Social Security and Medicare

Jonathan Lachowitz, American Citizens Abrpad's specialist on Social Security questions, has highlighted several articles on this topic. Recent articles in Money Magazine explain in very comprehensible language why you will be receiving less and be taxed on more to keep Social Security and Medicare systems going in the future.

Did you know that the "affluent" – those whose total income, including half of SS benefits, exceeds $25,000 – are taxed on at least half of their SS benefits, and quite likely more? Medicare covers only people resident in the US, of course. But many Americans abroad who consider possible or probable return to the US at some point, or whose American health insurers insist upon it, sign up for Medicare Part B (as well as the Part A, for which people who qualify for Social Security are automatically enrolled). Already "high income" retirees must pay a higher rate for Medicare Part B than those less well off. But predictions are for higher costs for less coverage in the future.

Read helpful hints on how to structure your financial planning in relation to these
trends at: http://money.cnn.com/2008/09/19/retirement/save_social_security.moneymag/ind ex.htm

AARO Primer on Social Security and Medicare
The Paris-based Association of Americans Resident Overseas (AARO), a sister organization to ACA and FAWCO, has just issued an excellent primer on "Social Security & Medicare for Americans Abroad". Written in comprehensible English by a committee headed by Thomas Rose, an American lawyer who has been AARO's lead person in this area for many years, the primer provides a solid background understanding of various subjects that may affect entitlement to Social Security and Medicare for overseas Americans. You can order and download the pamphlet online at a cost of 6 Euros via AARO's website: www.aaro.org

Overseas Americans—Dale Finlayson