Question

Case 1

1. If Ben continued working until he turned 64, would he be able to claim Social Security `benefits, and if so, what percentage of his full benefit would he receive?

2. If Ben was in an accident and passed away before retiring, would his wife receive any Social Security benefits? Why or why not?

3. Ben is enrolled in a defined benefit pension plan with his employer. How does this differ from a defined contribution program?

Case 2

1. Does Amelia qualify for Medicare now? Why or why not? If not, when will she qualify?

2. Based on Ameila’s circumstances, which version of Medicare do you think would be the best option for her, and why?

3. What programs, if any, are available to help Amelia pay for her Medicare plan when she enrolls if her income is too low for her to afford it?
   O CASE STUDIES Case 1: Ben was born in 1960 and has remained steadily employed since getting his first job at age 17. For the last 28 years, he has been a long-haul driver for a trucking company. He enrolled in a defined benefit pension plan when he was hired, and once he reaches the 30-year employment mark, he can retire with full benefits. After many years of working away from home for weeks at a time, Ben is looking forward to spending more time with his family. Yet, he worries that he might be in a bad accident someday, leaving his wife, who just turned 61, in dire financial straits. His manager has told him that if he wants to continue working after 30 years, he could switch to a local delivery route or a desk job in the office. With those options, he can keep working until he is able to claim his full Social Security benefit. Ben is glad that he has options, but does not know what he wants to do. He thinks that maybe he will work for a few years after giving up his job as a long-haul driver, but is not sure that he wants to work at a desk job until he reaches his Social Security retirement age. 1. If Ben continues working until he reaches age 64, would he be able to claim Social Security benefits, and if so, what percentage of his full benefit would he receive? 2. If Ben was in an accident and passed away before retiring and claiming his benefit, would his wife receive any Social Security benefits? Why or why not? 3. Ben is enrolled in a defined benefit pension plan with his employer. How does that plan differ from a defined contribution program? Case 2: Amelia is a single 63-year-old woman in semiretirement. She worked full time as a nurse at a hospital for 35 years, and now works part-time at a private practice. Although she is relatively healthy, she is not in perfect health. She is slightly obese, takes medication to control her hypertension, and has had cataracts removed from both eyes. She is also starting to feel the first twinges of arthritis and the cartilage in her left knee is deteriorating, which will eventually necessitate knee replacement surgery. Amelia has been able to maintain her health insurance, but it is expensive, and she will not be able to afford it when she retires. She would like to apply for Medicare as soon as she is able to do so. 1. Does Amelia qualify for Medicare now? Why or why not? If not, when will she qualify? 2. Based on Ameila's circumstances, which version of Medicare do you think would be the best option for her and why? 3. What programs, if any, are available to help Amelia pay for her Medicare plan when she enrolls if her income is too low for her to afford it?
   

Answer 1

Case 1

1. The Social Security Benefits for people born after 1960 is by age 67 or later. Yet they can claim their benefits from age 62 years.In these cases a full benefit cannot be taken where they receive only 75% of their full retirement benefits. He will be able to claim it fully if he reaches retirement age and if works till 77 years will get an 8% increase from the actual benefits

2.The Social Security Benefits covers the spouce too.They will receive the benefits of their partner depending upon the score.If the person has died before the retirement age then his wife can receive half of the benefits until she reaches her full retirement age to get 100% benefits.

3.The defined Benefit Pension plan is usually offered by an employer to their employee by providing then a lump sum money or compensation at the time of their retirement .The defined contribution plan is the benefits gained  by the contribution of the employer and employee. Here Ben will receive certain specific amount from the employer without his contributions.

Case 2

1.Amelia does not qualify for Medicare now. She can be qualified for Medicare only at the age of 65.People less than 65 years are not qualified unless they have some disabilities.