Some question about the US social system
 

Can anybody help me with the following questions for a discussion about the US social system ?

- is 401(K) the main retirement system and what happens if there is not enough saved after retirement ...is there a backup minimum retirement system and is that enough for living ?
- is it correct that most employers pay (partly) health insurance and what has a typical employee to pay by himself for an average insurance (in percent) ?
- my understanding is that pensioners have an automatic insurance system via Medicare. Is that sufficient or are there major gaps (like you could run of money since you have to pay prescription pills all by yourself and so forth) ?


Thanks !

Hawk66;2603094]Can anybody help me with the following questions for a discussion about the US social system ?

- is 401(K) the main retirement system and what happens if there is not enough saved after retirement ...is there a backup minimum retirement system and is that enough for living ?


We have what is called Social Security, which the person pays in to while working and it gives them a small pension as early as 62 years old (at a decreased rate of payment). It is not meant to be able to provide all of a person's retirement income needs though. This is why it is so very important for people in the US to make sure they have the proper investments or other savings.




- is it correct that most employers pay (partly) health insurance and what has a typical employee to pay by himself for an average insurance (in percent) ?


Yes, it is common for an employer to pay part of the health premium for the employees. How much depends on the employer. I worked for a company that paid 100% of the health care premiums. That was unusual. I think in my present company I am paying about 1/3 and the company is picking up 2/3 which is still a pretty good deal




- my understanding is that pensioners have an automatic insurance system via Medicare. Is that sufficient or are there major gaps (like you could run of money since you have to pay prescription pills all by yourself and so forth) ?


Medicare will provide very basic health care but does not include. If there is one thing that is perfectly clear about Medicare is that there is nothing clear about medicare. It is a complicated system. Most people have supplemental insurance to cover what Medicare does not. Medicare does not just cover everything.



Thanks !