GERO 200 Lecture Notes - Lecture 18: Medicare Advantage, Medigap, Plastic Surgery
Document Summary
Employee is financially responsible for the pension. Retiree does not receive payment from former employee. Pension amount is based on employee"s investments. Traditional gets taxed at the end of the year after you claim it, because it"s your income. Roth gets taxed yearly when you save it but not when you claim it as you income. Same type of thing regardless of letters at the end. You choose what you want to invest in. 6% of paycheck, 3% of paycheck, etc. You receive stock dividends when you retire. Goes with you wherever you go and whatever job you have. Higher-income older adults rely more on savings and assets for income. Assets include stocks, bonds, checking and savings accounts, business income. For most older adults, the most valuable is home ownership. 80% of us adults age 65+ own their home. Can be a source of income through reverse mortgage.
