Manage life, health and wealth while working past 65 webinar

Video Duration: 51 minutes, 32 seconds

Webinar intro: Elapsed time 0 minutes, 0 seconds [0:00]

Hi, I'm Mary Stork, and I'm the senior vice president general manager for USAA's Retirement Solutions. I've been at USAA for 18 years and I'm a proud military spouse and daughter. Today, I'm excited to be able to spend some time with you on the topic of working past 65 and to have a great conversation about retirement planning considerations in general.

In today's session, we're going to discuss some informative topics such as preserving your legacy, a life insurance conversation, considerations for Medicare when you work past 65 years old. Understanding Social Security as you prepare for retirement. And lastly, we're going to leave some time at the end for Q&A. So, we have USAA staff helping behind the scenes of the webinar to answer your questions directly.

Before we begin, let's cover some housekeeping items. We will email the link to this recording to everyone who registered. So don't worry if you miss something or you want to review something, you can always pull it up and watch it again later. As mentioned, a minute ago, we'll leave a little time at the end for Q&A. Please use the Q&A button in zoom to submit your questions any time during the webinar.

If our answer to your question includes a message to call us, it's typically because the answer requires information that would be best discussed over the phone. And as a reminder, don't include any personal or sensitive information in your questions. While your questions are only seen by the USAA team, we want to be sensitive to the information that's shared.

At the bottom of your zoom window, you'll notice a button labeled resources. If you click on that button, you'll find a PDF version of today's slides, along with some links to USAA advice articles that you may find helpful and relevant to today's topic. Lastly, at the conclusion of today's webinar, you're going to see a survey automatically appear with just a few questions to let us know how we did today. Your feedback is appreciated and we want to hear from you.

Webinar panel introductions: Elapsed time 2 minutes, 34 seconds [02:34]

Okay, now I'd like to introduce you to today's amazing presenters from the USAA team. Susan Rednour serves as a Life Solutions Specialist today, and Susan has worked at USAA for 13 years. She's a licensed insurance agent and brings nearly 30 years of financial services experience to the life insurance team.

Stephanie St. James is a tenured health solution specialist who's been with USAA for 40 years. She is a life and health licensed and long-term care certified. Stephanie has received many accomplishments and awards during her time with USAA, and enjoys talking daily with members, helping guide them during their Medicare journey. Scott Rhiger serves as a retirement income specialist and has been at USAA for more than 25 years.

He has life license and holds multiple securities and investment licenses. He also has several designations to include Chartered Life Underwriter, Chartered Retirement Planning Counselor, Chartered Financial Consultant, and Accredited Asset Management Specialist. Scott served in the Air Force as a noncommissioned officer for 11 years, and we thank him for his service to our country. And last but certainly not least, Salma Starkman.

Salma is leading our Q&A today. She is also a licensed insurance agent and has served with USAA for seven, pardon me, for 13 years. Seven of those were directly in our health solutions space. Today, she works passionately every day as part of our Medicare Experience team.

USAA’s Mission: Elapsed time 4 minutes, 18 seconds [04:18]

Let's talk for a moment about USAA mission. One of the many things at USAA that is very special and unique is that we start most of our meetings with our mission. It's important for us to routinely ground ourselves in who we serve, the military community, and why we do what we do. Two things you'll see called out specifically in our mission are empowering our members to achieve financial security and trusted advice. Today's webinar is focus on offering members trusted advice to help you do just that. Achieve financial security and thrive in retirement.

Okay, now let's get to the topic at hand. Today we're focused on helping you during your golden years. You're here with us today because you either are, or maybe considering, working past the typical retirement age of 65 years old, and you're looking to understand what considerations you should be aware of. It's exactly where we're going to focus today.

Before I hand it over to Susan to talk about life insurance and retirement, let's start off with a poll question. The question is going to appear on your screen, and you can select the appropriate response for you. Do you currently consult with a retirement advisor? We'll take a moment to let you answer the question. As you answer the question, know that you're doing your research and that is the first step to planning. And you're here to learn.

So, you're doing a great job, and we appreciate you for choosing us for your trusted advice. You know, using a retirement advisor is especially important when you're thinking about the big event of retirement, especially if you're going to work past 65 years old. There are a lot of considerations that a retirement advisor can help you think through to make the very best decisions for your specific situation.

Okay, let's close out the poll question and dive into today's webinar content. I'm going to pass it over to Susan, who will help us answer the question, where does life insurance fit into a conversation about working past age 65 and retirement?

Life insurance and working past 65: Elapsed time 6 minutes, 28 seconds [06:28]

Susan Rednour: So, thank you, everyone for joining us today. And we're going to be talking about, of course, working past the age of 65. And for my portion here, we're talking about life insurance.

Evaluating needs for life insurance: Elapsed time 6 minutes, 41 seconds [06:41]

USAA does have a practical guide that we like to use. And it spells out the word life. So first taking the “L” in life. Consider your liabilities. Do you have, will you still have a mortgage? Any consumer debt. Any business debt. You know, there's been a trend in the past decade of individuals, refinancing mortgages to get a very low rate.

But now you will have that in on into retirement. So that is something to consider when it comes to life insurance. Now let's take the “I” in life that will be income replacement. Do you have income that will go away or will it continue? Do you have a pension? Are there survivor benefits on that pension? And are there age restrictions or limits to when that pension will stop paying at certain ages?

How about Social Security? The eligibility of your beneficiary is very much something to consider, not necessarily your eligibility for Social Security, but if your beneficiary is eligible based on their age, dividends, rental income, will that continue? If so, then yeah, factor that in. Now let's take the “F”. F is something we're all going to be faced with. And that's final expenses.

Lastly, the “E” in life is education. And for this audience I'm going to say it also does consume estate planning. Where will there be estate taxes? Some states do have estate tax costs that your state or your beneficiary might have to pay. Federally, the limits are a lot higher based on what we know today. But of course, those could always change.

Is your will up to date? Do you need a trust? USAA does have trusted professionals and resources, so if you do have questions about that, please feel free to reach out. What is your need? Or if you're forward thinking? Forward planning? What is your need projected to be? If you're working past the age of 65, and what are the resources that your beneficiary will have and or need should you pass? Key takeaway here is review your plan annually is a good, good guide, good rule of thumb or when major life changes happen, like retirement. That's a big one.

Moving on. We're going to be talking about assessing your life insurance coverage. How much is it? How much coverage do you have or will it be if you work past the age of 65, while you're working it's not so much of a consideration. You know what you have because a lot of people are going to rely on group coverage. But what will happen after the fact? The best advice I can give in a scenario like that is make the best decision based on the information you have today. That's all we can do. No one knows the future.

Another question to ask yourself is who is the coverage through? Who owns it? Who controls it? The owner controls it. Is your coverage owned by you? Is it owned by a spouse, a former spouse, a parent, a business? In the case of group, is it owned by your employer or the group?

Next. What type of coverage is it? Is it group? Again, that's usually employer sponsored. Is it accidental? You know, if you were to pass of a disease, cancer, heart disease or something like that, those are common, accidental coverage probably will not pay out. That's why it's called accidental. Is it a term policy? A term policy will cover you for a particular time-period when is that term due to end? Is it a permanent policy? How long have you had it right? How long will it last? We discussed that with the term. But even with your employer coverage, how long will that coverage last?

Lastly, here are additional benefits, riders or options that are attached to your existing coverage? We talked about, the term expiring, the contract expiring on a whole life.

There are some whole life policies that end at age 90. Now, most of your newer policies today, they do go past that 95, 100, 120. Every contract is different. So please review that information. Does your, policy pay dividends? Is there a long-term care rider on it? That is a very hot topic today. There are some policies that do have long-term care riders.

They are becoming very popular, but they are not inexpensive and can be difficult to qualify for. So again, reviewing what you have in those riders; an accelerated death benefit rider is also very common in a lot of, plans. That is an option that will allow coverage to pay out prior to someone's passing. Thus, the death benefit being accelerated.

How about options for adding additional coverages? Some policies may have features written into them that allow you to purchase additional coverage without having to medically qualify for it at certain life events or ages, or certain times in your life. So, review what you have for that. Key takeaway here is not all contracts look the same and look for what are the specifics of yours? Are there exclusions? Moving on.

Employer-provided life insurance: Elapsed time 13 minutes, 22 seconds [13:22]

Let's talk a little bit about a very popular type of coverage. And that's understanding your employer sponsor group life insurance. USAA’s stance is going to be, take it. It's free. It's a benefit. It's probably one of the reasons you might have chosen to work for that organization. But the basic can vary and in a great way from employer deployer, excuse me, employer to employer.

Some of the basic may be enough. It may be more than enough, and it may be not even close to enough. There is, a different type called supplemental that your employer may offer as well. Supplemental can be purchased, and it usually requires some medical questions. And of course there will be an additional cost to it. How long is that employer coverage going to last?

In other words, how long can you keep it? Is it contingent on you being employed? Can you take it with you when you retire or separate? If so, how long? I know there are some very popular federal plans that will continue if you elect the option to up to certain ages. Age 65, age 70. So those are things to ask your HR or your employer representative, to find out what your particular plan covers. So, check yours out.

What are the costs? Generally, a group plan is going to rise with age. That's just how things are factored in. That's the nature of the beast. A huge thing to consider. And if you're taking notes, I want you to jot this word down. That's portability or portable. It may be called in your in your plan.

Portability means you can take that coverage with you when you leave that employer, whether it be retire, or you just decide to go to a different employer. Can you take that coverage with you? Now you will, you will, you will, pay the employer's portion of that when you do. So, it's not going to be at the same pricing in most cases, but it's non underwritten meaning you don't have to qualify for it.

Not everyone is going to qualify for life insurance. So, this is a good way to be able to take some coverage with you. I know I worked with an individual who was leaving. He was going from one employer to the next, and he had coverage on his spouse. His spouse was not able to qualify for coverage based on her health condition, and so he was able to port that over or still have coverage for her.

She was perfectly able to hold down a job. So, if her income were to have gone away, you would have lost that. So, he did need to have that coverage. She did not have to medically qualify for it. And so, you know, that portability actually saved them. One extra note I do want to bring in here is in understanding your group coverage is where are you working? Right.

Are you we're going to have a lot of varying scenarios here. Are you working in the US? Life insurance is governed by each state's insurance commissioners and their respective laws. If you are considering living or you are currently living and residing outside of the U.S., that could impact your ability to get coverage. So again, that portability may cover you as well. So that that's a big factor.

Key takeaway here with employer sponsor group life is going to be yes. Take it. Always take the basic. USAA stands behind that.

Moving on then let's talk about exploring some options outside of your employer coverage. I mentioned before, what if your employer coverage isn't enough? Again, review any individual policies that you may have and the considerations in there for maybe getting, some additional coverage. But let's say you don't have, any. Then you may have to start from scratch, but, talking about policies, policies that you do have.

Excuse me, a conversion privilege conversion means if you have a term policy, they can take your health and move that some or all of that coverage over into a permanent policy without having to medically, medically qualify. Is there a guaranteed purchase option? What that means is that it will allow you to purchase additional coverage, not converting, but purchase additional coverage over and above what you already have.

Is it the right type? Is it the right amount? Right. Let's go back to the need that we talked about earlier. Situations change over time. It might have been the right type and amount when you got it. But what if your situation has now changed. Did you get a small whole life policy as a child that maybe your parents gave you?

Boy, what a gift that is? That's a permanent plan. That should be good, but do you need additional term? Let's talk about some riders. A long-term care rider, which I mentioned a few moments ago that will cover some, as it says, excuse me, that will cover long term health care considerations as we age. Obviously, health doesn't always get better.

And what if you need to be, have assisted living or go into a nursing home? That is what a rider is meant to cover. Now all plans are going to be different. It may be a different dollar amount. It may be a percentage of a certain number. That's why it's important to review the policy that you do have and understand the benefit.

An accelerated death benefit rider I did mention earlier as well. Those are very common in a recently issued policies. Health considerations. For most life insurance policies, you will have to medically qualify. And let's face it, as we get older, our health doesn't generally, get better. So, I had a scenario recently where I worked with the gentleman who said my cardiologist says I'm perfectly fine now after my triple bypass.

And that's wonderful, right? We want that to happen. And those types of individuals can be very much insurable, but you can bet it's not going to be the same at the same cost as someone who has not had a triple bypass. So, you know, keep in mind you will have to medically qualify for a life insurance policy.

Key takeaway here is going to be if you feel you need it or will need it at a later time, get it while you are in good health to avoid higher cost or the possibility of being declined based on health as we as we age.

Navigating the transition from working to retirement: Elapsed time 21 minutes, 12 seconds [21:12]

Navigating the transition, let's just say that's what we're here talking about today. How do we make that transition from, working whether you're retiring prior to 65 at 65 or after. It's okay to overlap coverage. Again, as I mentioned, the younger you are, the healthier you are, the cheaper coverage is going to be. If you have some concerns, it is important to reach out and speak to someone. Again, reviewing your policies and considering what your need might be at a later point.

If you do want to overlap coverage, that's very acceptable. Some people have questioned, well, I have a policy now. I didn't know I could get another one. Absolutely, you can. You will have to go through that, that underwriting process. But it is it's very vital to look at those things today. Transition early, right. I have a favorite saying, it is easier to turn a ship at sea than it is in port.

You know, please feel free to reach out to us now. We would love to give you some guidance. If you do have some questions about navigating working past the age of 65 with your life insurance needs. Key takeaway here is if you are forced to into a retirement that is unplanned prior to the time you were planning on working, usually that's due to an unforeseen health reason.

You know, that could really blow the budget. Because if you transition early, you can keep the costs down. I hope I've given you some useful information and as always, will encourage you to reach out. That is why we are here. We would love to share any knowledge we have about your particular situation. Now, I would like to introduce Stephanie. She is going to be discussing some Medicare and health care topics. Stephanie.

Medicare and working past age 65: Elapsed time 23 minutes, 23 seconds [23:19]

Thank you. Susan. Welcome to Medicare. So, turning age 65 can be a milestone birthday with lots of choices about how you will access your health care. USAA has been providing Medicare products for over 30 years and helping people navigate their health care options. More people are continuing to work past age 65, and there are things you need to know.

For example, what do I need to sign up for? When? Also, what do I need to know about penalties? Most folks will enroll in Medicare Part A and Part B for their health care when they turn 65. You will enroll in Medicare through Social Security, either in person or online. You will also need to enroll in a prescription drug plan known as part D.

Medicare enrollment timelines: Elapsed time 24 minutes, 13 seconds [24:13]

You are eligible for Medicare the first day of the month. You turn 65. There is a seven-month window to enroll three months before your birth month, the month you turn 65 and three months after. This is referred to as your initial enrollment period. Think of it this way you only turn 65 once, and you only have one initial enrollment period.

If you miss your initial enrollment, you could be penalized. We certainly don't want that to happen. So, you're planning on working past age 65. How do the rules change for you? The situation is a little different for individuals working past 65 and choose to remain on their employer health plan. According to Medicare, most employer-based health plans with more than 20 employees are usually considered large groups and are creditable coverage.

If you have creditable coverage, you can delay enrollment in Medicare with no penalty. So why would I want to delay Medicare? The simple answer is cost. You're likely paying a small percentage of your group health insurance premium. Most employer plans are pretty good and may have better prescription coverage. For example, I spoke with a member that takes an expensive medication.

On his employer plan, he's got a $7 co-pay. When he switched to Medicare, he finds out the retail cost of that drug is around $800 a month. Now, he's not having to pay that full 800, thank goodness, but he will be paying a lot more out of pocket than he paid on his employer plan. Also, most employer plans offer coverage for dental and vision, which are not covered by Original Medicare.

Example for someone working past 65 years old who only covers themself on their employer health plan: Elapsed time 26 minutes, 10 seconds [26:10]

Let's walk through a couple of scenarios that come up all the time. So, you're planning on continuing working past age 65 and you only need to cover yourself when your employer plan. What do you need to know? Well, there's usually no premium for part A hospital coverage, so most people go ahead and enroll. In part A, the exception would be if your employer plan is an HSA. That's a health savings account.

These are high-deductible plans where you contribute pre-tax dollars. The IRS has strict rules about having any other health insurance, including part A, so you will likely hold off on enrolling in part A if you're still contributing to the HSA. Or maybe stop contributing to the HSA at least six months prior to enrolling in Medicare Part A or part B, you can look up IRS publication 969 for more details.

Also, you'll want to consult your tax advisor. Because part B has a premium, most people will postpone or delayed part B until they retire or leave their employer plan. In 2026, most people will pay $202.90 a month to the government for their part B premium. You may pay more for part B and part D the drug plan if your income is high.

This is called IRMA. So, who's IRMA and why is she taken more of my money? IRMA is Income Related Monthly Adjustment amount. So, Social Security will notify you of the amount you will pay. The amount you will pay is based on your modified adjusted income from two years previous. So, every year they're going to look back at your income from two years ago to determine the amount you will pay that year.

The good news, I guess, is most people will eventually make less after retirement and you'll go back to paying the standard amount. Losing your employer plan will create a special enrollment period that will allow you to enroll in Medicare again, no penalty.

Example for someone working past 65 years old who covers a spouse who will age into Medicare: Elapsed time 28 minutes, 30 seconds [28:30]

Another situation is where you plan on working past age 65, but your spouse will age into Medicare prior to your retirement, and you have him or her covered on your employer plan. So, this situation is not the same for everyone. Your spouse usually has the option of leaving the employer plan and going on to Medicare, or they may be able to stay on your employer plan until you retire. You'll want to do some homework to determine which option is the most beneficial for your situation. Again, check with your employer.

Confirm that coverage is creditable by Medicare standards. Verify your premium with and without your spouse to evaluate the cost. Consider the cost savings of remaining on your employer plan and delaying enrollment in part B, especially if you're faced with IRMA. And I'm going to circle back to this one. The other thing is your spouse may choose to leave your employer plan and go fully on Medicare.

They may still have the option of remaining on your employer dental or vision plan. Remember, original Medicare does not cover non-medical dental or vision, and in order to avoid a future penalty, they will likely need to enroll in a Medicare Part D prescription drug plan for an additional monthly premium. So, here's my IRMA story. I spoke to a member who was under age 65.

Her spouse is getting ready to turn 65, and they had questions about enrolling in Medicare. Because he had some costly upcoming surgeries, they figured being on Medicare would be less out of pocket. Well, we started comparing and we discovered she is in the highest income bracket. And because of IRMA, her spouse would be paying nearly $600 a month for part B and nearly $80 a month for part D.

Oh my gosh, Holy cow. Even if she reaches the max out of pocket, they will still be paying less on their employer plan. And remember, IRMA is a two year look back. So, if she works another four years, that six years of IRMA, you know, I'm so thankful that I had the opportunity to talk to them before they enrolled him in Medicare.

It's important to talk to a licensed insurance agent when you turn age 64.5 to discuss your unique situation. If you continue to work past age 65, you'll want to meet with that licensed agent again about three months prior to leaving your employer plan. It can be a bit overwhelming and confusing, and that's why we're here to help guide you through your situation.

Thinking about retirement is all about planning. So, let's continue the conversation and let's hear from Scott, who will share information related to Social Security and retirement.

Thank you. Stephanie. Appreciate that. Before I start my presentation, I want to thank each of you for taking time out of your day to learn more about how the financial decisions you make today can affect your retirement going forward.

Let's talk about Social Security: Elapsed time 31 minutes, 44 seconds [31:44]

Let's talk about Social Security. For most people, Social Security is the majority of their income in retirement. 53% of married couples and 74% of unmarried persons receive 50% or more of their income from Social Security. Congratulations to those in the audience that are still working and have delayed taking their Social Security benefits. If you're contemplating taking Social Security now, pause for a moment. I have some great information to share with you.

The decision about when to start receiving benefits is critical. For many, it's a life altering, permanent decision. Yet often retirees do not seek advice from a professional. We're here to help you simplify your decision making so you can make the right choices. We can help you avoid common mistakes, such as failing to apply for benefits, applying to early, not understanding the interplay of earned, spousal and survivor benefits, or failing to understand the long-term impact of decisions made today.

Baby boomers turning the age of 62 at the rate of nearly 12,000 a day. Social Security is more complicated than people realize, and the strain on Social Security personnel will increase over time. Keep in mind, Social Security is only able to determine your benefits. They're not able to discuss claiming strategies.

Now, members often ask, Scott, when should I claim my benefits? Take it now or later? If I don't take it now, I'm leaving money on the table. Let's look at a strategy where you delay benefits. If you were born after 1960, your full retirement age is 67. This is the age of Social Security determines what your benefits will be. This slide is a hypothetical example. At age 67, you'll get $2,000 per month.

However, you can claim benefits as early as age 62. Claiming at age 62 will result in a 30% reduction, giving you $1,400 per month. Social security will allow you to delay benefits to age 70, resulting in a 24% increase, giving you $2,400 a month. Question. what could you do with an extra thousand dollars per month? I give this example, let's compare someone taking Social Security at age 62.

They'll get the $1,400 per month, and someone at age 70 getting $2,400 per month. Let's assume they both live to age 90 and no cost-of-living adjustments. The 62-year-old will receive a total of $470,400 over 28 years. The 70-year-old will receive a total of $576,000 over 20 years. That's a difference of $105,600. Now, the definition for delayed gratification is the ability to resist immediate pleasure or a more desirable long-term reward.

The decision to take Social Security now or later should not be taken lightly. USAA Retirement Income Team specialists can help you determine the right age to claim your benefits.

Delaying Social Security: Elapsed time 35 minutes, 24 seconds [35:24]

Now, delaying Social Security until age 70 does not mean working until age 70. There are plenty of ways to retire and still delay claiming until 70 in order to maximize your lifetime benefits.

Now, I encourage each of you to register for Social Security website, ssa.gov to review your benefits. Now other strategies could include, I'm divorced, should I claim my own benefits or my divorce spouse's benefits? I'm a widow and now remarried. Should I claim my own benefits, my deceased spouse's benefits, or my new spouse's benefits? Or, I'm eligible for Social Security and have dependent children? How much will I receive per month?

At USAA, we have retirement income team specialists who can assist you. Our specialists are well-versed in Social Security claiming strategies. Keep in mind that Social Security benefits also generally increase with inflation. This helps you maintain spending power during retirement. Your decision will depend on many factors, such as personal health, longevity, and available financial resources, both for you and your survivors needs. Your decision about when to claim Social Security is too important to leave up to chance.

Try the Social Security calculator: Elapsed time 36 minutes, 53 seconds [36:53]

Now, for those in the audience that like to navigate on their own or just need a quick answer, USAA has provided a Social Security calculator on usaa.com. This is a user-friendly tool. Just enter your estimated benefit and use the slide bar to determine your monthly benefit. The calculator is for both married and single.

Now at USAA, we believe a balanced strategy between growth, income, and protection is the best way to manage the most common risk to retirement. So, some things to consider.

Beyond Social Security, financially planning for retirement: Elapsed time 37 minutes, 29 seconds [37:29]

Create a budget. Know where your money's going. List your expenses as needs, wants and wishes. Now needs are the essential expenses to maintain your home. Wants are the things you spend money on that aren't necessary to survive and wishes well. You have sufficient resources for the things you wish for in retirement. Save and spend less. Take advantage of 401K and IRA catch up contributions also, employer matching. Review your portfolio. Make sure your allocation meets your risk tolerance. Ensure you have enough guaranteed income to cover your essential expenses and retirement. And also monitor your plan at least annually. Let's face it, life can get messy. And when it does, will it affect my retirement?

Start your personalized retirement strategy: Elapsed time 38 minutes, 28 seconds [38:28]

Now retirement planning can be overwhelming. Most of us find it difficult to get through the week. Dealing with work, family, medical appointments, paying bills, and perhaps doing yard work on the weekends. Please take time in the next few days to call USAA and speak with the USAA Retirement Income Team specialist.

They will create a strategy that's personalized for you. Specialists do not work on commissions, and specialists are trained to discuss Social Security strategies, lifestyle needs, wants and wishes, income resources and investment assets. I want to thank each of you for your time. This concludes my presentation. And now I hand it over to Salma. Thank you, Scott, for that excellent breakdown.

I'd love to start us off with a question for our audience. Would you like a call back from a USAA retirement income specialist? We know we've shared a lot of great information so far, but if you're hungry for more, we're always here to help. Select yes or no. On that same subject, I'd love to share even more resources for you.

And if you open up your camera app on your cell phone, if you have it available, you'll be able to scan that QR code on the left side of your screen and access schedule a call. That's a tool that will help you speak to a retirement income specialist at a time that's most convenient for you. If you don't have your cell phone handy or you're using it to view the webinar right now.

Not to worry, these resources are also available for you. If you look on your window and go to the resources tab, you'll find the documents section where you'll be able to look at all the slides from today's presentation. If you prefer to talk to someone directly or right away, you can't wait, I understand that to, go ahead and call (800) 531-3392 between the hours of 7:30 a.m. to 8 p.m. central time, and we're happy to talk with you.

Another resource I'll share with you is usaa.com/retirement. And you can learn even more and build upon what you learned today. The last resource I'll share with you is going to usaa.com/advice. For those of us that have our cell phones out. And you have that camera app still handy. Go ahead and take a picture. That way you can reference this later.

We have a section in there for you called Life and Health, and also retirement. You can read articles and get information that might answer your questions further.

Q&A: Elapsed time 41 minutes, 25 seconds [41:25]

Speaking of questions, now let's get to our Q&A. Stephanie, I'd love to ask you your first question. It says, hi, Stephanie, I'm working past age 65, but I'm self-employed and I don't have employer coverage. What should I do?

All right, so this is a great question. And actually somewhat simple. More than likely, if you're self-employed, you're paying a high premium for your health insurance, and many of those plans have high deductibles. You're going to love Medicare. You will enroll in Medicare during that initial enrollment period. Remember, that's that seven-month window around your 65th birthday.

Remember three months before your birth month, the month you turn age 65 and three months after? Also, keep in mind you may have IRMA.

Thank you. Stephanie. One more question for you while I have you. What if I plan to work past 65 years, but I suddenly lose my job?

You know, this happens. We can have a plan, and it can suddenly change. As soon as you know your employer coverage is going to end, you'll want to reach out to Social Security and get enrolled in part B.

And of course, I'm assuming you delayed part B because you were working and you had employer coverage. Ideally, you would want to start this process about two months prior to losing your coverage, but you just may not be able to do that. You just want to make sure you start that process as soon as you can. It can still take Social Security 4 to 6 weeks to have part B confirmed.

Now you're worried. Oh my gosh, what if I have a gap? I don't have coverage. Before the part B takes effect. Don't really worry. You could opt in for COBRA through your employer. Thanks, Stephanie. Let's move on to Susan. I see a couple questions for you. The first one is Susan mentioned that it's better to purchase life insurance when you're younger.

How much does it cost later in life? That's a hard one to answer. As I mentioned, you know, your age and your health and even your gender can affect pricing. So, the amount, the type of coverage, those are all factors that we use. And of course, everyone is going to have a budget to work with.

So, I wish I had, you know, a magical dollar amount that I could give you but, there really isn't. Everyone is underwritten individually. And so my suggestion would be to reach out and get a quote. Thank you. Susan. Another doozy for you. What do I do if I cannot medically qualify for life insurance?

Boy, that's a hard one. And sometimes there are some variables in that one, too. You know, there are companies that will not underwrite certain situations, certain illnesses and certain health care, considerations. So again, reach out if you've been declined somewhere else, you will be asked that. But it doesn't necessarily mean you will be declined everywhere. And unfortunately, there are those scenarios where it could be that, yes, you could not medically qualify.

There are, types of plans that are non-underwritten. So that would be a question to ask. And of course, USAA does have access to those resources as well. And reach out on find out. Thank you, Susan. It sounds like if at first you don't succeed try, try, try again. Scott, you're next up. Will Social Security run out or be reduced?

So that's a great question. So, if you keep your eyes on the news, you might have read or heard scary headlines that Social Security trust funds are projected to be exhausted in the year 2034. So, with the conclusion that Social Security will soon be bankrupt. Well, the first part of this may be true. The second part is not.

Under current law, Social Security will never completely run out of money and will never be bankrupt. To learn why? Let's dig into some details here. So, regarding the question whether Social Security will ever completely run out of money, the answer is no. This is the short answer as long as current law is in effect. The reason is that Social Security benefits are funded by two sources, FICA taxes, which are paid by workers and their employers that participate in Social Security, and also the Social Security trust funds.

So as long as workers and their employers are paying FICA taxes, there will always be a source of money to pay benefits for retirees and beneficiaries. That's the reason Social Security will never completely run out of money and will never be bankrupt. Thank you, Scott. That definitely gives me some comfort but also makes me want to save more.

Here's another question for you, Scott. How much is Social Security taxed? Yes, people often ask this question. So, about 40% of people who actually get Social Security must pay federal income taxes on their benefits. This usually happens if you have other substantial income in addition to your Social Security benefits. So, what I mean by substantial income that could include wages, earnings from self-employment, interest, dividends or other taxable income that might be reported on your tax return.

So, you will pay taxes on your Social Security benefits based on the Internal Revenue Services rules. And so, here's a couple of examples. So, you're a single tax filer. So, if you earn between $25,000 and $34,000 you may have to pay tax or income tax on your Social Security up to 50% of your benefit. If you earn more than $34,000, up to 85% of your benefit may be taxable.

And if you are filing married jointly, you and your spouse have a combined income that's between $32,000 and $44,000. You may have to pay income tax on up to 50% of your benefit. And if you're making more than $44,000, up to 85% of your benefits may be taxable. Now taxes are reduced on Social Security benefits. However, taxes are not going away. And for specific tax questions, please seek, or speak with your tax advisor.

Thank you, Scott. Appreciate you getting so close to doing that too in public. That's always a challenge that will wrap the questions section of our webinar today. But please remember, if you didn't get your question answered here, we are working feverishly behind the scenes to get those questions answered. And if that doesn't do it for you, remember, you can always call us and speak to a retirement income specialist and we're happy to help. Now, I'd love to turn it back over to Mary Stark to close us out.

Closing remarks: Elapsed time 49 minutes, 18 seconds [49:18]

Mary Stork: Thank you, Salma, for facilitating today's Q&A. And to all of our presenters. We recognize we really want to equip you with the information and tools to help you evaluate your own retirement plan as you consider your options if you plan to keep working past 65 years old. Our team is here to help you with all the variables that go into your planning.

And yes, we know that things change today. You might be excited to keep working for another year or two or more, but a few months from now, you may decide you've had enough of being in the workforce and you're ready to fully enjoy retirement. Either way, start with USAA, and we will be here with you on your retirement journey along the entire way.

If you'd like to speak to one of our retirement income specialists, you can give us a call at one (800) 531-3392. Or if you prefer, you can schedule a call at a time that is convenient for you by scanning the QR code. Our retirement income specialist will work with you to determine your retirement needs, and then Medicare and Life insurance agents to ensure all of your questions are answered.

If you want to learn more about retirement income planning, visit our website at usaa.com/retirement. There you can schedule a call, as I mentioned earlier, and you can find materials that will help prepare you for your retirement income strategy. Remember, at the conclusion of this webinar, our survey will appear on your screen. So please take a moment to fill that out and let us know how we did today.

Thank you for spending time with us today across life, Health and wealth. USAA is here to help you thrive in retirement. Thank you so much for watching.

This material is for informational purposes. Consider your own financial circumstances carefully before making a decision and consult with your tax, legal or estate planning professional.

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USAA Investment Services Company (‘ISCO”) provides the USAA Retirement Income Strategy Report (“Report”). The Report provides a snapshot of your current financial position that you may use to help you focus on your financial resources, retirement income goals, and your next steps to creating a plan of action. The Report is intended for discussion and initial retirement income planning purposes only and is not intended to, and does not constitute, legal, tax, or accounting advice.

End: Elapsed time 51 minutes, 32 seconds [51:15]