As millions of working Americans approach retirement, personal finance expert and bestselling author Jean Chatzky offers timely guidance on navigating two of the most critical components of post-career life: Medicare and Social Security.
Her advice is aimed at helping individuals make informed decisions that support a comfortable and financially secure retirement.
💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💰💵
First, Chatzky places strong emphasis on understanding Medicare’s enrollment rules and coverage options.
She warns that missing key deadlines can lead to penalties and higher premiums that persist for life.
Missing Medicare enrollment deadlines — especially for Part B and Part D — can trigger lifelong financial consequences.
Late enrollment often results in permanent monthly premium increases and delayed coverage, leaving retirees vulnerable to higher out-of-pocket costs and gaps in essential medical and prescription drug services.
Related: Tony Robbins sends warning message to Americans on IRAs, 401(k)s
Jean Chatzky explains Medicare parts
Medicare Part A covers hospital services such as inpatient care, skilled nursing, hospice, and some home health services. It is typically premium-free for those who paid Medicare taxes during their working years.
Medicare Part B, which requires a monthly premium, covers outpatient care including doctor visits, preventive services, and durable medical equipment.
For those seeking an alternative to Original Medicare, Chatzky outlines the features of Medicare Advantage plans, also known as Part C.
These plans, offered by private insurers, bundle Parts A and B and often include Part D prescription drug coverage along with additional benefits such as dental, vision, and wellness programs.
She notes that coverage and costs vary widely depending on the plan.
Part D itself provides prescription drug coverage through private plans approved by Medicare, though beneficiaries must still manage premiums, deductibles, and copayments.
To help cover out-of-pocket costs not addressed by Original Medicare, many retirees opt for Medigap policies — private supplemental insurance plans that cover expenses such as coinsurance and deductibles.
Image source: Congleton/NBCUniversal via Getty Images
Jean Chatzky highlights strategic Social Security planning
While Medicare choices play a crucial role in retirement planning, Chatzky places equal importance on making informed decisions about Social Security.
She highlights growing concerns about the program’s future, pointing to projections from the Social Security Administration that its trust funds may be depleted by 2033.
If no policy changes are made, benefits could be reduced by approximately 23 percent. This looming uncertainty makes the timing of benefit claims a critical factor in retirement strategy.
More on personal finance:
- Tony Robbins sends warning message to Americans on IRAs, 401(k)s
- Dave Ramsey has blunt words for Americans on Medicare, Medicaid
- Jean Chatzky sends strong message on major 401(k) changes
Chatzky encourages individuals to understand how their birth year affects their full retirement age, which ranges from 66 to 67 for most people retiring today.
She explains that delaying Social Security benefits until full retirement age can result in significantly higher monthly payments.
On the other hand, claiming benefits early — at age 62 — can lead to a permanent reduction of up to 30 percent. This cut, she warns, isn’t temporary; it affects income for the rest of a retiree’s life.
By emphasizing the long-term impact of early claims, Chatzky urges Americans to carefully weigh their options.
Strategic timing, in her view, is essential to maintaining financial stability and achieving a secure retirement.
Related: Dave Ramsey has blunt words for Americans on Medicare, Medicaid
Jean Chatzky offers advice on claiming Social Security
“Waiting to claim benefits until at least full retirement age is generally a good rule of thumb because your payments will be larger,” Chatzky said.
The timing of one’s Social Security claim significantly affects their benefit amount.
Claiming before full retirement age reduces monthly payments, while delaying up to age 70 increases them due to delayed retirement credits. For example, claiming at 62 could cut benefits by up to 30%, but waiting until 70 can boost them by 8% annually beyond full retirement age, according to the Social Security Administration.
Additionally, if a person changes their mind within 12 months of claiming, they may withdraw their application and reapply later — though they must repay received benefits.
Related: Jean Chatzky sends strong message on major 401(k) changes
