The View From Unretirement
Should You Trust AI for Medicare, Social Security, or Long-Term-Care Advice?
Retirement decisions involving Medicare, Social Security, and long-term care are complex and often have lasting financial consequences. Many wonder if artificial intelligence (AI) can help make these choices easier. After testing several AI chatbots and specialized services, and consulting with experts, the takeaway is clear: AI can assist, but proceed carefully.
AI tools have become widely used across many tasks, and their ability to quickly process vast amounts of information might seem perfect for tackling financial decisions around retirement. However, mistakes or inaccurate advice could jeopardize your financial security.
Large language models generally do well answering basic questions about Medicare, Social Security, and long-term care. Yet, they lack deep personal insight into your unique situation, which limits their ability to provide fully reliable, personalized advice. AI can also produce errors or “hallucinations” — confident-sounding but incorrect or incomplete responses. Experts estimate we’re still early in managing these AI shortcomings.
Privacy Concerns
Privacy policies and the sources AI uses vary widely. Surveys show many people avoid AI due to data privacy worries and distrust of AI-generated information. Still, financial advisors and companies increasingly use AI to help with retirement investing and spending plans.
AI adoption is strong among Generation X and baby boomers alike. Beyond investing, AI is starting to assist with other retirement-related financial decisions as chatbots improve their reasoning abilities. Specialized AI tools are now available to help with Medicare plan selection, long-term-care insurance evaluation, and Social Security claiming strategies.
Using AI for Medicare Decisions
Choosing Medicare coverage starts with deciding between original Medicare plus Medigap and Part D plans, or a Medicare Advantage plan. AI can explain the pros and cons clearly, helping you understand the options.
Testing seven chatbots showed they generally provide accurate, easy-to-understand comparisons of original Medicare and Medicare Advantage. They cover important points like provider choice, coverage gaps, and cost differences. However, some made small but critical errors—for example, misstating the Medigap enrollment period. Such mistakes could lead to costly missteps because many Medicare decisions are difficult or impossible to reverse.
Among the bots tested, Google Gemini delivered the most detailed, well-sourced responses quickly. Microsoft’s Copilot offered multiple answer modes, from quick conversational replies to in-depth reports with source citations. Still, no AI chatbot fully addressed the potential penalties of switching plans later, a key consideration.
Evaluating Long-Term-Care Insurance with AI
Long-term care costs are high, and many Americans in their 50s and 60s wonder if insurance is worth it. AI can help estimate costs, compare policies, and explain terms, but cannot predict who will need care or future costs precisely.
Specialized AI services like WaterLily analyze enormous datasets to help you understand your long-term-care risks and insurance benefits. These tools can model different scenarios, such as changes in living arrangements or family caregiving, to find efficient financial solutions. Some services offer free consultations to help interpret AI results.
AI and Social Security Claiming
Social Security claiming involves many variables, including your work history, spouse’s benefits, and future income. AI can explain rules and highlight questions to consider, but it currently lacks the precision needed for personalized claiming strategies.
Experts report AI-generated errors when answering complex Social Security questions. Given the importance of this decision, it’s best to consult trained professionals rather than rely solely on chatbots for personalized advice.
Practical Tips for Using AI in Retirement Decisions
- Use the latest AI versions: Newer versions tend to have more up-to-date information.
- Ask follow-up questions: Initial answers may not cover all details, so dig deeper.
- Request sources: Verify the currency and reliability of the AI’s information.
- Review privacy policies carefully: Ensure you are comfortable with how your data is handled.
- Consider paid versions: They often provide better features and privacy protections.
- Avoid sharing personal health and financial details: Use general queries instead.
- Delete your prompts if possible: Some AI platforms allow prompt deletion immediately or after a set period.
- Consult a trusted advisor: Always verify AI-generated advice with a human expert before making decisions.
AI can be a helpful starting point for retirement-related questions, but it should not replace professional guidance. Use AI as a tool to gather information and clarify options, then confirm with qualified advisors.
For those in the insurance industry interested in expanding their AI skills, exploring targeted AI courses by job can be a practical step to better serve clients with emerging technologies.
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