Feb 16, 2019 3 min read

Longtime Pittsburgh sportscaster Myron Cope would occasionally do a segment he called “shirt pocket notes.” in which he would discuss unrelated things that had been on his mind. Today, we will do something similar and talk about several important parts of Social Security and Medicare.

We discuss Social Security several times a year because it is such an important part of retirement planning. A few weeks ago, as I was reviewing retirement income planning with a couple, we discussed the impact of SS played on their retirement. This is always the first step of retirement planning.

Without the income you need to pay your bills and do the things you worked a lifetime for, nothing else matters.

This couple had done a terrific job saving for retirement. When we were estimating their SS income, over a normal life expectancy for each of them, they will collect between $925,000 and $1,050,000 in benefits. That is a valuable asset, and with proper timing, could get more than $100,000 additional income.

Taking SS at age 62 could reduce their lifetime income much more. Social Security decisions can affect a spouse for more than 20 years.

Anyone born in 1953 or earlier, and who is not already collecting SS, has an option of filing for a benefit that no one else has due to a change in law several years ago. These people still have a right to file what is called a restrictive application, which means you might be able to collect spousal benefit and allow your own benefit to continue to grow 8 percent a year until they reach age 70.

This means you are collecting a monthly check and still experiencing growth in your own benefit. If you started receiving your SS fewer than 12 months ago, you can get a mulligan, pay them back and change your start date.

To be eligible, your spouse must have filed for his or her own benefit. Remember, you may be able to use a former spouse’s record if you were married for at least 10 years before your divorce and you did not remarry. It does not matter whether your ex remarried.

You also may be able to file a restricted application if your spouse is deceased. If he or she died while you were married, you must have been married for nine months unless the individual died by accident. Get more benefits by making the correct SS claiming decisions.

Medicare has some benefits to help keep you healthy. You receive a onetime option to get a preventive physical examination. This initial exam must be done within 12 months of starting Part B. After the first year, Medicare pays for an annual wellness visit. This includes a general health risk assessment based on current health status and medical and family history.

The doctor may order tests that he or she may believe are appropriate, review medicines and recommend referrals to programs such as smoking cessation and weight management.

There also should be a discussion with the doctor about advanced directives and other end-of-life decisions. A plan should be established for health screenings and immunizations. These yearly visits can be a valuable to maintain your health.

Gary Boatman is a Monessen-based certified financial planner and author of “Your Financial Compass: Safe passage through the turbulent waters of taxes, income planning and market volatility.”

To submit columns on financial planning or investing, email Rick Shrum at rshrum@observer-reporter.com.