Strategy Beginner: Social Security, Medicare and Retirement

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1.
Social Security trust funds invest in _______.
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Government bonds. Trust money not used to pay benefits is invested in special US government bonds.
2.
What types of healthcare coverage does Medicare provide in retirement?
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Hospitalization, prescription drug coverage and outpatient treatment. Medicare is a comprehensive health insurance plan for retirees, covering hospitalization, prescription drug coverage and outpatient treatment.
3.
Social Security retirement benefits have faced financial challenges due to payroll taxes and interest on bonds being insufficient to cover the payouts on their own. To cope with this issue, Social Security has been redeeming _______.
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Asset reserves. At that stage, the reserves are being drawn down and may disappear if a solution is not found.
4.
A(n) _______ allows your spouse or your children to receive your Social Security benefits if you should die.
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Survivor benefit. Survivor benefits let one's spouse and/or children share the money he or she would have gotten.
5.
Your Social Security benefit will be less if you retire before full retirement age.
Choose wisely. There is only one correct answer.
True. If you choose to retire before your full retirement age, your benefits will be reduced.