When you reach the age of 65, you are eligible to enrol in Medicare. You may wish to consider this option if you are no longer employed at the time, or if you are not married to someone who is covered by a group health insurance plan.
In reality, if you lose access to a group health plan (either your own or that of a spouse), you may be subject to surcharges on your Medicare Part B premiums if you do not enrol in coverage within a reasonable amount of time. As a result, if you are above the age of 65 and do not have access to group health insurance, enrolling in Medicare makes sense.
Now, if you’re enrolling in Medicare, you may be tempted to register for Social Security benefits at the same time as well. However, whether or not this is a sensible idea will depend on your age.
It All Comes Down to Timing
- Despite the fact that Medicare eligibility begins at age 65, you may find yourself enrolling in the programme at a later age if you have group health coverage until then.
- Moreover, if that’s the case, filing for Social Security benefits at the same time may turn out to be a beneficial decision.
- However, if you are enrolling in Medicare at the age of 65, you may want to reconsider whether or not to file for Social Security.
- This is due to the fact that you will not be eligible for your full monthly Social Security income until you reach full retirement age, often known as FRA.
FRA is determined by your year of birth and begins to accrue at the age of 66, 67, or anywhere in between. You will have your benefits lowered permanently if you apply for Social Security before attaining the full retirement age (FRA). Due to the nature of these benefits, if you join up for them at age 65 in conjunction with enrolling in Medicare, you may find that your benefits are reduced by up to 13.34 percent, depending on your specific FRA.
It is less harmful to enrol in both Medicare and your FRA at the same time if you are signing up for Medicare at the age of 67 and your FRA is also 67. Of course, deferring Social Security payments over the Federal Retirement Age (FRA) allows you the opportunity to increase your benefits by 8 percent a year – for life — until you reach the age of 70. However, filing at your specific FRA is a fair option to follow, particularly if you do not intend to postpone your retirement for any period of time.
If you are applying for medical insurance or social security, you should proceed with caution
Your Medicare Part B premiums will be withdrawn from your Social Security income automatically if you are enrolled in both Medicare and Social Security at the same time as you are working. However, this does not exclude you from enrolling in Medicare if you are not receiving Social Security benefits.
If you want to go that path, all it means is that you’ll be responsible for paying your Part B premiums on your own. However, you will have the option of automating that procedure so that it does not become a hassle.
Of course, you may opt to enrol in Medicare at age 65 and file for Social Security benefits at that time, despite the fact that your benefits may be reduced as a result. There’s nothing wrong with doing so if you’ve done the calculations and established that it makes financial sense to do so. The key, though, is to be aware of the repercussions of enrolling in Social Security early — as well as the penalties of failing to enrol in Medicare on time — in order to make an informed decision.
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