Ready for retirement?  Whether you are turning 62 or 65 or decided to wait until you are 70 - Social Security and Medicare are ready and waiting for your phone call.  The staff at Medicare Sherpa would like to congratulate you on meeting this milestone and we've outlined a few key points as you decide whether to retire early at 62, enroll in Medicare at 65 or hold-out until your 70th birthday. 

Qualifying for Full Social Security Benefits:

Here’s a little help. If you were born in 1937 or earlier, you qualified for full Social Security benefits at 65. But anyone born after 1937 (in other words, anyone who turns 69 or less this year) can't collect full benefits at 65. The required age for full benefits gradually increases for those born from 1938 through 1942. For example, someone born in 1940 becomes eligible at 65 years, 6 months. If you were born between 1943 and 1954, you can claim full benefits at 66. Then, for those born from 1955 through 1959, the full retirement age again increases in increments. As the rules currently stand, if you were born in 1960 or later, you are eligible for full Social Security benefits at age 67.

Granted, you don't have to wait until your designated age to begin collecting Social Security. You can start at age 62 regardless of your birth year. However, if you cash in before your full retirement age, your benefits are reduced. The advantage of retiring earlier, of course, is that you collect benefits for a longer time. The disadvantage is that your monthly benefit is permanently reduced. For example, persons born in 1945 will have their benefits trimmed by 0.52 percent for each month prior to their full retirement age of 66 that they begin collecting benefits.

And if you can afford it, waiting until 70 has one benefit: Your payout will increase 8% a year. Not many things in life rise 8% a year with a guarantee.

Who handles Medicare enrollments?

The Social Security Administration handles Medicare enrollments. If you get benefits from Social Security or the Railroad Retirement Board (RRB), you will automatically get Part B starting the first day of the month your turn 65. If you are under the age 65 and disabled, you will automatically get Part B after you get disability benefits from Social Security or RRB for 24 months.

If you don’t want Social Security when you turn 65 what do you do about Part B?

It is important to note that if you retire at 65 and delay applying for your Social Security benefit until you are 67 – you may want to consider enrolling in Medicare Part B when you turn 65. If you delay enrolling in Medicare Part B until you turn 67 you will be facing a Part B Late-Enrollment penalty and your Medicare Part B coverage will not start until July 1st of the year you sign up. The cost of Medicare Part B will go up 10% for each 12-month period that you could have had Medicare Part B but didn't take it. You will have to pay this extra amount as long as you have Medicare Part B. For more information on enrolling in Medicare Part B, please visit www.medicare.gov and use their Medicare Part B Late-Enrollment calculator to estimate the increased monthly premium you will pay if you decide to delay your enrollment in Medicare Part B.

If you would like to file for Medicare Parts A & B only, you can apply by calling Social Security at 1-800-772-1213. Their representatives can make an appointment for you at any convenient Social Security office and advise you what to bring with you. Call Social Security three months before 65 of birthday to enroll in Medicare Parts A & B. Once enrolled, Medicare will send you the bill that will have to be paid on a quarterly basis.

Still Working Into Your Retirement?

You can wait to sign up for Part B – without penalty – if you or your spouse are working and have group health coverage based on that work or if you are disabled if you or your spouse are working and have group health coverage based on that work. If you are still working into your retirement and lose your employer coverage – you can still join a Medicare Advantage plan, in most cases, you won’t have to pay a penalty, as long as you join during the 8-month period that begins when the month your employment ends or the group health plan coverage ends, whichever happens first.

Example

Harry is almost 65 and is getting ready to retire and enroll in

Medicare. Harry’s wife, Jane, is 63, and works for a large

company. Both Harry and Jane have health insurance coverage

through Jane’s employer’s group health plan. When Harry gets

the Initial Enrollment Questionnaire in the mail from Medicare,

he fills it out and reports that he has insurance through his wife’s

employment. His wife’s employer employs more than 20 people.

This insurance is Harry’s primary (first) payer. In this situation,

he does not need to apply for Part B.

Special Enrollment Period for International Volunteers

If you waited to enroll in Part B because you had health insurance while volunteering in a foreign county, usually you won’t pay a late-enrollment penalty to sign up for Part B.

You have several choices when it comes to retirement, each requires careful thought and planning.  Whether you choose to retire at 62, 65 or 70 - everyone at Medicare Sherpa hopes you find a way to Celebrate Turing 65.

About the Author:

My name is Dana Cutter and I am Founder and Editor of Medicare Sherpa. Our staff spends their days searching the Internet for the best content and advice on retirement.  On our site you will find articles on Social Security, Medicare Benefits, Prescription Drug Benefits and more. Please feel fee to send me an email with ideas for content, site improvements or general help launching your online persona. I hope you will consider joining and I am looking forward to reading more about you online.

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