NATIONWIDE NEWS Explaining Social Security and Medicare planning
The following information is providedby Nationwide®, the#1 farmandranch insurer in the U.S.* Retirement isn’t often part of the long- term plan for farmers. But it’s still im- portant to think about your long-term financial future. And a few retirement benefits are key components of that future. That in- cludes Social Security and Medicare. Incorporating these benefits into your long-term plans can help firm up your— and your farm’s—financial footing today and down the road. “Farmers needa trustedadvisor tohelp them understand how decisions around Social Security andMedicare will impact their finances,” saidNationwideAdvanced Consulting Group Director George Schein. “Farmers need expertise to help transition their farms to the next genera- tion. And they need to create a source of retirement income.” Knowthe impactsof yourSocial Security choices. Social Security retirement bene- fits are available starting at age 62. But tak- ing your benefit as soon as possible leads to reducedmonthly payments. For that reason, many choose to delay
until full retirement age or age 70, when benefits stop growing. Delaying benefits as long as you can is a good rule of thumb. But that’s not always best for farmers. “Some farmers may not expect to live into their 80s. Those farmersaremore like- ly tochoose thereducedpayments thatbe- ginbefore their full retirement age,”Schein said. “Some farmers may also start Social Security benefits early because they plan to rely on the steady source of income it provides to cover the costs of Medicare premiums,whichgenerally start at age65.” It’s a good idea to talk to a financial pro- fessionalasearlyasyour40sor50stoensure youqualify forbenefits.Youneedat least10 years of taxable income tobe eligible. “Adownsideof today’s tax laws for farm- ers is that some may offset their farm’s annual income entirely and miss out on Social Securityaltogether,”Scheinsaid. “By addressing this while there’s still time, a farmer canmake themost of this import- ant benefit.” Learn more about Social Security dis- ability for farmers fromNationwide’sLand As Your Legacy® teamor get connected to a financial professional who can provide
evenmore personalized guidance. Plan for Medicare coverage. Most U.S. citizens become eligible for Medicare at age 65 if they’re either qualified to collect Social Security benefits, a U.S. citizen or if they’ve been a permanent resident for at least five years. With a few limitations, the federal pro- gram covers a portion of many common medical expenses such as: • Inpatient care • Outpatient care • Skilled nursing care •Hospice care •Durablemedical equipment such as a walker or wheelchair • Preventative benefits such as annual checkups and screenings But there are also exclusions, namely: • Prescription drugs
annual openenrollment window is the key timeforthesedecisions. Itbeginsinmid-Oc- tober andruns throughearlyDecember. “Planning forcurrentandfuturemedical careandhow to pay for it is evenmore crit- ical for farmers because of the physical na- tureof theirworkandalackofqualityhealth care inmany rural areas,” Schein said. Nationwide’s Land As Your Legacy teamcan help further make sense of both Medicare and Social Security for farmers. Get connected to a financial specialist who can help protect your farm, family and future by visiting Nationwide.com/ YourLand. *A.M. Best Market Share Report 2020. Products underwritten by Nationwide Mutual InsuranceCompanyandAffiliated Companies. Not all Nationwide affiliated companies aremutual companies, andnot all Nationwide members are insured by a mutual company. Subject to underwriting guidelines, review and approval. Products and discounts not available to all per- sons in all states. Nationwide Investment Services Corporation, member FINRA. Nationwide, the Nationwide N and Eagle and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company. ©2021Nationwide
• Dental • Vision •Hearing care
Plan ahead to help better af ford Medicare’s gaps. Additional coverage is available fromprivate insurers and should be considered by those 65 and older. The
January 26, 2022 Ag Alert 45
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