Turning 65 marks a significant milestone in retirement planning, as it’s the age at which you become eligible to enroll in Medicare. You can begin your Medicare enrollment three months before your 65th birthday to get the process started.
If you’re considering signing up for both Medicare and Social Security simultaneously, it’s certainly an option, but whether it’s the best move for you depends on your personal circumstances. Here are a few crucial points to consider if you’re thinking about enrolling in both programs at the same time:
You Can Delay Both Enrollments Beyond Age 65
Although Medicare eligibility begins at age 65, you’re not required to enroll in it immediately if you don’t need to. If you have health coverage through an employer’s group plan, it might be beneficial to wait before signing up for Medicare, especially if your current plan offers better or more cost-effective coverage.
If you choose to delay Medicare enrollment, ensure your group health plan qualifies you for a special enrollment period later to avoid late enrollment penalties. Generally, if your employer’s plan has 20 or more employees, this should not be a problem.
Similarly, there’s no obligation to start Social Security benefits at age 65. While you can begin receiving Social Security benefits as early as age 62, you don’t have to apply just because you’ve turned 65.
Enrolling in Social Security at 65 May Reduce Your Monthly Benefits
While it’s possible to sign up for Medicare and Social Security at the same time, doing so may reduce your Social Security benefits. Full Social Security benefits are available only at your full retirement age, which is at least 66 and up to 67, depending on your year of birth.
If you’re still working and prefer Medicare over your employer’s health coverage, you might consider delaying Social Security benefits. This way, your benefits can continue to grow until you reach full retirement age.
One thing to consider is that if you enroll in Medicare before Social Security, you’ll need to pay your premiums out-of-pocket. Social Security beneficiaries have their Medicare Part B premiums deducted directly from their benefits, but you can set up automatic payments from a bank account to manage your premiums if you’re not yet receiving Social Security.
Understanding the interplay between Social Security and Medicare is crucial. Keep these key considerations in mind when deciding whether to enroll in both programs at the same time.
