Thinking long term with your social security benefits

SAN FRANCISCO (KGO) -- Here is some advice young people seldom hear.

Check your social security account and the changes to the system.

Those who do not check could be out substantial money.

Social Security pays when you and your family need it most: When you are incapable of working, when you die and your family needs support, and of course when you retire.

And that is why you need to keep track with what is going on with your account.

Morgan Stanley Vice President and family wealth advisor George Noceti spoke to 7 On Your Side's Michael Finney.

Also, Noceti provided additional information on changes happening to retirement and medicare in 2020:

Retirement Plans

You'll be able to stash $19,500 in your 401(k) plan, 403 (b), Thrift Savings Plan and most 457 plans. That's up $500 from this year.

If you're age 50 or older, so-called "catch-up" contributions allow you to save an additional $6,500 in each of these accounts-also up $500 from this year.

Social Security
According to the Social Security Administration, the average Social Security benefit in 2019 was $1,356.05 per month. This will rise an extra 1.6% in 2020.

Medicare
It's worth noting that while you'll get 1.6% more from Social Security, you'll pay 6.7% more for Medicare-or at least the standard monthly Part B premiums.

They'll increase to $144.60, up from $135.50 in 2019.

Health Care Tsunami
It's important to remember that these rising medical costs are part of a far bigger problem that retirees are likely to face.

Each year, Fidelity Investments, the Boston-based asset management firm, estimates out-of-pocket medical expenses for the average couple retiring at age 65.

The figure for 2019? Hold on to your hat: $285,000. For single retirees, the health care cost estimate is $150,000 for women and $135,000 for men. You can be sure these figures will rise another few percentage points in 2020.

Watch the video above to see the entire interview.

Take a look at more stories by Michael Finney and 7 On Your Side.

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