Strategy Beginner: Social Security, Medicare and Retirement

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1.
Self-employed individuals must pay all their Social Security taxes themselves.
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True. If you are self-employed, you must pay all Social Security taxes yourself, including the portion that an employer would otherwise pay on your behalf.
2.
Social Security benefits are based on financial need.
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False. Anyone who pays Social Security taxes can collect Social Security benefits if they have enough credits.
3.
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.
4.
One possible solution to the Social Security problem is to decrease the retirement age.
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False. One possible solution is to increase the retirement age so that more Social Security tax money can be collected and less can be paid out.
5.
Your Social Security benefit will be less if you retire before full retirement age.
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True. If you choose to retire before your full retirement age, your benefits will be reduced.