My

last column discussed a RICP Retirement Income Literacy Survey which left a hefty majority of Americans (74%) realizing how little they know about retirement planning. Did you take the survey? If not, you might want to stop and do that. HYPERLINK “https://retirement.theamericancollege.edu/ retirement-101/retirementincome-literacy-quiz” https:// retirement.theamericancollege. edu/retirement-101/retirementincome-literacy-quiz)

I promised to cover the survey in future columns, so we'll begin that today. The survey has 38 questions; I will not cover them all, but let's dive in and see what we can learn from this challenge.

Question 1: A 65-year-old man has an average life expectancy of:

Answer: According to the Social Security Administration, a 65-year-old man today can expect to live to age 84.3. I would add, though, that if a man is married at age 65, that life expectancy actually rises for a 50/50 chance of living into his early 90s. Married couples – or people who live with other people – live longer. The chances of a single person not getting proper medical care are greater, and I choose to believe that simply having others around us is good for our health.

Question 3: (Yes, I skipped #2.) A single person who is likely to live to age 90 is generally going to be better off claiming Social Security benefits at age…

Answer: The correct answer is 70, which is the age at which the growth of Social Security benefits stops. (That's Question #4.) One factor in determining when to choose Social Security benefits is life expectancy, because this affects total benefits provided under the system. Delaying to age 70 is a good idea if the higher benefit is expected to be paid for a long time—as in this case. Obviously, though, most people don't know how long they will live. And for a married couple the larger benefit is paid for the joint lifetime—so the couple's joint life expectancy should be considered when thinking about this question. Another way to look at the claiming question is how can you improve your retirement security? Deferring Social Security can do this as deferring “buys” more lifetime income that will receive inflation protection. In short, I often suggest that for a married couple, the person with the lower benefit should draw early; not necessarily at age 62, but earlier than the person with the higher benefit. That leaves the larger benefit to grow, thus potentially providing a greater long-term income to the household.

Question 6: Continuing care retirement communities (CCRCs) are different than a 55-plus housing development in that CCRCs always offer…

Answer: A range of care from independent living to nursing care. These communities are unique in that they afford residents the opportunity to plan ahead for what might happen to them medically. What's typically offered is a range of care from independent living to memory care to nursing care. This can be a beautiful option for any two people who depend on each other, such as a married couple or two siblings who have chosen to grow old together. Say one member of the pair needs skilled nursing, while the other is able to live independently; they're both there on the same grounds, and social continuity is afforded. Starkville doesn't truly have a CCRC, but I surely wish we did.

Question 7: Traditional Medicare will cover which of the following medical expenses?

Answer: Wellness visits (not dental care or hearing aids). Chances are that any of you who are on Medicare got this one correct, while those of you below “a certain age” did not. And planning for these expenses in our later years is absolutely critical to financial planning. I can answer basic questions, but I have a senior expert to whom I refer my clients for the details. A costly mistake in this arena often cannot be undone at all.

Question 8: True or False? Medicare supplement insurance policies are most commonly purchased to cover the deductibles and copays that are charged under Medicare Parts A and B.

Answer: This one is true. For those who are in Traditional Medicare, there are annual deductibles to both Part A (hospital coverage) and Part B, as well as certain co-pays. One way to limit unexpected out-of-pocket costs is to purchase a supplemental policy. The most extensive policies cover almost all deductibles and copays. Note however, that the supplemental policies will not pay for services that are not covered under Medicare, like dental coverage and hearing aids. For people who are planning to retire from a State of Mississippi job, I strongly recommend keeping your Blue Cross policy when you leave employment, both as a health plan until you reach age 65 and as a supplement after age 65. All supplemental polices are most definitely not equal, and Blue Cross – though not the least costly premium-wise – has shown to be the best overall plan in many cases.

So how are you doing so far? These are not all easy concepts, but they are critically important and they apply to almost every one of us. Have you taken the quiz yet? Have I piqued your interest? Give it a try and we'll talk more next time.

Barbara Runnels Coats, FICF, RICP.