For millions of Americans, Social Security and Medicare represent the two foundational pillars of financial security in their later years. These federal programs, established by pivotal legislation, are far more than just government benefits; they are complex systems funded by decades of contributions, designed to provide essential income and crucial healthcare coverage during retirement and disability. However, due to their vast scope and ongoing political discussion, they are often misunderstood.
Understanding the facts about how Social Security provides income and how Medicare delivers health coverage is non-negotiable for effective retirement planning, whether you are decades away from retirement or approaching enrollment age. This article provides a clear, comprehensive overview of the purpose, structure, and essential details of these two vital programs.
Part 1: Social Security—The Income Safety Net
Social Security, officially known as Old-Age, Survivors, and Disability Insurance (OASDI), is designed primarily to replace a portion of pre-retirement income that … Read more