to dip into your retirement savings to
  • Manage shortfalls due to rising prices
  • Counteract the effects of inflation
  • Cover unexpected expenses
  • Make large purchases
• Required Minimum Distributions (RMDs)
  • The IRS mandates annual withdrawals from qualified retirement savings accounts, such as 403(b), 401(k), or IRAs, once you attain a specific age.
  • While this provides you with additional income, it also depletes the balance of the retirement accounts.
  • Failure to take an RMD on time results in a significant tax levied on the RMD amount.
  • RMDs are considered taxable income.
• Your savings and pension income may be supplemented or sustained by
  • Working in retirement
  • Protecting your savings from high-risk investments
  • Reviewing expenses and following a monthly budget
  • Exploring the costs and benefits of
    • Long term care insurance
      • Long term care coverage may also be included as riders on life insurance and annuity policies
    • Supplemental insurance products
      • Plans pay for specific health events or treatments in addition to traditional medical insurance

• Health care expenses can be unpredictable and costly
  • Severe or ongoing health challenges may threaten financial security and drain retirement savings
• Consider insurance premiums and out-of-pocket expenses differently
  • Premiums are relatively stable and can be budgeted on a month-to-month basis
  • Out-of-pocket expenses can vary and large outlays are usually associated with major health events.
• Assess your situation and health factors and research coverage plans that may help with unexpected or expensive health issues.

• More than 75% of U.S. adults over age 50 indicate a preference to stay in their current homes as long as possible, but this requires adaptive measures.
  • Falls are the leading cause for seniors not being able to stay in their homes
  • Improve home safety, accessibility, and ease of use with the AARP HomeFit Guide and HomeFit Worksheets
    
    • Research and compare programs that can provide services making it possible to live longer in your home without the need to relocate
      • Home health care and short term care focus on immediate medical and assistive needs during a recovery period
      • Long term care issues are more involved and may include personal care, therapy, and medical care
    • Research and compare plans for the different programs and options available
    • Inform your family of your preferences for care should you face a medical issue or crisis requiring specialized care.

• Prepare an ICOD – In Case of Death or Disaster – folder of important personal business information and documents.
  • Take the time to be prepared and organized by creating your ICOD folder around the major areas impacted by death or disaster
    • Identification documents
    • Life event documentation
    • Essential estate documents
    • Banking information
    • Life insurance policies and retirement account information
    • Assets and liabilities documentation
    • Household expenses, memberships, and subscriptions information
    • Email and social media account information
    • Key contacts list
  • The ICOD Checklist identifies the major areas most often impacted by death or disaster. Download this checklist as a guide to create your own ICOD folder: 
  • Consider, and prepare for, situations where there may be family members dependent on your income for their living expenses after your death.
    
    

Download ICOD Checklist

• The emotional toll of losing a spouse or partner cannot be overstated, but you can help protect yourself during this vulnerable time with prior planning such as:
  • Making sure you are both aware of
    • Family investments and assets
      • Get financial accounts in order with both spouses having access, when possible
    • Possible changes to retirement income and benefits upon the spouse’s death
  • Checking – and double checking – beneficiaries for all policies and accounts.
  • Planning to take your time making major decisions regarding assets or investments after the loss so you make the right decisions at the right time.
  • Having a trusted advisor in place to assist with questions and concerns.

• Create a plan for your final years that includes
  • Considerations about how your health care requirements might impact close family members
  • Remove an incredible burden from your loved ones having to make tough decisions and choices regarding your life
  • Document your wishes about actions taken when you’re reaching the last phase of your life
  • Include your preferences for your end-of-life care
  • Place parameters on the extent of medical interventions and measures to be taken
• Preparing your end-of-life planning documents
  • Determine end of life care and housing plans
  • Make a list of your assets
  • Decide between a Will or Trust for your estate distribution
  • Document your final wishes, including funeral plans and burial arrangements
• Have your end-of-life planning documents where they’re accessible and file them in your ICOD folder (mentioned above)