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Retirement Can Come with Unexpected Costs - MSN.com
Unexpected expenses catch many Americans by surprise in retirement. One of the largest of these is the cost of Medicare Part B. The current cost of Medicare Part B for 2025 is $185, but is expected to increase to $206.50 in 2026. A common question the Social Security advisors hear at the AMAC Foundation is, “I already paid for Medicare, why am I being charged?”
The Medicare taxes we see deducted from our paychecks are only for Medicare Part A, which is why it is free when you qualify for Social Security benefits. The standard premium most beneficiaries pay is only 25% of the cost of Medicare Part B; the government pays the other 75%. If you don’t enroll in Medicare Part B at age 65 and you don’t have creditable employer insurance coverage, you will be charged a 10% penalty for every year that you delay enrollment, and it never goes away. Higher incomers are expected to pay a larger percentage, and they do, as a result of the “Monthly Related Income Adjustment Amount” known as IRMAA.
According to the article by Cara Danielle Brown, the largest unexpected expenses are Medicare Part B, and the fact that you need additional coverage (Medicare A & B only cover 80% of expenses), coupled with the fact that long-term care isn’t covered by Medicare, many folks elect to contract for a separate insurance plan. Under current law, your Social Security benefits may be taxable, and you might underestimate how long you expect to live, leading you to take your benefits too early. All of these factors tend to compound the difficulty in managing finances in retirement. To read Ms. Brown’s full article, click here …
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